Report: Nike Is Dealing With Major Financial Problems

https://thespun.com/.image/c_fit%2Ch_800%2Cw_1200/MTgzMTI4MTg4Nzc2NDkwMzM2/nike-to-lay-off-2-percent-of-global-workforce-amid-drop-in-sales.jpg

07/01/2024 09:11 AM

NEW YORK, NY - JUNE 15: The Nike 'swoosh' logo is displayed on the outside of the Nike SoHo store, June 15, 2017 in New York City. Nike announced plans on Thursday to cut about 2 percent of its global workforce. (Photo by Drew Angerer/Getty Images)

Nike, the official outfitter of the NFL, NBA and MLB, is apparently dealing with some major financial problems.

On Friday, Nike saw $28 billion in shareholder value disappear, with the stock dropping by roughly 20 percent in just one day. Nike's sales are expected to take a hit moving forward.

The stock closed at $75.65, a big drop - though not a surprising one, considering what's been happening over the past two-plus years. Nike's stock was at close to $175 more than two years ago.

CNBC had more:

On Thursday, Nike warned that sales in its current quarter were expected to decline by a staggering 10% – far worse than the 3.2% drop LSEG had projected – after it posted its slowest annual sales gain in 14 years, excluding the Covid-19 pandemic.
The company also said it expects fiscal 2025 sales to be down mid-single digits when it previously expected them to grow.

It'll be interesting to see how Nike chooses to operate moving forward when it comes to sponsoring professional sports leagues like the NFL, MLB and NBA, along with big-time college programs.

Nike's current deal with the NFL runs through 2028.