BUZZ - S&P downgrades Nike's rating to A, gives a negative outlook due to "long" business recovery prospects; Nike's stock price falls in response.
路透社2026/10/05 14:56October 5th – Sports apparel giant Nike (NKE.N) saw its stock price drop by about 3% in early trading to $32.83. S&P Global downgraded the stock’s rating from “A+” to “A” with a “negative” outlook, stating that the company’s return to profitability will take longer and require more investment than previously expected. Revenue, profits, and cash flow are projected to decline significantly over the next 24 months, with continued pressure in the Chinese market. S&P also noted that changes in executive leadership and the board may weigh on Nike’s stock price. The agency expects the company to face ongoing debt management pressures, with annual cash burn estimated at approximately $1.2 billion over the next two to three years. S&P warned that if Nike fails to make progress in stabilizing its business and regaining profitability, its rating could be further downgraded at any time within the next 12 to 24 months. On Friday, Nike’s stock fell to its lowest point in nearly 13 years after the company predicted a sharp decline in full-year revenue. As of the previous trading day’s close, the stock was down about 49% for the year. (For the convenience of non-English speakers, Reuters has automatically translated its reports into several other languages. As automated translations may have errors or lack desired context, Reuters does not guarantee their accuracy and provides them solely for reader convenience. Reuters accepts no liability for any harm or loss resulting from the use of automated translation.)
October 5 - ** Sportswear giant Nike (NKE.N) shares fell about 3% in early trading to $32.83
** S&P Global downgraded the rating on this stock from “A+” to “A” with a “negative” outlook, saying the company’s (link) turnaround efforts will take longer and require more investment than previously expected
** Revenue, profit, and cash flow are expected to decline sharply over the next 24 months, with ongoing pressure in the China market; management (link) and board changes may also weigh on NKE’s share price
** The company’s debt management is expected to remain under pressure, and annual cash consumption could reach about $1.2 billion each year over the next two to three years
** S&P stated that if Nike does not make progress in stabilizing its business and turning profitable, its rating could be further downgraded at any time within the next 12 to 24 months
** On Friday, after Nike forecast a sharp decline in full-year revenue, its share price fell to near a 13-year low (link)
** As of the previous trading day’s close, the stock had fallen about 49% year-to-date
(To facilitate non-English speakers, Reuters provides automated translations of its reports into several other languages. As automated translations may contain inaccuracies or lack necessary context, Reuters does not guarantee the accuracy of the automated translation text and provides it solely for readers’ convenience. Reuters takes no responsibility for any damage or loss caused by the use of automated translation.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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