Nike's Direct-to-Consumer Sales Fall 7% in Q4, Digital Down 12%, Despite Wholesale Growth
NKE is trading near its 52-week low of $40 (0.5% below the low) on elevated volume (2.0× avg).
Summary
Nike's Q4 revenue breakdown reveals a 7% decline in its direct-to-consumer (DTC) business, with digital sales down 12% and company-owned stores falling 7%. This contrasts with a 4% rise in wholesale revenue to $6.6 billion. This detailed performance data follows the company's Q4 earnings report earlier today, which showed an EPS beat. The significant drop in the strategically important, higher-margin DTC channel, especially digital, raises concerns about Nike's long-term profitability and strategic execution, despite the growth in wholesale.
At the time of this announcement, NKE was trading at $39.78 on NYSE in the Trade & Services sector, with a market capitalization of approximately $60.8B. The 52-week trading range was $40.00 to $80.17. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.