Nike Stock Sinks To 52-Week Low - Here's Why

Nike, Inc. (NYSE:NKE) shares are trading sharply lower Wednesday after the company beat third-quarter expectations but issued a weaker-than-expected outlook. The athletic apparel giant topped Wall Street estimates, but flat revenue growth, segment-level pressure, and a softer fourth-quarter forecast weighed on sentiment. Nike expects fourth-quarter sales of $10.656 billion to $10.878 billion, well below the $11.236 billion consensus estimate. Earnings Beat, Growth Stalls Nike reported third-quarter revenue of $11.28 billion, slightly ahead of expectations, while adjusted earnings came in at 35 cents per share, also beating estimates. However, revenue was essentially flat year over year, highlighting uneven momentum across the business. Nike Brand sales posted modest gains, but direct-to-consumer revenue declined, dragged down by weaker digital performance. Wholesale emerged as a key bright spot, rising during the quarter as Nike leaned into retail partnerships—signaling a shift toward a more balanced distribution strategy. Turnaround Underway, But Pressure Persists Nike continues to execute a multi-phase turnaround plan focused on restoring profitability and strengthening brand positioning. Still, near-term results remain under pressure. Inventory cleanup efforts and broader structural changes weighed on performance during the quarter. Management said it is actively reducing excess inventory to rebuild pricing power and improve brand health over time. CEO Elliott Hill pointed to progress in reshaping the business across regions and categories, with a renewed focus on innovation in key areas such as running and football. Regional Trends Mixed North America showed relative resilience, supported by wholesale strength and improving product demand. However, digital sales remained weak amid a promotional environment. International performance was uneven. Europe and China continued to face softer demand and elevated inventory levels, limiting growth. Nike is also working to streamline operations through supply chain optimization and workforce adjustments—moves expected to support margin expansion over time. Outlook Overshadows Progress Despite solid execution in parts of the business, Nike's weak fourth-quarter guidance overshadowed the earnings beat, raising concerns about the pace of recovery. NKE Price Action: Nike shares were down 13.98% at $45.43 at the time of publication on Wednesday. The stock is trading at a new 52-week low, according to Benzinga Pro data. Image via Shutterstock