Nike shares have fallen to their lowest level in more than 11 years, trading at prices last seen during the Obama presidency, according to Yahoo Finance AlphaSpace data. The stock is down 36% this year and 43% over the past 12 months. The decline comes ahead of Nike's fiscal fourth quarter earnings report on Tuesday, where the company is expected to show sales down 2% to 4% and gross profit margins lower by 25 to 75 basis points. The company faces a challenging restructuring under CEO Elliott Hill, increased competition from Adidas and On Holding, and continued pressure in its China business, where sales fell 10% in the prior quarter. Stifel analyst Peter McGoldrick warned that a dominant market position may not translate to value creation without a shift in consumer preference or a reinvigoration of innovation, and said he is not ready to call a bottom on the shares.
Nike IncSales expected down 2-4%, China sales fell 10% in prior quarter, indicating weak end-customer demand.
adidas AGMentioned as a competitor gaining at Nike's expense, benefiting from increased competition.
On Holding LtdMentioned as a competitor gaining at Nike's expense, benefiting from increased competition.