Nike Stock Has Cratered This Year. Time to Buy?
The sportswear specialist's stock is down about 50% since the beginning of 2024.
Investors who thought sports apparel and shoe company Nike (NYSE: NKE) was a good buy at the end of 2024, following a 30% decline, have unfortunately been dead wrong -- at least for now. Year to date, the stock has fallen another 28%. This puts the stock's total loss since the beginning of 2024 at a painful 50% as of this writing.
With such an extraordinary decline in the rearview mirror, some investors may be wondering if now is a good time to buy the stock. But investors may want to proceed cautiously. Despite its cheaper valuation today, there are still significant risks.
Let's not sugar coat it: Nike's business is getting pummeled. Revenue in its most recent quarter fell 9% year over year and earnings per share declined 30% to $0.54. This is about in line with the company's performance for the trailing-nine-month period ended Feb. 28, 2025. Total revenue and earnings per share in these three quarters fell 9% and 26% year over year.