Nike Sinks to New Low After Kylian Mbappe Ditches Brand for On Holding
Nike Inc. (NKE) shares slumped to a fresh annual low of $35.50 on Friday, extending declines to a fourth consecutive week amid slumping sales and fierce new competition.
The company's troubles deepened when French soccer superstar Kylian Mbappe switched his endorsement deal from Nike to On Holding (ON), which has been expanding its presence in the soccer market with high-profile partnerships. Evercore ISI described the news as 'a direct challenge' to Nike and Adidas (ADDYY), which have long dominated the category.
Opendoor Technologies Inc. (OPEN) also fell to a 52-week low last week, despite CEO Kaz Nejatian's efforts to reassure investors that the company is making progress in addressing its financial struggles. The online real estate firm has been hurt by ongoing housing market issues and delayed turnaround plans.
McDonald's Corp. (MCD) shares slipped to a fresh annual low of $247.65 on Friday, extending losses to four consecutive sessions as slowing U.S. growth continued to weigh on the company's performance. The fast-food giant is reevaluating its value strategy in response to weak sales and increasing competition.