Nike stock is now underperforming the S&P 500 by the largest margin in 25 years, according to Yahoo Finance AlphaSpace. The stock is down 35% year to date compared to a 13% advance for the S&P 500, and since CEO Elliott Hill officially took over on October 14, 2024, the shares have shed about 49%. In late June, Nike reported fiscal fourth quarter revenue of $11.0 billion, a 1% decline on a reported basis and a 4% drop on a currency-neutral basis, while diluted earnings per share of $0.72 were distorted by a one-time tariff recovery benefit. The company projected fiscal first quarter revenues to be down by a low-to-mid single-digit percentage and reiterated flat earnings per share growth over the next three quarters, excluding tariff recovery proceeds. Analysts from Evercore ISI and Goldman Sachs expressed caution, with Evercore's Michael Binetti noting no clear reason to expand the price-to-earnings ratio and Goldman's Brooke Roach pointing to incrementally cautious macro commentary offsetting near-term business greenshoots.
Nike IncNike reported weak Q4 revenue and EPS, projected further revenue declines, and analysts expressed caution, driving the stock's underperformance.
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