Nike sales slump due to weak consumer confidence.

American sporting goods giant Nike has once again reported disappointing financial results, with sales in both the United States and China declining significantly. The company is also concerned about the negative impact of weak consumer confidence and changing tariff policies. Following the release of its earnings report, Nike’s stock price plunged nearly 5% in after-hours trading.

Nike announced after the U.S. stock market closed on the 20th that its revenue for the third quarter of fiscal year 2025 (ending February 28, 2025) had declined by 9% year over year. Additionally, revenue in North America and Greater China fell by 9% and 17%, respectively, last quarter. Direct sales dropped by 12% year over year, while wholesale revenue declined by 7%.

In terms of financial outlook, Nike expects sales to continue shrinking this quarter, possibly by around 13% year over year—an even steeper decline than the 11.4% estimated by analysts surveyed by LSEG. The company also plans to accelerate efforts to clear excess inventory and outdated styles, which could lead to a decline in gross profit margins of 4 to 5 percentage points this quarter.

Nike’s Chief Financial Officer, Matt Friend, stated that geopolitical tensions, tariff policies, currency fluctuations, and weakening consumer confidence are all contributing to market uncertainty. Additionally, Nike is facing increasing competition from rivals such as Hoka and On. Its stock price has already plunged 30% in 2024.

**Photo reference: https://www.bloomberg.com/opinion/articles/2022-06-28/nike-sales-slowdown-in-the-us-should-worry-investors **