Nike shares crashed this morning as the company announced disappointing fourth-quarter 2024 results on Thursday. NKE shares are currently down over 20% and the stock price is at $75.04 at the time of writing.
Nike reported fourth-quarter 2024 revenue of $12.6 billion, down 2% from analyst forecasts of $12.84 billion. The figure was also below last year’s revenue of $12.8 billion in the same three-month period. The decline is particularly damaging for Nike, which has already endured a difficult year, with its stock price falling 13% since January.
While the actual revenue decline was minimal, the stock price fell so drastically due to a 10% decline in revenue that the brand had forecast for the current quarter, Q1 2025. The revenue decline was initially forecast by analysts to be only 3%, so the huge difference shook investors’ confidence in the company. It was also announced that total revenue for fiscal 2025 is expected to decline in the mid-single digits, as opposed to the 1% increase that analysts had originally forecast.
However, all hope is not lost for Nike, as net sales in the fourth quarter of 2024 rose sharply year over year. Net sales came in at $1.5 billion, which translates to 99 cents per share, compared to $1.03 billion in the fourth quarter of 2023, which translated to 66 cents per share. Overall, Nike’s revenue of $51.4 billion for the full fiscal year of 2024 remained at the level of $51.2 billion in 2023.
