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Nike stock sinks almost 20% and in one day loses more than $20 billion in market value

Nike stock sinks almost 20% and in one day loses more than  billion in market value
Nike stock sinks almost 20% and in one day loses more than  billion in market value

It comes after predicting a surprising drop in its tax revenues for 2025, so in just one day it lost about US$23 billion in market value.

Nike shares plummeted 19% this Friday on Wall Street after predicting a surprise drop in its tax revenues for 2025, so in just one day lost about US$23 billion in market value.

The American sports clothing and equipment giant recorded a net profit of $5.7 billion at the end of its fiscal year, which represents an advance of 12.4% compared to the previous year.the multinational said, but warned that the current year “will be a transitional one”, anticipating a 10% drop in revenue in the first fiscal quarter.

During the conference with analysts after the publication of Nike’s accounts, the president and CEO of the multinational, John Donahoewarned that Increased macroeconomic uncertainty and a worsening exchange rate have led to a reduction in forecasts for the current fiscal year, which “will be a year of transition for our business.”

In this regard, Matthew Friend, executive vice president and financial director of the company, anticipated that Revenue in the fiscal year will fall about 5%, including a 10% decline in first-quarter revenue. “This reflects more aggressive actions in managing our heritage footwear franchises, ongoing challenges at Nike Digital, a softer outlook in China and a number of timing factors specific to the quarter,” he explained.

For the entire fiscal year, Nike’s turnover reached $51.362 billion0.3% more than a year before, despite the 14% drop in Converse sales, to $2,082 million.

The multinational’s revenue in North America totaled 21.396 billion dollars, 1% less, although they increased in the same proportion in Europe, the Middle East and Africa (EMEA), up to 13,607 million dollars, while in China they grew 4%, up to 7,545 million dollars and 5% in Asia Pacific and Latin America, up to 6,729 million of dollars.

In the fourth quarter of its fiscal year, Nike earned net profit of $1.5 billion, 45.5% more than a year before, while its income totaled 12,606 million dollars, 1.7% less.

Source: Ambito

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