Nike Shares Get Dunked On As Company Warns of Devastating 15% Sales Wipeout…

Nike’s latest earnings call wasn’t just bad—it was “your star player just blew out their ACL in the first quarter” bad. The Swoosh is now bracing for a double-digit percentage sales drop in Q4, thanks to a nasty combo of tariffs, weak consumer confidence, and a turnaround plan that’s moving at the speed of me trying to install my wifes latest IKEA purchase with confusing instructions. 

Live look of me last night: 

(Source: Giphy) 

In short, Nike CFO Matt Friend tried to soften the blow, but investors weren’t having it. Shares dropped nearly 5% today, with the stock already being down -10% month to date. So what are the ugly numbers here? Well, it turns out, Nike is now predicting Q4 sales to decline at the low end of the mid-teens range—translation: somewhere around 13-15% down, which is worse than the 11.4% dip analysts were expecting. 

Aaaand it gets worse: Gross margins are expected to drop 4-5 percentage points as Nike scrambles to clear out stale inventory that nobody wants. China sales? Down 9% in the critical holiday quarter—because apparently, Xi Jinping isn’t rocking Air Force 1s anymore. Meanwhile, North American sales have plummeted 4%, yet still beat low expectations because, well, Americans will always find money for sneakers. 

(Source: CNBC) 

Of course, Nike is blaming everything from tariffs and tax regulations to consumer confidence and geopolitical uncertainty. Basically, if it’s bad and it’s happening in the world, Nike is saying it’s affecting their bottom line. To be fair though, Trump’s new 20% duties on Chinese imports are no doubt one of the biggest gut punches. 

For instance, Nike sources a ton of its materials and manufacturing from China, and these tariffs are about as welcome as Crocs at a black-tie event. The company didn’t say whether it would jack up prices to offset the costs, but let’s be real—if you thought Jordans were expensive before, just wait.

(Source: Yahoo Finance) 

What’s more is that Nike’s also dealing with a consumer spending slowdown. When people are tightening budgets, the first thing to go is “do I really need a seventh pair of sneakers?” And with even the strongest retailers waving red flags about softening demand, Nike’s turnaround just got a lot more complicated.

So how can Nike get its groove back? Well, obviously the company knows it needs to start actually selling shoes people want again—which is why they’re going all-in on innovation and buzzy collaborations. Their new Pegasus premium line is nearly sold out in North America, while the Romero 18 is absolutely killing it among everyday runners. Now the only thing left to save Nike is none other than Kim K’s new Nike x SKIMS collab. ICYMI, Kim K is now a private equity legend, so maybe she really can fix Nike too LOL.

(Source: Giphy) 

Additionally, Nike is also doubling down on women’s sports, launching a Super Bowl ad (its first in decades) to hype female athletes and compete with Lululemon, Alo Yoga, and Vuori. CEO Elliott Hill (a 32-year Nike veteran) is betting that Nike can recapture lost market share—but it’s not going to be easy. Clearing out old inventory is still a headache, and until consumer confidence rebounds, Nike’s turnaround might take longer than Wall Street hoped.

In the end, Nike is still a dominant brand, and long-term, it’ll probably be fine. But in the short term? It’s looking rough. There’s plenty of sh*t to go around that’s causing a dent in the bottom line, but if you believe in Nike’s ability to innovate and bounce back, this could be a buy-the-dip moment. But if you’re looking for a fast recovery? You might want to sit this one out and wait for the dust to settle. 

(Source: Giphy) 

For now, do what you will with this information and place your bets accordingly. As always, stay safe and stay frosty, friends! Until next time…

P.S. Just when you thought our beloved congressmen couldn’t get any greasier, one Republican lawmaker decided to YOLO $175k into a stock—right before a major FDIC announcement hit. Lucky timing? Insider edge? You be the judge. We broke it all down inside this week's Stocks.News premium article—click here to check it out ASAP! 

Stocks.News does not hold positions in companies mentioned in the article.