NKE: Nike Stock Stumbles 12% on Revenue Miss, Steep Sales Drop Guidance

Sportswear retailer couldn’t just do it even after topping earnings estimates. It now expects to lose even bigger market share.

• Nike stock NKE tripped over its earnings report and forward-looking guidance in after-hours Thursday. The sportswear maker’s shares are lower by more than 12% (once again) ahead of Friday’s opening bell as investors feared the company’s dwindling sales are slowly phasing it out of the market it once dominated. Nike said it projects its sales to drop 10% during the current quarter.
• For the three months ended May 31, the sneaker mainstay posted revenue of $12.61 billion, down 2% year-over-year, and below estimates of $12.84 billion. Earnings per share, on the other hand, beat consensus views, arriving at $1.01 a share against calls for 83 cents a share. Over that time span, net income was $1.5 billion, compared with last year’s $1.03 billion. Full-year revenue of $51.4 billion was just under the $51.6 billion expected.
• Shares of Nike haven’t been running ahead. In fact, they’re down 12% this year before today’s session knocks some more of the valuation. Rising competition from brands such as New Balance, and Hoka has slowly chipped away at Nike’s foothold to the point where analysts are getting concerned whether the longtime industry bellwether still has what it takes to remain in the lead.