NIKE (NYSE: NKE) stock plummeted in pre-market trading Friday after the company announced fourth-quarter revenue that missed analysts’ expectations and revealed plans to update its fiscal 2025 guidance.
NIKE announced its fiscal fourth quarter 2024 results, revealing mixed outcomes. The global sportswear giant reported a revenue of $12.6 billion, marking a 2% decrease from the corresponding period last year and falling short of analysts’ expectations, as compiled by Visible Alpha.
Despite the revenue shortfall, Nike’s net income showed significant growth. The company reported a net income of $1.5 billion, or 99 cents per share, surpassing the $1.03 billion, or 66 cents per share, reported in the same period last year and beating analysts’ estimates.
Nike CEO John Donahoe, emphasized the company’s proactive approach to current challenges while maintaining focus on strategic priorities. He stated,
“We are taking on near-term challenges head-on while making continued progress in the areas that matter most to NIKE’s future — serving the athlete through performance innovation, moving at the pace of the consumer, and growing the complete marketplace.”
He expressed confidence in the company’s competitive positioning, noting,
“I’m confident that our teams are lining up our competitive advantages to create greater impact for our business.”
Chief Financial Officer Matthew Friend highlighted the challenges faced in the fourth quarter and hinted at adjustments in the company’s Fiscal ’25 outlook. However, the company did not provide specific figures for these adjustments in the earnings release.
Friend said that Nike is repositioning itself to enhance competitiveness and achieve sustainable, profitable long-term growth.
NIKE (NYSE: NKE) Stock Price Action
As of 07:17 a.m. (Eastern Time) Friday, NKE stock traded at $80.47, marking a 14.57% decrease compared to the previous trading session.
