Nike ( NKE 0.11% ) is one of the most well-known brands on the face of planet. And since its founding 60 years ago, the company has grown to become a powerful sportswear enterprise.
But the shares have been a huge disappointment. In the past three years, they have tanked 54% (as of July 8), which is not what you'd expect from an industry leader. Maybe the future will be different.
Where will this top apparel and shoe stock be three years from now? Nike's troubles are hard to ignore Nike is dealing with a demand problem . Sales totaled $51.4 billion in fiscal 2024 (ended May 31), which was essentially flat with the previous year.
Growth has been hard to come by. This is not what shareholders have become accustomed to from Nike. "We now expect fiscal '25 reported revenue to be down mid single digits with the first half down high single digits," CFO Matt Friend said on the Q4 2024 earnings call .
He blamed macro uncertainty, uneven consumer trends, weaker digital sales, and declines in classic shoe franchises, among other factors. Nike is certainly also dealing with tough competition in the apparel and footwear industries. This shines a light on just how difficult it is to find consistent success in the fashion sector.
Consumer preferences are always prone to change. And these tastes can be unpredictable. Moreover, businesses have to deal with the fact that there are no switching costs for customers.
There's nothing preventing them from shopping wherever they want. Plus, the ind.
