Investors can contact the law firm at no cost to learn more about recovering their losses
LOS ANGELES, July 09, 2024 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises Nike, Inc. ("Nike" or the "Company") (NYSE: NKE) investors that a class action has been filed on behalf of investors. Nike investors that lost money on their investment are encouraged to contact Lesley Portnoy, Esq.
Investors who purchased and/or sold shares between March 19, 2021 and March 21, 2024 are encouraged to contact attorney Lesley F. Portnoy, by phone 310-692-8883 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case via www.portnoylaw.com. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
On June 27, 2022, Nike disclosed its fourth quarter and full year 2022 financial outcomes following the market's close. Quarterly revenues saw a 1% decline year-over-year, with wholesale revenues down by 7% year-over-year. Consequently, Nike Class B common stock dropped by $7.72 per share, nearly 7%, closing at $102.78 per share on June 28, 2022.
On September 29, 2022, Nike released its first quarter fiscal year 2023 financial results, reporting a 22% decrease in net income and a 20% decline in diluted earnings per share compared to the previous year. The company also noted a substantial decrease in gross margin, down 220 basis points year-over-year, driven by heightened disposal of excess inventory, which increased by 44% from the first quarter of 2022. As a result, Nike Class B common stock fell by $12.21 per share, nearly 13%, closing at $83.12 per share on September 30, 2022.
On December 21, 2023, Nike published its second quarter fiscal year 2024 financial results and hosted its corresponding investor earnings call post-market. Matthew Friend, Nike's Executive Vice President and Chief Financial Officer ("CFO"), acknowledged that the company's total retail sales fell short of expectations, while its digital platforms experienced reduced consumer traffic due to heightened promotional activities by competitors across the market. In response, Nike disclosed plans to adjust its channel growth strategies for the remainder of the year and identified opportunities to achieve up to $2 billion in cumulative cost savings over the next three years. Consequently, Nike Class B common stock declined by $14.49 per share, nearly 12%, closing at $108.04 per share on December 22, 2023.
Finally, on March 21, 2024, Nike unveiled its third quarter fiscal year 2024 financial results, which revealed a 3% year-over-year revenue decline in its Europe, Middle East, and Africa segment, a similar decline in Nike Digital revenue, and minimal quarterly revenue growth of approximately 0.4% year-over-year in Nike Direct. During the concurrent investor earnings call, CFO Friend indicated prudent planning for low single-digit revenue decline in the first half of fiscal year 2025, driven by strategic shifts in Nike's product portfolio towards innovation and new offerings. In response to this update, Nike Class B common stock fell by $6.96 per share, nearly 7%, closing at $93.86 per share on March 22, 2024.
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The Portnoy Law Firm represents investors in pursuing claims against caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
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