Nike shares plunged more than 12% in after hours trading
Nike expects a surprising 10% drop in quarterly revenue, citing increasing competition from newer brands like On and Hoka.
This announcement caused Nike shares to plunge over 12% in after-hours trading, potentially leading to a $15 billion market value loss. The company faces weakening demand in international markets, including China.
However, Nike remains optimistic about new products and a marketing campaign for the Paris Olympics to regain consumer momentum. CEO John Donahoe highlighted the Olympics as a key moment for the brand.
Nike's direct-to-consumer business declined 8%, and the company lowered its fiscal year 2025 outlook. Nike currently sponsors nine national teams at UEFA Euro 2024.
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