Nike's guidance for a second year of falling sales
Nike expects its sales to fall again this year and its profit to come in well below what analysts expected, with sales in China dropping sharply. It is cutting costs and jobs to turn the business around, but that will take years, which weighs on Nike more than on other consumer companies.
What changed
We lowered our expected return for NIKE against the rest of the consumer discretionary sector.
| Symbol | Without it | With it | Change |
|---|---|---|---|
| NIKENKE | 7.08% | 5.73% | −1.36pp |
Each stock as it stands now, and without this story. Figures are annual expected returns (arithmetic means). They are not a forecast or a promise.