Nike falls as competitors gain market share

Nike has stated that it anticipates an unexpected 10% decline in quarterly sales due to increased rivalry from more recent rivals like On and Hoka.

Nike’s stock fell more than 12% in after-hours trading as a result of the announcement; if the losses continue on Friday, the company may have lost $15 billion in market value.

The biggest sportswear firm in the world also disclosed to investors that it is seeing a decline in demand in foreign markets, particularly China.

Nike, nevertheless, is hopeful that fresh merchandise and a marketing initiative during the next Olympic Games in Paris would aid in the company’s consumer comeback.

During the earnings call, CEO John Donahoe stated, «The Paris Olympics offers us a pinnacle moment to communicate our vision of sport to the world.»

Additionally, the business reduced its projections for the fiscal year 2025.
Direct-to-consumer sales reportedly fell by 8% as a result of some consumers switching to trendier startup businesses.