Nike (NKE) is set to release its fiscal Q4 earnings tomorrow, June 26, after the close of markets. With a YTD loss of 19.2%, the sneaker giant is heading into the confessional as one of the worst-performing Dow Jones ($DOWI) constituents. Sell-side analysts have also been trimming Nike’s target price ahead of the report to reflect the company’s fundamentals.
The pessimism is not unwarranted, as Nike faces multiple challenges, which its price action aptly backs. The stock’s returns have lagged markets for quite some time now, and it closed in the red for three consecutive years. Currently, NKE trades at just over one-third of its all-time high, which it reached in November 2021. The company’s market cap has fallen below $100 billion, while the plunging stock price has catapulted its dividend yield to 2.6% or roughly twice what an average S&P 500 Index ($SPX) constituent pays.
