Companies and Brands
Nike Worst Performing Dow Stock Of 2016, Down 17.6%
Published:
Last Updated:
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive
compensation for actions taken through them.
Shares of Nike (NYSE: NKE) have been slaughtered in 2016, down the most of any Dow (DJIA) stock. Shares have fallen 17.8% to $51.52 this year. The Dow is higher by 9.9% for the same period to 19,152
Nike is no longer the growth stock it once was, although revenue growth is healthy. Recently, it has faced a resurgent Adidas, the second largest company in the category, white-hot Under Armour (NYSE: UA), and China’s Anta Sports Products
Another drag on Nike shares are the extent to which athlete endorsers are critical to sales. Nike has the grandfather of these in Michael Jordan, but he is years past his basketball career. Nike competitors have tried to flank it in every sport from soccer to basketball. Large endorsement deals can be work in the tens of millions of dollars.
In its most recent fiscal quarter, Nike’s results:
• Revenues up 8 percent to $9.1 billion; 10 percent growth excluding currency changes*
• Diluted earnings per share up 9% to $0.73 compared to prior year
• Worldwide futures orders up 5 percent; 7 percent growth excluding currency changes
• Inventories as of August 31, 2016 up 11 percent
Wall St. may not consider 10% real growth
Cash Back Credit Cards Have Never Been This Good
Credit card companies are at war, handing out free rewards and benefits to win the best customers. A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges. See our top picks for the best credit cards today. You won’t want to miss some of these offers.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.