Nike’s Gloomy Forecast Weighs On Stock: Retail Investors Run For Cover

Nike, Inc. (NKE) shares dropped over 5% in after-hours trading on Thursday after the sports apparel and shoes retailer's mixed quarterly report.

If the weakness continues into Friday's session, the stock risks falling to its COVID-19 pandemic lows from March 2020.

Nike said revenue in its ongoing fourth quarter will decline in the mid-teens percentage range, more than a consensus estimate of a 12.2% drop as per LSEG estimates from Reuters.

CFO Matthew Friend said sales "will begin to moderate" in the quarter as the company discounts items to clear old inventory.

Nike is undergoing a realignment after falling share and lackluster revenue growth in recent years. 

In October, the company brought back veteran Elliott Hill as its CEO, who is now working to revive Nike's relationship with retailers and develop products focused on its core sports audience.

In the reported Q3, sales and profit topped expectations, partly driven by strong consumer response to its new shoe launches, such as the Pegasus Pro and Vomero 18. 

Overall sales dropped 9% to $11.27 billion, above an estimate of $11.01 billion. Earnings per share fell 30% to $0.54, versus an expectation of a 62.2% drop.

However, Nike's China business, where sales dropped 17%, was a drag and fanned worries among investors.

On Stocktwits, users debated whether the share drop was an overreaction or Hill's strategy was not working.

Overall, sentiment among retail investors ended on a 'bearish' (27/100) note Thursday, with the score worsening from a day earlier.

Message volume jumped 1,777%, signaling significant interest in the stock.

Nike sentiment and message volume as of 20, 2025 | Source: Stocktwits

Growth concerns also weighed on overall market sentiment, fueled by the Federal Reserve's downward revision of GDP projections and Chair Powell's warning about "unusually high" economic uncertainty.

Nike shares ended Thursday at $71.86, down 5% year-to-date and in touching distance of their 52-week low level of $68.62.

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