Why Nike Stock Dipped Again Today

Nike (NKE -2.93%) shares fell on Wednesday. The footwear and apparel company’s share price closed the daily session down 2.9%, according to data from S&P Global Market Intelligence.

Nike shares fell for another day on the back of news Foot LockQ2 Report and Conference Call: While Foot Locker actually beat second-quarter sales and earnings expectations, the retailer announced actions it will take in 2025 that suggest headwinds for Nike.

Foot Locker Store Closure Plans Could Be Bad Omen for Nike

Foot Locker actually delivered a few pleasant surprises in its second-quarter report. While the company reported a non-GAAP (adjusted) loss of $0.05 per share for the quarter, the results beat analysts’ average estimate of an adjusted loss of $0.07 per share.

The company also returned to annual sales growth. Revenue rose 1.9% year over year to $1.9 billion — beating Wall Street’s average sales forecast of $1.89 billion. Same-store sales rose 2.6% annually during the period, beating analysts’ average forecast for category growth of 1%.

However, while Foot Locker delivered above-expectation sales and earnings, the company announced plans to significantly reduce store counts in some Asian and European markets. That’s not a promising development for Nike, and shares are down about 24% since the beginning of the year.

Has Nike’s path to comeback become more difficult?

Nike shocked the stock market in June when it issued guidance suggesting the company would see a significant sales decline this fiscal year. The company had forecast sales would fall by about 10% in its fiscal first quarter — the period that ends at the end of this month. Full-year sales in fiscal 2025 were expected to fall by mid-single digits. Now, Foot Locker could be sending another bearish signal.

In its second-quarter report, Foot Locker announced it plans to close its stores and e-commerce operations in South Korea, Denmark, Norway and Sweden. The company expects to close 140 stores in Asia and 629 stores in Europe by the middle of next year.

Nike is prioritizing its own e-commerce platforms and other direct-to-consumer channels, but Foot Locker remains a key retail partner for the company. The footwear and apparel giant is facing pressure from smaller competitors, including While holding and Brooks, and the changing landscape of footwear retail could mean the industry giant continues to lose awareness and market share.