Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Nike, Inc. (“Nike” or the “Company”) (NYSE: NKE) Class B common stock between March 19, 2021 and March 21, 2024, inclusive (the “Class Period”). Nike investors have until August 19, 2024 to file a lead plaintiff motion.

Investors suffering losses on their Nike investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.

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.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Nike’s direct-to-consumer strategy was unable to generate sustainable revenue growth; (2) Nike’s purported competitive advantages were unable to protect the Company from intense competitive pressures after NIKE largely disengaged from many of its wholesale and retail partners to focus on the Company’s direct-to-consumer strategy; and (3) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

If you purchased Nike Class B common stock, 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 Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847 or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240628439743/en/