The apparel retailer expects sales to decline in the fiscal fourth quarter
Brushing off a fiscal third-quarter earnings and revenue beat, Nike Inc (NYSE:NKE) was last seen down 7.7% to trade at $66.30, after saying it expects sales to decline sharply in the fiscal fourth quarter due to restructuring efforts, lackluster consumer confidence, as well as tariffs. At least 10 firms slashed their price targets in response, including J.P. Morgan Securities to $64 from $73.
NKE is now pacing for its fourth-straight daily loss and worst single-day percentage drop since June. The shares are extending a 34.2% year-over-year deficit, and earlier slipped to a nearly five-year low of $65.18.
Options traders are chiming in, with 108,000 calls and 98,000 puts exchanged so far today, which is 5 times the volume typically seen at this point. The most popular contract by far is the March 65 put, but new positions are being sold to open at the 66 put in that series, with both expiring after today's close.
Nike stock's 10-day put/call volume ratio over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands in the 95th percentile of its annual range. This indicates short-term options traders lean bearish.