(CercleFinance.com) – Nike opened sharply lower on Wall Street on Friday, the day after the publication of sales figures lower than expected and, above all, forecasts deemed disappointing by the market.
The action of the sporting goods manufacturer, which was already down 13% this year at yesterday’s close, fell 16% at the start of the session, signing by far the biggest drop in the Dow Jones index. .
The value thus returns to its lowest level for more than four years.
Over the three months ended at the end of May, the last quarter of its staggered 2023/2024 financial year, the American sports equipment giant saw its net profit increase by 45% to $1.5 billion.
But its turnover fell by 2% to 12.6 billion, while the consensus was targeting 12.9 billion.
After this disappointing performance, the Beaverton (Oregon) group warned that it no longer expected slight growth in its sales for the new 2024/2025 financial year, now anticipating a decline of around 5%.
Many analysts have lowered their targets on the group following the publication.
Bank of America’s teams, who are maintaining their buy rating on the stock, indicate that they have reduced their target from 113 to 104 dollars, citing a “more pronounced than anticipated” revision of objectives.
‘The Chinese market is fragile and the global economic context remains difficult,’ explains BofA in its note.
At Wedbush Securities, we say they are concerned about the recurring difficulties of the world number one in the sector, whose recovery is still awaited.
‘This long-standing flagship continues to encounter surprising difficulties and we believe that investors’ patience with the management team is wearing thin by the day,’ the broker points out.
‘From a long-term perspective, Nike has been one of the best growth stories we’ve covered and we’re still hopeful that the brand will get its mojo back,’ he adds.
“But it looks like we’re going to have to wait longer than expected for that,” Wedbush concludes.
Nike’s warning dragged down the entire sector, including its great German rival Adidas (-0.4%) and American newcomer Under Armor (-2.4%).
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