Nike warning hits stocks prices of Lululemon, On, Under Armour and Hoku maker Deckers Outdoor
Nike shares dropped ten percent after the company posted declining revenue, announced restructuring plans, and issued a weak full-year outlook that missed analyst expectations. CEO Elliott Hill warned that sportswear demand will remain soft in the medium term, driven by excess inventory and discounting. This drop pushed Nike stock to its lowest level in thirteen years and triggered premarket losses for competitors including Lululemon, On, Under Armour, and Hoka maker Deckers Outdoor. Inflation and youth unemployment are also contributing to the broader sector downturn.
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- ✓ Nike shares plummeted ten percent following a weak revenue outlook and layoff plans.
- ✓ Nike CEO Elliott Hill warned that sportswear demand will stay weak in the medium term.
- ✓ The downturn affected the stock prices of competitors including Lululemon, On, Under Armour, and Hoka maker Deckers Outdoor.
What changed
Nike reported a weak quarterly performance and issued a full-year guidance below analyst estimates, sparking layoffs and a sector-wide stock decline.
Live updates
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Nike Plunge Triggers Sportswear Sector Slump
Nike shares dropped ten percent after the company posted declining revenue, announced restructuring plans, and issued a weak full-year outlook that missed analyst expectations. CEO Elliott Hill warned that sportswear demand will remain soft in the medium term, driven by excess inventory and discounting. This drop pushed Nike stock to its lowest level in thirteen years and triggered premarket losses for competitors including Lululemon, On, Under Armour, and Hoka maker Deckers Outdoor. Inflation and youth unemployment are also contributing to the broader sector downturn.
Why it matters
The sharp decline tests investor confidence in CEO Elliott Hill and his turnaround efforts as the sportswear giant alters its operating model and implements job cuts. The wider selloff indicates that broader economic pressures like inflation and shifting consumer trends are weighing heavily across the entire athletic apparel industry. Market participants remain focused on whether competing brands can withstand the persistent softness in consumer demand.
What is confirmed
- Nike shares plummeted ten percent following a weak revenue outlook and layoff plans.
- Nike CEO Elliott Hill warned that sportswear demand will stay weak in the medium term.
- The downturn affected the stock prices of competitors including Lululemon, On, Under Armour, and Hoka maker Deckers Outdoor.
What to watch next
- Execution and timeline of Nike restructuring and layoff plans
- Upcoming quarterly earnings reports from Lululemon, On, Under Armour, and Deckers Outdoor
confidence 100%Sources used for this update (16)
- BBC — What's gone wrong at Nike? How the world's sportswear giant lost its mojo
- OregonLive.com — Nike announces new restructuring, layoffs. Stock dips to lowest level in 13 years
- Fox Business — Nike plans job cuts under sweeping restructuring plan
- WWD — Nike CEO Warns of New Layoffs Next Year Amid Changing Operating Model
- CNBC — Nike shares plummet 10% after weak revenue outlook and layoff plans underway
- Yahoo Finance — Nike warning hits stocks prices of Lululemon, On, Under Armour and Hoku maker Deckers Outdoor
- Forbes — Forbes Daily: Nike’s Latest Earnings Report Sends Its Stock Plunging
- Yahoo Finance — Nike warning hits stocks prices of Lululemon, On, Under Armour, and Hoka maker Deckers Outdoor
- Reuters — Nike's struggles test investor confidence in CEO Hill's turnaround effort
- www.cnbc.com — Nike stock falls 10% after revenue falls and layoff plans ...
- finance.yahoo.com — Nike warning hits stocks prices of Lululemon, On, Under ...
- uk.finance.yahoo.com — Nike warning hits stocks prices of Lululemon, On, Under ...
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