Nike Shares Fall After 4Q Revenue Miss, Warning Over Fiscal Year Outlook

By Sabela Ojea

Shares of Nike on Thursday dropped in post-market trading after the shoe giant reported an unexpected drop in fourth-quarter sales, leading to updated outlook for the year.

Shares fell 5.5% to $89 in after-market trading. The stock has declined 14% since the beginning of the year.

The sneaker and apparel company posted revenue for the three months ended May 31 of $12.61 billion, down 1.7% from the same period a year earlier. Analysts polled by FactSet had expected revenue to rise to $12.86 billion.

The challenges seen during the quarter have driven an updated outlook for the year, Finance Chief Matthew Friend said. The company is expected to provide details on the guidance during its earnings call.

"We are taking actions to reposition Nike to be more competitive, and to drive sustainable, profitable long-term growth," Friend said.

Nike saw a 6% drop in footwear sales, its main business, in its main market, North America. It also recorded an overall 8% decline in direct-to-consumer sales.

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

(END) Dow Jones Newswires

June 27, 2024 17:13 ET (21:13 GMT)

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