Why is Nike stock down again today?

NIKE (NKE -2.93%) shares lost ground in trading on Wednesday. The footwear and apparel company’s share price ended the daily session down 2.9 percent, according to data from S&P Global Market Intelligence.

Nike stock saw another day of stock declines due to information contained in the Foot Lockerits second quarter report and conference call. While Foot Locker actually beat Q2 sales and earnings expectations, the retailer announced moves it will make in 2025 that suggest headwinds for Nike.

Plans to close Foot Locker stores could be a bad sign for Nike

Foot Locker actually offered some pleasant surprises with its second quarter report. While the business posted a non-GAAP (adjusted) loss of $0.05 per share in the quarter, the performance beat the average analyst call for an adjusted loss of $0.07 per share.

The company also returned to annual sales growth. Revenue rose 1.9 percent year over year to $1.9 billion, beating the average Wall Street estimate for sales of $1.89 billion. Same-store sales rose 2.6% annually in the period, beating the average analyst call for category growth of 1%.

However, while Foot Locker delivered sales and earnings, the company announced plans to significantly reduce the number of stores in some Asian and European markets. This is not a promising development for Nike, and the stock is now down about 24% year to date.

Has Nike’s road to a comeback gotten any tougher?

Nike shocked the stock market in June when it issued guidance suggesting the business would post a substantial decline in sales this fiscal year. The company reported a roughly 10% drop in sales in its fiscal first quarter — a period that ends at the end of this month. Full-year sales for fiscal 2025 were expected to fall in the mid-single digits. Now, Foot Locker could issue another bearish signal.

With its Q2 report, Foot Locker announced plans to close its stores and e-commerce operations in South Korea, Denmark, Norway and Sweden. The company anticipates closing 140 stores in Asia and 629 stores in Europe by the middle of next year.

Nike has prioritized its own e-commerce platforms and other direct-to-consumer avenues, but Foot Locker remains a key retail partner for the company. The footwear and apparel giant is facing pressure from smaller competitors including On Holding and Brooks, and the changing landscape of footwear retail could mean the industry giant continues to lose market share and market share.