Nike (NYSE:NKE) shares were down 11% in early Wednesday trading, reacting to a quarterly earnings report that beat estimates on the surface but delivered a forward outlook that rattled investors. The selloff pushes NKE stock toward levels not seen in years.
The headline numbers looked passable. However, investors sold first and asked questions later, because what management said about the road ahead was far less encouraging than what it reported for the quarter just ended.
The stock is now down 17% year-to-date and 60% over five years. That five-year number is the one that keeps long-term shareholders up at night, and it frames the central question every investor is asking this morning: is Nike a generational buy at these levels, or has the brand structurally lost its edge?
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