10 Worst Performing Dow Stocks Year-to-Date

3. NIKE, Inc. (NYSE:NKE)

Number of Hedge Fund Holders: 66

Share Price Performance Year-to-Date: -23.53%

NIKE, Inc. (NYSE:NKE) designs, develops, and markets athletic footwear, apparel, equipment, and accessories. It stands as the leading global seller in this sector. The company operates through both direct sales through NIKE-owned stores and digital platforms and wholesale channels that include independent distributors and licensees across numerous countries. Most of its products are manufactured by independent contractors outside the U.S.

Some of NIKE’s (NYSE:NKE) main issues include intense competition, declining earnings and revenue, and a weak revenue forecast for fiscal Q2. In fiscal Q1 2025, while the company beat the earnings estimates by $0.18 after reporting an EPS of $0.70, they were down 26% year-over-year. The revenue missed the estimates by $50 million and declined by 10%.

The results met the company’s expectations but showed lower-than-anticipated unit sales, especially in NIKE Digital and partner stores in Greater China. The company is intentionally reducing its reliance on classic footwear franchises, leading to a decline in revenue from these products. As the company shifts its product portfolio, it expects continued challenges in the short term, especially in its lifestyle and Jordan brand sectors.

NIKE (NYSE:NKE) expects that Q2 revenues will also decline, with projected gross margins impacted by higher promotional activity and supply chain challenges. Moreover, the company has been seeing quite a neutral sentiment from analysts for the near term as well. The latest Hold ratings were given by Piper Sandler and UBS on October 11 and 15, respectively. The price targets of $80 and $82 also show a slight downside to the company stock as of October 18.

Coho Partners stated the following regarding NIKE, Inc. (NYSE:NKE) in its Q2 2024 investor letter:

“While we believe each of those companies is performing in line with or better than our expectations and that the moves lower are unjustified, both CVS and NIKE, Inc. (NYSE:NKE) reported disappointing performance in recent results. For Nike, the company reported mixed fourth quarter Fiscal 2024 results and weak Fiscal 2025 guidance, reflecting top line pressure from lifestyle product slowing, lower digital sales and increased macro headwinds in international markets. To manage through the decline in sports footwear and apparel demand, the senior leadership team is focused on cutting costs and reinvesting in marketing and innovation to drive sales. The company is starting to see green shoots for performance product innovation and has historically emerged stronger from these downturns due to benefits from a leading market position and scale.”