Nike shares have fallen 35% year-to-date, underperforming the S&P 500 by the largest gap since 1999 amid execution struggles and weak outlooks.
Nike’s stock has declined 35% in 2024, lagging the S&P 500’s 13% gain by the widest margin in 25 years. Since CEO Elliott Hill took over in October 2024, shares have dropped nearly 49%.
The company reported fiscal fourth-quarter revenue of $11.0 billion, down 1% year-over-year and 4% on a currency-neutral basis. Earnings per share of $0.72 were boosted by a $0.52 one-time tariff recovery benefit. Nike projected first-quarter revenue to decline by low-to-mid single digits and flat EPS growth, excluding tariff proceeds.
Execution challenges, shifting consumer preferences, and competition from brands like On Holding have delayed a turnaround. Leadership changes, including a new CFO, have yet to stabilize performance.