Shares of Nike Inc (NYSE:NKE) are suffering a steep, Friday morning slide of more than 7%, trading at $32.57 after the company posted a fiscal first-quarter earnings that missed revenue estimates and revealed layoff plans. A weak revenue outlook is also adding weight, while investors brush off the retailer's modest earnings beat of 48 cents per share.
For much of this calendar year, Nike stock has been trading at 13-year lows as the company struggles to fight its competition and maintain a consumer base. Last month, the footwear maker lost its sponsorship of soccer star Kylian Mbappe, as he headed to rival On Holding (ONON).
Unsurprisingly, a slew of analysts have chimed in with price-target cuts, the lowest from BMO to $25 from $30. More bear notes could be on the way, too with the 12-month average price target of $41.89 coming in at a 29% premium to Thursday night's close.
Short sellers remain firmly in control, with 7.3% of the stock's float now sold short. Short interest rose 24.5% during the past two reporting periods, and it would take roughly three days for shorts to buy back their bearish bets.
