Nike shares hit 12-year low amid revenue concerns and political criticism

Nike shares have reached their lowest intraday level in approximately 12 years, touching a new 52-week low of $39.06. The decline follows a weak revenue report and cautious guidance from competitor On Holding AG, which impacted the broader athletic footwear sector.

U.S. Senator Ted Cruz has renewed his criticism of the sportswear brand, citing the company’s 2019 decision to withdraw a sneaker featuring the Betsy Ross flag. Cruz expressed his disapproval on social media, stating he would no longer purchase Nike products.

Financial analysts at JPMorgan have downgraded Nike’s rating from Neutral to Underweight. The firm warned that the company’s ‘Win Now’ strategic initiatives may risk eroding margins and negatively affecting future earnings.