What's Going On With Nike Shares Wednesday?

Author: Dylan Berman | August 28, 2024 01:41pm

Nike, Inc. (NYSE:NKE) shares are moving lower on Wednesday in possible sympathy with Foot Locker (NYSE:FL) and Abercrombie & Fitch Company (NYSE:ANF), which fell after reporting earnings.

What Happened: Both companies reported 2024 fiscal year second quarter earnings before the market opened Wednesday.

Foot Locker: Footlocker reported a loss of 5 cents per share beating analysts estimate of a loss of 7 cents per share and sales of $1.89 billion beating analyst estimates of $1.88 billion. Also, the company reaffirmed its adjusted EPS guidance of $1.50 to $1.70 for the 2024 fiscal year.

Throughout the quarter, Foot Locker opened 5 new stores, however, the company closed 41 stores. Furthermore, the company either remodeled or relocated 14 stores and updated 67 stores to meet new design standards.

Abercrombie: Abercrombie reported sales of $1.13 billion beating analysts estimate of $1.10 billion and adjusted EPS of $2.50 beating analysts estimate of $2.22. In addition, the company anticipates third quarter net sales to grow in the low double digits year over year.

Abercrombie CEO Fran Horowitz said, “The Americas led our performance this quarter with net sales growth of 23% on top of 19% growth last year, along with continued strong results in EMEA with growth of 16%. By brand, Abercrombie brands achieved growth of 26% on top of 26% growth last year, and Hollister continued its sequential acceleration to growth of 17% with better-than-expected summer and back-to-school selling.”

Other companies in the apparel and athletic wear sector, including Under Armour, Inc. (NYSE:UA), are also under pressure following the reports from Foot Locker and Abercrombie.

Related Link: Urban Outfitters Stock Dips: Can a Gen-Z Strategy Boost Sales?

NKE Price Action: At the time of writing, Nike shares are moving 3.31% lower at $82.47, according to data from Benzinga Pro.

Image: Shutterstock/ 2p2play

Posted In: ANF FL NKE UA