Nike shares sank 3.8% on Friday and are now down 16.4% for the year, continuing a stunning reversal for the once high-flying brand that has faced layoffs, a CEO switch, declining sales and an MLB uniform misstep over the past year.
The stock closed Friday at $63.17, a level last seen in January 2018. It is now off 64% from its high-water close of $177.51 in November 2021.
In 2024, Nike’s stock was the second-worst performer among the 30 components of the Dow Jones Industrial Average with a 30% drop. Its 7.2% decline the prior year made it the third-worst stock in the Dow.
The current market value for the company is $97 billion, down from a peak of $281 billion.
In sharp contrast, Nike’s longtime competitor Adidas has rebounded after its struggles, following the appointment of new CEO Bjørn Gulden. He took office in January 2023, two months after the brand cut ties with Ye, the rapper previously known as Kanye West, over his antisemitic remarks.
After two years of litigation and arbitration, Adidas and Ye reached an out-of-court resolution of their contractual dispute stemming from Adidas terminating the relationship.
Despite the Yeezy controversy, Adidas’ stock price is up 74% since the start of 2023, as investors have bought into the turnaround plan led by Gulden. The company sold its last Yeezy product during the 2024 fourth quarter.
In October, Elliott Hill returned to Nike to replace John Donahoe as CEO. Hill has vowed to bring innovation back to the brand and reestablish stronger relationships with retailers.
Nike just reported its third-quarter financials with revenue of $11.27 billion for the three months ending Feb. 28. It marked a 9% decline from the previous year’s quarter but easily topped Wall Street’s already pessimistic expectation of $11.03 billion. Earnings per share of $0.54 nearly doubled the $0.29 estimate.
“We’re beginning to drive a more diversified portfolio,” Hill said during the earnings call. “It will take time to reach the volume to replace the handful of classic franchises we over-indexed, but our approach is simple, help consumers fall in love with something new from Nike.”
Hill hopes Nike investors can also fall in love with the stock again.
