Nike stock declines sharply as company extends turnaround timeline

Nike has reported a difficult year, with total sales falling 10% to $46.3 billion. Net profit dropped 44% to $3.2 billion. The final quarter was especially weak, with sales down 12% and profit falling 86% to just $211 million. Nike's share price has lost more than half its value since 2021 and has barely moved in seven years, while the wider US stock market more than doubled. Management now expects recovery to take until 2027, longer than previously planned. Analysts are divided on the stock's future. Barclays has a positive view and set a price target of $45, while Wolfe Research is more cautious, targeting $28. Nike will hold an Investor Day in November to share a five-year financial plan.