Nike (NKE) stock fell as much as 19% on Friday after the retailer said it expects revenue to decline more than it previously thought in the coming year.
The company said Thursday it expects revenue to fall mid-single digits in 2025, including an expected 10% decline in the first quarter. Nike had initially guided for overall sales growth in 2025.
Nike stock was heading for its worst single-day drop since 2001.
The guidance reflects a continuing trend from Nike’s fiscal 2024 fourth quarter, which the shoemaker reported after the closing bell on Thursday. The company said quarterly revenue in the fourth quarter fell 2% from the year prior to $12.61 billion, below Wall Street’s estimates for $12.86 billion. Meanwhile, Nike’s $0.99 earnings per share exceeded analysts’ expectations of $0.66. Nike’s direct-to-consumer sales declined 8% from the same quarter a year ago to $5.1 billion.
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