Nike's fourth-quarter 2024 financial results were not as expected, and its stock price plummeted 20% in a single day
The brand expects sales to fall 10% in the first quarter of 2025, far higher than analysts expected.
Nike released its fourth-quarter 2024 financial report on Thursday , and the overall results were disappointing, causing its stock price to plummet 20% to $75.04 on Friday.
Nike reported fourth-quarter 2024 revenue of $12.6 billion, 2% lower than analysts' forecast of $12.84 billion and lower than the $12.8 billion in the same period last year. This is extremely unfavorable for Nike, especially as it has had a difficult year. The company's stock price has fallen nearly 30% since January 2024.
Nike expects sales to fall 10% in the first quarter of 2025. Analysts initially expected sales to fall by only 3%. Such a drastic revision has shaken investors' confidence. The brand also announced that total sales for fiscal 2025 are expected to fall by a mid-single digit, rather than the 1% growth predicted by analysts.
However, Nike has not completely lost hope. Net income in the fourth quarter of 2024 was $1.5 billion, a significant increase from the previous year, with earnings per share of 99 cents, while net income in the fourth quarter of 2023 was $1.03 billion, with earnings per share of 66 cents. Overall, Nike's full-year sales for fiscal year 2024 were $51.4 billion, almost the same as $51.2 billion in 2023.
