Nike is one of the most prominent and recognizable brands on the entire planet, but unfortunately, that did not stop the company from seeing an absolutely massive and historic drop in their stock price when markets opened on Monday morning.
According to a report from Matthew Kish of The Oregonian, the company’s stock price absolutely plummeted on Monday after news that sales were expected to decline, marking the largest single-day drop in stock price in the entire history of the company.
“Nike shares on Friday tumbled nearly 20% after the company said it expected sales to decline in its new fiscal year, the latest sign of severe turbulence at Oregon’s biggest company,” Kish wrote on Monday morning.
“It was the biggest one-day drop in Nike history, wiping out roughly $28 billion in shareholder wealth.”
While this is obviously a massive single-day drop in stock price, Kish points out that this actually just follows a trend as the company’s stock price has been falling consistently for multiple years.
“Even before Friday’s tumble, Nike’s stock had been heading steadily downward after climbing above $170 in November 2021. Shares closed Friday at $75.36,” Kish wrote.
The decline in sales appears to be a result of a shift in strategy to focus on direct sales and classic shoes instead of wholesale and innovation. It does not appear that the strategy is working.
