Nike Stock Plummets to Lowest Level in Over a Decade
Nike's stock price has plummeted to its lowest level in over 12 years, trading around $36. This represents an 80% decline from its record high of $179 reached in November 2021.
Telsey Advisory Group cut its price target on Nike (NKE) stock to $44 from $47 while maintaining a 'Market Perform' rating. The firm said Nike's turnaround is progressing slowly, but sales trends remain weak.
Nike's latest results showed some progress, but also continued pressure in key parts of the business. The company's fiscal fourth-quarter revenue reached $10.97 billion, down 1% from the previous year. Nike direct revenue declined 7% year-on-year, including a 12% drop in Nike Brand Digital.
The company has been refocusing on sport, adjusting its product portfolio and rebuilding its wholesale relationships as part of its turnaround. However, CEO Elliott Hill said the company continued to face 'top-line headwinds,' while CFO Matthew Friend noted that sell-through remained challenged.