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Nike, Inc. (NYSE: NKE)

Case Details

Join The Class Action

This lawsuit is for anyone who acquired Class B stock in Nike, Inc. (NYSE: NKE) from March 19, 2021 through March 21, 2024.

The lawsuit alleges that the Company and certain of its executives violated federal law. Specifically, the lawsuit alleges that, throughout the time period mentioned above, the Company misled investors regarding its financial condition. More specifically, the lawsuit alleges that the Company misled investors by failing to timely inform investors that the Company’s direct to consumer strategy was not producing the sustainable revenue that the Company told investors that it would.

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, the price of the Company’s stock dropped precipitously on unusually heavy trading volume. 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, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume. 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, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume. Finally, 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, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume.

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired Class B stock in Nike, Inc. (NYSE: NKE) from March 19, 2021 through March 21, 2024. you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.