Tariff panic is the default media mode. Even if it involves ignoring certain inconvenient facts.
Nike Stocks Plunge After Donald Trump Announces New Import Tariffs – Complex
Nike Stock Drop Erases $12 Billion in Market Value – WSJ
Nike Stock Tumbles as US Tariffs Hit Asian Suppliers -Investopedia
Nike, Lululemon and Other Consumer Stocks Hit Hard by Trump’s Tariffs – The New York Times
While tariffs no doubt accounted for Nike’s most immediate fall, the company and its stock have been declining for a while now.
Most of this is due to Nike’s business model of direct sales and the trends shifting away from it. I still see people wearing Nikes, but not as many as I used to. In this economy, Nikes are expensive and the company’s monopoly on the sporting goods market is very much a thing of the past.
Let’s look at Nike’s financials from a few weeks ago.
In North America, Nike’s Q3 revenue declined 4% to $4.86 billion. Nike Direct sales fell 10% as Nike Digital dropped 12% and physical stores 6%. Wholesale revenue increased 3%, driven by favorable shipment timing and stronger sales to value-focused retailers, Friend said.
In Europe, the Middle East, and Africa (EMEA), Q3 revenue fell 10% to $2.81 billion. Nike Direct declined 12%, with Nike Digital down 25% and store sales up 9%. Wholesale revenue decreased 3%, Friend said.
In Greater China, Q3 revenue declined 17% to $1.73 billion. Nike Direct fell 11%, with Nike Digital down 20% and store sales down 6%. Wholesale revenue fell 18%. In Q3, Friend said, traffic in the region dropped by double digits and retail sales underperformed expectations.
Meanwhile, in Asia-Pacific and Latin America (APLA), Q3 revenue declined 11% to $1.47 billion. Nike Direct fell 4% as Nike Digital dropped 8% and store sales rose 1%. Wholesale revenue was down 4%
Nike isn’t this great company that’s suddenly taking a massive beating because of tariffs. It’s a troubled company and a debatable value proposition that was already trending downward.
That more complex reality is being concealed in favor of tariff doomer hype which says everything about the media outlets and ‘experts’ doing it.
They’re not being honest because their entire line of argument is not honest. When the truth is on your side, you don’t need to lie.
