Nike Is Having A Horrific Day On The Stock Market

Godspeed to all NIKE shareholders today after the company was down 20% today on the stock market.

The major downfall comes as Nike (NKE) said it expected revenue to decline 10% in the first quarter of 2025 with next year's annual revenue to also decline overall. What hurt the retailer even more was the fact that they had initially told shareholders that they were expecting a sales growth next year. 

Clearly, Nike's internal analysts blew that one worse than Rory McIlroy's putt performance at this year's U.S. Open. 

WHY DID THE STOCK DROP SO MUCH? 

There's not just one single reason why Nike is down $18-$20 today.

"Fiscal [2025] will be a transition year for our business," Nike CEO John Donahoe announced during Friday's earnings call. 

But it may be the company's previous branding transitions that have put it in the position that it is today.

The truth is that Nike has delved into more socio-political ventures, be it racism or the environment, in an attempt to make the product seemingly available to all - something that it always was, of course. 

OutKick founder Clay Travis believes that this as well as partnering with people like Colin Kaepernick has hurt their bottom line. 

HAS NIKE LOST ITS WAY?

While teaming up with Colin Kaepernick, Nike also would also drop their exclusive deals with athletes like Steph Curry who went to Under Armour, and also some no-name player named Lionel Messi, who ended up with Adidas and is absolutely not one of the biggest stars in the world. (Yeah, right).

Hell, they even screwed up Major League Baseball uniforms!!! Something that fans are not happy with whatsoever. 

OTHER BRANDS ARE BYPASSING NIKE EVERY MONTH

For decades, no matter what happened to Nike financially, they could always fall back on running. Think about it - Nike Running shoes and apparel were everywhere. Yet in the past year they have absolutely hurt themselves in that lane by handing over a massive amount of the running market to up-and-coming brands like "On" and "Hoka," which are up 45% and 46% respectively, while Nike is down 28% Year-to-Year.

Could it be that while Nike was pushing itself to be everything to everyone and pandering for political points, that the younger demographic didn't care and simply wanted a product that was not only satisfactory - but also cool? 

Throughout the decades, the Nike Swoosh was seen as the pinnacle symbol of believing in yourself while pushing and persevering through all adversity to be the very best that you can be; because who knows - maybe one day you too could become your favorite athlete or star. 

That message of "Hope" has been turned into "Nope," and Nike can only have themselves to blame for their self-inflicted dismal earnings and future outlook that they reported today.

ARE YOU BUYING AS MUCH NIKE PRODUCT AS YOU USED TO?  TWEET ME WITH YOUR THOUGHTS: @TheGunzShow