Nike Stock Trades at a Once-in-a-Decade Valuation. Is It a Buy?
Athletic apparel giant Nike (NYSE: NKE) has already completed three quarters for its fiscal 2025 and results haven't been great. Through the fiscal third quarter of 2025, revenue is down 9% from the same three quarters of fiscal 2024. Meanwhile, "demand creation expenses" (sales and marketing) are up 8%. In other words, Nike is spending more to sell less, which is obviously suboptimal.For this reason, Nike's profits have plunged. Granted, it's still quite a profitable business with $3 billion in net income so far in fiscal 2025. But this represents a 28% drop from the same period of fiscal 2024.Needless to say, there are troubles with Nike, and investors have abandoned the stock. As of this writing, Nike stock has dropped to a valuation just below 2 times sales. Shares haven't been this cheaply valued since 2013.Continue reading
Athletic apparel giant Nike (NYSE: NKE) has already completed three quarters for its fiscal 2025 and results haven't been great. Through the fiscal third quarter of 2025, revenue is down 9% from the same three quarters of fiscal 2024. Meanwhile, "demand creation expenses" (sales and marketing) are up 8%. In other words, Nike is spending more to sell less, which is obviously suboptimal.
For this reason, Nike's profits have plunged. Granted, it's still quite a profitable business with $3 billion in net income so far in fiscal 2025. But this represents a 28% drop from the same period of fiscal 2024.
Needless to say, there are troubles with Nike, and investors have abandoned the stock. As of this writing, Nike stock has dropped to a valuation just below 2 times sales. Shares haven't been this cheaply valued since 2013.
