Well Nike numbers are out… and yeah, I’m not gonna lie, this is pretty much what I was talking about in my last post 💀
Nike technically beat on EPS, but missed on revenue, and then proceeded to guide for a high-single-digit revenue decline for FY2027, China sales were down 26% too. 😭
Remember my last post when I asked what the bull case even was anymore? I genuinely want to hear it now. Because at some point “it’s at a 13 year low” can’t just be the entire investment thesis.
The brand can be legendary and the stock can still have a terrible business trajectory.The turnaround story keeps getting pushed further out, Nike is still dealing with competition, China is getting smoked, and now management is talking about more restructuring and job cuts.
Reuters is reporting that Nike expects the restructuring to save $2.5B by FY2031, but that’s a LONG way from now, And this is the part that gets me.
The stock is already down massively, yet the actual turnaround still needs more time. So what exactly is supposed to make this thing rip back to $50+?
A new shoe?
AI?
Jordan somehow carrying the entire company?
China suddenly waking back up?
At what point does “Nike is too strong to fail” become “Nike is too big to fall apart quickly,
but that doesn’t mean the stock can’t keep bleeding”?
I’m not saying Nike is going to $20 tomorrow. But after tonight, I definitely don’t think $20 sounds as crazy as people were making it seem when I posted this the first time.
Last post about nike 💀✌️ good luck to the bag holders.( and yes I played shorts but way otm so iv probably take everything)