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NKE.US
id: 1264

Nike (NKE) Sales Strategy Problems Case

D. Oregon
Court
3:24-cv-00974
Case number
19 Mar 2021
Class period Start
21 Mar 2024
Class period End
19 Aug 2024
Lead Plaintiff motion deadline
  • $NKE stockholder filed a claim vs. Nike for hiding problems with its sales strategy and strong competition.
  • After disappointing financial results on June 27, 2022, $NKE fell nearly 7%.
  • Nike investors can join this case to be notified about potential recovery.
Case Details:

On June 27, 2022, Nike reported a drop in revenue and wholesale sales due to inventory issues in China and high shipping costs.

This caused $NKE to fall nearly 7%.

On December 21, 2023, Nike announced disappointing Q2 sales with only 1% growth, and lower-than-expected sales in North America and Europe.

To address the strong competition Nike planned a $2B cost-saving strategy, which included reducing operational costs and staff.

This news caused $NKE to drop nearly 12%.

Based on these events, a $NKE stockholder filed a claim against Nike and its leaders, accusing them of the following:
  • Nike's sales strategy failed to generate continuous sales growth.
  • The company struggled with intense competition after reducing wholesale and retail partnerships to focus on direct sales.
Considering all the representations, investors have reasons to suspect that Nike hid problems with its direct-to-consumer strategy and the impact of strong competition.
Case Status
Lead Plaintiff Submission
Alleged Offence
Misleading Statements
Financial Misrepresentation
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
27 June 2022
Filing date
20 June 2024
Lead Plaintiff Deadline
19 August 2024
Judge
Adrienne Nelson
Collecting participants…

Nike Inc

NIKE, Inc., together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, accessories, and services worldwide. The company provides athletic and casua...

    Ticker
    NKE.US
    ISIN
    US6541061031
    CIK
    320187
    Sector
    Consumer Cyclical
    Industry
    Footwear & Accessories
    Country
    USA
    Address
    One Bowerman Drive, Beaverton, OR, United States, 97005-6453