☰
The iconic sports apparel and accessories brand has struggled in recent years due to a miscalculated shift away from multi-brand retailers and rising competition from emerging brands.
Nike, Inc. (NKE) shares hit a 52-week low this week as investors pulled back amid concerns over the company's turnaround strategy and weak business outlook.
Shares hit $64.95 intraday on Wednesday, their lowest in the past 12 months, before ending slightly higher than that level. The stock gained marginally on Thursday.
If NKE falls further, it will test a seven-year low point of $59.16 from March 2020.
The iconic sports apparel and accessories brand has struggled in recent years due to a miscalculated shift away from multi-brand retailers and rising competition from emerging brands.
In October, Nike brought back veteran Elliott Hill as its CEO, and he has since led a series of changes as a part of a broad turnaround plan.
Hill has said Nike will fix its relationships with retailers, refocus on its traditionally core areas like basketball and running, and sell more premium products.
Last week, Nike reported quarterly earnings and gave a weak outlook, partially weighed by the impact of new U.S. trade tariffs.
The company expects revenue in its ongoing fourth quarter to decline in the mid-teens percentage range, more than a consensus estimate of a 12.2% drop from LSEG/Reuters.
CFO Matthew Friend said at the time that sales "will begin to moderate" in the ongoing quarter as the company discounts items to clear old inventory.
Since the report, Nike has seen several brokerages, including Bernstein, Morgan Staley, and JP Morgan, cut their price targets on its shares.
This week, DA Davidson, BNP Paribas, and Daiwa also lowered their PTs by an average of $6.
On Stocktwits, the retail sentiment was 'bullish,' up from 'neutral' a week ago. Message volume has been 'extremely high' throughout the week.
A user said the stock faces little resistance and could rise to $70.
Another expressed frustration with the company, including significant competition and a deteriorating brand name.
Currently, 19 of 39 analysts covering the stock rate it 'buy' or higher, while 18 rate it 'hold', according to Koyfin data. Their average price target is $81.39.
NKE shares are down 13% year to date.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
subscribe to Asianet Newsable WhatsApp channel by clicking here.