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Nike gears up for earnings | Shares down 60% from all time highs
BY TIO Staff
|March 18, 2025The spotlight intensifies on Nike's performance, as it gears up to release it's fiscal third-quarter earnings report after the closing bell on the 20th March 2025.
Nikes shares are 60% down from all time highs
Past performance is not a reliable indicator of future performance.
The company's shares have tumbled more than 60% from their all time high as a result of strategic missteps, strong competition and a challenging geopolitical landscape.
The narrative surrounding Nike has been of a strategic pivot towards direct-to-consumer channels since the pandemic, that has led to a neglect of its wholesale channels. Adding to this, Nike's innovation pipeline and its performance in the Chinese market have become points of concern.
Its a marathon, not a sprint
The fiscal third-quarter earnings report stands as a critical marker in its journey towards recovery and growth. Nike is anticipated to reveal figures that resonate with the challenges it has faced: a projected $11.02 billion in revenue for the quarter, down from the previous year's $12.43 billion. The earnings per share (EPS) for the period ending February 2025 is estimated to decline to a sobering 30 cents. This is significantly down from the previous reported figure of 78 cents for the period ending November 2024.
The fundamental and technical indicators continues to point towards a negative outlook for the stock. With the next significant support levels being around $60 and $50 per share. The relative Strength Index (RSI) also suggests that the stock is not yet oversold on the weekly and monthly timeframes.
With that said, the stock seems to have found some recent support around the current $70 per share mark, which coincides with the 61.8% Fibonacci retracement level. Some market analysts are maintaining a cautiously optimistic view of the company's recovery to growth, but the question remains when and where?
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