NEW YORK, NY / ACCESSWIRE / June 21, 2024 / Pomerantz LLP announces that a class action lawsuit has been filed against Nike, Inc. ("Nike" or the "Company") (NYSE:NKE). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
The class action concerns whether Nike and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
You have until August 19, 2024, to ask the Court to appoint you as Lead Plaintiff for the class if you are a shareholder who purchased or otherwise acquired Nike securities during the Class Period. A copy of the Complaint can be obtained at www.pomerantzlaw.com.
[Click here for information about joining the class action]
On June 27, 2022, Nike announced its fourth quarter and full year 2022 financial results after market close. Nike announced that quarterly revenues declined 1% year-over-year and quarterly wholesale revenues declined 7% year-over-year.
On this news, the price of Nike Class B common stock fell $7.72 per share, or nearly 7%, to close at $102.78 per share on June 28, 2022.
Then, on September 29, 2022, Nike reported its first quarter fiscal year 2023 financial results. Nike reported that its net income declined 22% year-over-year and that diluted earnings per share similarly declined 20% year-over-year. Nike also reported a significant reduction in gross margin (down 220 basis points year-over-year) driven by the disposal of excess inventory-which was 44% higher than in the first quarter of 2022.
On this news, the price of Nike Class B common stock fell $12.21 per share, or nearly 13%, to close at $83.12 per share on September 30, 2022.
On December 21, 2023, Nike reported its second quarter fiscal year 2024 financial results and held its related investor earnings call after market close. Matthew Friend, Nike's Executive Vice President and Chief Financial Officer ("CFO"), admitted that Nike's "total retail sales across the marketplace fell short of our expectations" and that Nike's digital platforms lost consumer traffic to competitors because of "higher promotional activity across the marketplace." Given these challenges, Friend revealed that Nike was "adjusting [its] channel growth plans for the remainder of the year" and "identifying opportunities across the company to deliver up to $2 billion in cumulative cost savings over the next 3 years."
On this news, the price of Nike Class B common stock fell $14.49 per share, or nearly 12%, to close at $108.04 per share on December 22, 2023.
Finally, on March 21, 2024, Nike announced its third quarter fiscal year 2024 financial results, revealing 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 scant quarterly revenue growth of approximately 0.4% year-over-year in Nike Direct. On the related investor earnings call held that same day, CFO Friend revealed 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[ed] [its] product portfolio toward newness and innovation."
On this news, the price of Nike Class B common stock fell $6.96 per share, or nearly 7%, to close at $93.86 per share on March 22, 2024.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
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SOURCE: Pomerantz LLP