The company predicted a surprise slump in 2025 sales
Nike Inc (NYSE:NKE) stock is brushing off a fiscal fourth-quarter earnings beat, after the apparel retailer also reported a revenue miss after yesterday's close. Plus. the company predicted a surprise slump in 2025 sales and issued a dismal fiscal first-quarter revenue outlook. In response, NKE is down 18.3% to trade at $77 at last check.
In turn, Morgan Stanley, J.P. Morgan Securities, and Barclays downgraded the shares to "equal-weight," while Raymond James and Stifel lowered their ratings to "market perform" and "hold," respectively. The stock also attracted at least 15 price-target cuts. Coming into today, 21 of the 28 analysts in coverage called NKE a "buy" or better.
Nike stock is today trading at four-year lows, and pacing for its worst single-day percentage loss on record. Shares are also set to close below support at the 40-day moving average for the first time since late May, and now carry a more than 28% year-to-date deficit.
Options volume is running at 22 times the intraday average volume, with 101,000 calls and 84,000 puts traded so far. The most popular contract is the weekly 6/28 75-strike put, which expires at the close.
Over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), NKE's 50-day call/put ratio of 2.40 ranks higher than 95% of annual readings. In other words, traders have been more bullish than usual in the past 10 weeks.