Why Is Nike Stock Down

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Why Is Nike Stock Down

Why Is Nike'S Stock Down By 62%?

Nike (NKE) stock is down by 62%, which is quite shocking given that the global stock markets are mostly positive. But we must also understand that every business has to go through ups and downs. This also includes the businesses that have been around for a while!

There's no doubt that Nike is a global leader in the sportswear category. But Nike has been struggling in the last few years, and the leadership is trying everything in its power to fix the issues.

Nike'S Net Income Down By 44%

But despite all the measures from Nike's management, the markets are not convinced. That's why the stock is down by 11% in 2025 and is almost 62% below the ATH.

The data from FY2025 showed that Nike's net income has declined by 44% and revenue is down by 10%. This is a clear sign that Nike seriously needs to overhaul its business structure.

The management is also trying to fix and reinvent its distribution strategy. Also, they have now delved into the wholesale network after relying heavily on the digital channels.

And most important of all is the product innovation ,which is a key factor in driving customers. Also, Nike is now refocusing on its sport-centric approach in an effort to return to its roots.

quick look at the Nike stock price shows that investors are not happy at all. They want strong growth in earnings and revenue, and that's the part where Nike is lacking for now.

But given how Nike is trying really hard, it doesn't seem too far-fetched to say that Nike will eventually make a comeback.

Also, the Nike stock is very cheap as the P/S ratio is only 2.2. This means the current valuation of Nike is the cheapest in the last 10 years.

With all things considered, it doesn't sound too bad a deal to acquire some Nike shares. But if you are thinking of making big money quickly from Nike shares, then you need to look elsewhere.

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