Nike (NKE) shares fell in prolonged buying and selling Thursday after the athletic attire large warned gross sales might take successful within the present quarter beneath the corporate’s turnaround plan, with new tariffs adding to uncertainty. 

Nike CFO Matt Good friend advised traders fiscal fourth-quarter gross sales are projected to fall by a proportion within the low finish of the “mid-teens vary» in comparison with the identical interval a 12 months earlier, in accordance transcript offered by AlphaSense. Consensus estimates from Seen Alpha present Wall Road analysts had anticipated gross sales to fall about 12%.

“We imagine that the fourth quarter will mirror the biggest affect from our win now actions,” Good friend stated, including the corporate can also be “navigating via a number of exterior elements that create uncertainty within the present working surroundings, together with geopolitical dynamics, new tariffs, risky overseas trade charges and tax rules, in addition to the affect of this uncertainty and different macro elements on shopper confidence.”

Nike shares initially ticked greater, earlier than giving again features to drop 5% in after-hours buying and selling Thursday following the earnings name. They’ve misplaced greater than one-quarter of their worth over the previous 12 months via the closing bell.

Gross sales Dropped in Q3, However Not as A lot as Anticipated

The warning for the fourth quarter got here as Nike reported third-quarter gross sales fell from a 12 months in the past, however not as a lot as analysts anticipated.

The athletic attire large noticed its third-quarter income drop 9% year-over-year to $11.27 billion, although the determine topped the analyst consensus from Seen Alpha. Earnings of $794 million, or 54 cents per share, declined from $1.17 billion, or 77 cents per share, a 12 months earlier, a narrower drop than Wall Road anticipated. 

The higher-than-expected quarter represents Nike’s second beneath new CEO Elliott Hill, who took over in October. Earlier this month, Oppenheimer analysts advised Hill’s efforts to revitalize Nike look like «taking shape,» primarily based on quarterly outcomes from Foot Locker (FL), which sells Nike attire.

In the course of the firm’s earnings name, Good friend advised that headwinds from the corporate’s efforts to shift its portfolio would begin to ease after the fourth quarter.

UPDATE—March 20, 2025: This text has been up to date because it was first revealed to incorporate extra info and mirror more moderen share worth values.