Nike’s stock price drops to its lowest point in 13 years

Nike’s stock dropped to its lowest level in 13 years on Thursday, falling almost 4% during after-hours trading.This happened because the company announced first-quarter results that were worse than expected and also predicted lower revenue for the coming period.

Nike’s stock price dropped by 3.8% to $33.80 just after 5:00 p.m. EDT, their lowest level since September 2013.

Nike said it made $11.2 billion in revenue for the first quarter, which was a bit less than what people expected of $11.3 billion. The company mainly pointed out that the drop was because of less money earned in Greater China, Europe, the Middle East, and Africa.

The company’s earnings per share were $0.48, which was better than what people expected, but it was slightly lower than the $0.49 from the previous year.

Nike said it thinks its sales will go down by a high-single-digit amount in the 2027 fiscal year.

Nike has introduced a new way of running its business and a plan to save money, called «Nike Pace,» which was announced on Thursday.This plan will help speed up updates to Nike’s supply chain, change how it’s organized in three different international areas, build a new campus in India, and make adjustments to its employees.

Nike’s CEO, Elliott Hill, said in a statement that this work will lead to fewer job positions at Nike. He said that «decisions about roles that are impacted by this work will start in the calendar year 2027 and keep going after that.»

Consumers are starting to choose other brands like Hoka, On Running, Adidas, and Puma. Nike has also seen a drop in its performance in the Chinese market, with several instances of decreased sales in the country since 2021.