Nike Shares Hit Decade Low Following Weak Sales Forecast
Nike shares fell 10 percent as the company warned of lower sales. Executives cited Middle East unrest and weak China demand for the slower turnaround pace.
NIKE INC -CL B is facing a challenging path to recovery as geopolitical unrest in the Middle East and persistent economic headwinds in China weigh on its performance. The sportswear leader issued a cautious outlook on Tuesday, warning of a sharp decline in sales for the current quarter and a slower-than-anticipated turnaround process. Higher trade-related costs and a shift in consumer spending habits have further pressured the company's profit margins.
Following the announcement, the company's stock fell 10% to $47.35 in premarket trading on Wednesday, positioning it to open at its lowest level in more than a decade. Chief Financial Officer Matthew Friend noted that the regional conflict has significantly impacted store traffic and sales across the Europe, Middle East, and Africa (EMEA) region.
