Daily Brief - Nike Falls

TLDR: Nike shares fell sharply after a weak outlook and a significant trading drop, amid struggles in direct sales and fierce competition from new brands.

Nike Inc. shares plummeted after the company released a full-year outlook that fell short of expectations, heightening investor concerns about declining demand for its sneakers and apparel.

The stock dropped as much as 13% in extended trading on Thursday evening, compounding a 17% decline over the past 12 months.

Nike's sales have struggled in recent quarters as its attempt to shift away from wholesalers has faltered. Sales through its website, app, and stores dropped by 8% in the company’s fiscal fourth quarter.

The revenue slowdown is pressing Nike to accelerate product development amidst increasing competition from up-and-coming brands like On Holding AG and Deckers Outdoor Corp.’s Hoka.

Both ONON and DECK are facing headwinds due to Nike's earnings performance, even as the underdogs gain market share from the largest but currently untrendy sportswear company.

Market Movers: How Did S&P Sectors Do In June?

1. 6.75% - S&P Technology
2. 5.09% - S&P Consumer Discretionary
3. 4.50% - S&P Telecom
4. 2.70% - S&P Health Care
5. 2.22% - S&P Real Estate
6. 1.39% - S&P Consumer Staples
7. 0.89% - S&P Energy
8. 0.61% - S&P Financials
9. -0.75% - S&P Industrials
10. -2.47% - S&P Materials
11. -3.20% - S&P Utilities

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