NIKE, Inc. Stock Sinks on China Sales Warning as Turnaround Doubts Deepen
Nike shares fell 15.5% to $44.63, their lowest close in over a decade, after the company warned of another quarterly sales decline and deeper troubles in China. Nike now expects China revenue to drop 20% this quarter and overall revenue to fall 2% to 4%, missing analyst forecasts. Gross margin slipped to 40.2% and inventories remain high at $7.5 billion.