Nike (NKE) Shares Drop Over 14% After Weak Turnaround Guidance

AI Summary

Nike (NKE) reported fiscal third-quarter earnings, revealing a projected sales decline between 2% and 4% for the current quarter, worse than the expected 1.9% growth. The company anticipates a significant 20% drop in China sales, despite FX benefits, affecting overall recovery efforts. Wall Street banks including Goldman Sachs and Bank of America downgraded Nike, citing patience waning due to a lengthy turnaround process. The company's gross margin has declined year-over-year for seven consecutive quarters, with external factors potentially impacting future input costs.