Nike Stock Crash BIG Time: Is This the Ultimate Buy or Bye?
As Q3 2024 kicks off, us sneaker hypesters wonder: which brands are leading the charge? And then, a bombshell dropped, shaking all our expectations! Nike stock crash by 20%, marking its worst record in 13 years! The losses wiped out $28.41 billion from the company’s market valuation, leaving everyone stunned. But, what led to this drastic situation? What’s Nike’s response and their future expectations? And can the Olympics save the Swoosh from this harsh downturn?
Nike Stock Crash: Crunching the Numbers
In every situation like this, we gotta begin with numbers to set things straight.
Nike pulled in $12.6 billion in Q4 2024, a 2% dip from the projected $12.84 billion and below last year’s $12.8 billion. Ouch! That hit Nike hard, especially with its stock already taking a 13% dive since January.
The stock tanked because Nike projected a whopping 10% sales drop for Q1 2025—way more than the 3% analysts expected, sending shockwaves through investors. They also warned that total sales for 2025 could drop in the mid-single digits, a far cry from the 1% increase analysts foresaw.
But it’s not all doom and gloom. Nike saw a big jump in Q4 2024 net revenue to $1.5 billion (99 cents per share), up from $1.03 billion (66 cents per share) in Q4 2023. Overall, Nike’s $51.4 billion sales for 2024 matched 2023’s $51.2 billion.
Meanwhile, JD Sports saw a 5.4% share drop, with Puma down 14%. Adidas’s shares saw slight gains.
So, what’s behind these frozen figures in the Nike game?
Nike Stock Falls: Reasons & Reactions
Despite reporting flat fiscal year revenue, Nike saw its Q4 net revenue rise by nearly half a billion from a year earlier. Yet, why is the stock taking such a beating?
Nike attributes the lower sales forecast to “more aggressive management of our classic footwear franchises; ongoing challenges on Nike Digital; muted wholesale order books, with new products not yet at scale; a softer outlook in Greater China; and several timing factors specific to the quarter,” explained Nike CFO Matt Friend.
However, we can tell the sneaker titan is already taking big measures ahead. We’re talking historic German soccer team deals, new endorsements with rising stars, reviving rare & super hyped releases from the archives! Yet, amid all the ongoing actions, one stands as a solid hope for Nike: the upcoming Olympics.
Will the 2024 Paris Olympics Rescue Nike?
Now, can Nike really bounce back from this setback with the Olympics approaching? Well, Nike is owning the spotlight this Olympic season with jaw-dropping releases like never before. From Paris-themed kicks that turn heads to introducing their groundbreaking first Breakdancing Nike shoe, things are heating up fast.
So, during Olympic season, you’re gonna see Swooshes all over athletes’ gear and Nike.com. But recent snags like the revealing track uniforms and MLB uniform flub have folks thinking twice about hitting “buy.” CEO John Donahoe’s hyped about the Olympics, promising bold storytelling and epic retail stunts. However, investors care more about cash, slicing $28 billion from Nike’s market cap. The outcome? We gotta watch and see!
Nike Stock Crash: Let’s Wrap It Up
So, the situation’s serious, and what’s scary is even investors are questioning: should we Just Do It & buy the dip? However, senior financial analysts warn it might not be the best move, with concerns of stocks diving deeper!
Whatever happens, we sneakerheads and lucky resellers aren’t letting go of those Nike goldmines. Many new profitable collaborations are on the way. So make sure you get your sneaker bots ready for those looming drop battles. And keep your eyes on our blog for everything releases, copping guides, and all the hot tea! See ya later, fam!
P.S. If you’re wanna dive deeper into the thrilling world of Nike, these guides are a must-read: