Nike Q3 Guidance Disappoints

about 1 month ago

Emily Rafo

"Okay, so I'm looking at shares of Nike, ticker NK. They're down about 10% right now. Reported earnings on Thursday. Their third quarter guidance disappointed investors. It wasn't that bad, but they expect third quarter sales to be down low single digits, gross margins to shrink by roughly 2 percentage points due to tariffs. Can't believe we're still talking about tariffs, but they are still something that is absolutely weighing on companies here. The company also reported weak sales in China and weak sales in the Converse brand, which anecdotally feels right."

Nike reported disappointing Q3 guidance with weak sales and margin pressures driven by tariffs and lower sales in China and Converse, prompting a price target reduction from 70 to 65.

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