Why Nike Stock Fell This Week
Nike (NYSE: NKE) shareholders lost ground to a falling market this week. Their stock dropped 10% through Thursday trading compared to a 3.2% slump in the S&P 500, according to data provided by S&P Global Market Intelligence. The decline pushed the footwear and apparel giant deeper into negative territory so far in 2022, down 38% compared to the market's 20% drop.
It was driven by an earnings report that had investors worried about a persistent growth slowdown ahead.
Nike announced on Monday that sales for the period that ended in late May, its fiscal fourth quarter, were up just 3% after adjusting for currency exchange rate shifts. That result essentially met Wall Street expectations and reflected solid demand across most of the portfolio. Nike's profitability didn't take much of a hit from supply chain shocks and rising costs, either. Gross profit margin fell by less than 1 percentage point, in fact.
Source Fool.com
