The Law Offices of Frank R. Cruz Announces Investigation of Nike, Inc. (NKE) on Behalf of Investors

Business Wire 25-Jun-2024 8:18 PM

The Law Offices of Frank R. Cruz announces an investigation of Nike, Inc. ("Nike" or the "Company") (NYSE:NKE) on behalf of investors concerning the Company's possible violations of federal securities laws.

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On June 27, 2022, Nike released its fourth quarter and full year 2022 financial results, disclosing that quarterly revenues had declined 1% year-over-year and quarterly wholesale revenues declined 7% year-over-year. On this news, Nike's stock price fell $7.72, or 7%, to close at $102.78 per share on June 28, 2022, thereby injuring investors.

Then, on September 29, 2022, Nike released its first quarter 2023 financial results, reporting a net income decline of 22% year-over-year and diluted earnings per share decline of 20% year-over-year. Additionally, the Company reported a significant reduction in gross margin driven by the disposal of excess inventory. On this news, Nike's stock price fell $12.21, or 12.8%, to close at $83.12 per share on September 30, 2022.

Then, on December 21, 2023, Nike released its second quarter 2024 financial results and stated that "total retail sales across the marketplace fell short of [the Company's] expectations," and that Nike's digital platforms lost consumer traffic to competitors because of "higher promotional activity across the marketplace." On this news, Nike's stock price fell $14.49, or 11.8%, to close at $108.04 per share on December 22, 2023.

Then, on March 21, 2024, Nike released its third quarter 2024 financial results, reporting a 3% year-over-year decline in revenue in its Europe, Middle East, and Africa segment, a 3% year-over-year decline in Nike Digital revenue, and a mere 0.4% year-over-year quarterly revenue growth in Nike Direct. The Company also stated that Nike was "prudently planning for revenue in the first half of the fiscal year [2025] to be down low single digits" as the Company "shift[s its] product portfolio toward newness and innovation." On this news, Nike's stock price fell $6.96, or 6.9%, to close at $93.86 per share on March 22, 2024, thereby injuring investors further.

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If you purchased Nike securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 2121 Avenue of the Stars, Suite 800, Century City, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.

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