Nike, Inc (NYSE:NKE) recently released its financial results for the fourth quarter of fiscal year 2024. The company generated total sales of $51.4 billion, which increased by 0.4% year-over-year. Wholesale revenue for the fourth quarter was $7.1 billion, an increase of 5% year-over-year. After taxes and all expenses, the company earned a net profit of $5.7 billion, up 12% year-over-year.
Since this spring, Nike stock has fallen back below $100.00. The biggest break came last week, when the stock plunged from $90.00 to $80.00, which was due to a massive shareholder selloff. This was due to unfulfilled expectations for earnings, which were expected to be significantly better according to Nike Inc.’s earlier forecasts.
Among other things, Nike has recently embarked on a major restructuring of the company, with a mass layoff of around 40% of the company’s senior management. Nike said back in April that it would eliminate 740 jobs in Oregon, which equates to a cost reduction of around $2 billion. A publicly available source revealed that Nike “laid off 32 vice presidents, 112 senior directors and 174 directors, representing more than 40% of the jobs the company eliminated.” 22 senior administrative assistants and four executive assistants also lost their jobs. According to the annual report, the company employed 83,700 tribal workers in 2023. Nike, Inc (NYSE:NKE)’s share price closed at $73.05 at the end of trading on Monday, down $2.38, hitting a 52-week low.
Graph Source : www.tipranks.com
Nike, Inc (NYSE:NKE) also pays a quarterly dividend of $0.37 per share. The annual dividend yield is 2.03%. Multinational investment corporations and financial strategists estimate an average target price of $92.48 per share for the short- to medium-term investment horizon.