Shares of athletic apparel company Nike ( NKE 1.17% ) plunged 30.6% in the first half of 2024, according to data provided by S&P Global Market Intelligence .
When taking out just two days of trading, the stock would have been roughly flat for the six-month period. But it reported financial results twice. And the stock took a hit both times, dropping it below the 14.
5% return for the S&P 500 . Nike's fiscal calendar differs from traditional calendars -- its fiscal 2024 ended in May. On March 21, the company reported financial results for its fiscal third quarter of 2024.
And it reported for its fiscal fourth quarter on June 27. While the stock was already down year to date, the drop after its Q4 report was more pronounced. NKE data by YCharts Nike's headline numbers for fiscal 2024 aren't alarming in isolation.
Full-year revenues were modestly up, gross margin improved, and net income was up 12% year over year to $5.7 billion. And yet something alarmed investors.
For perspective, at the beginning of the year there were 20 analysts recommending that investors buy Nike stock, according to TipRanks. Now there are only 13. Headwinds started blowing harder against Nike's business in Q4.
And now management expects a challenging fiscal 2025. For the year, it expects revenue to be down and certain expenses to be up, which could lead to a drop in net profit as well. Direct demand is drying up It's an interesting situation for Nike.
In recent years, shoe stocks have done well as consume.