Nike's after-hours trading plummeted by more than 10%, with the core reason being that profit declines exceeded market expectations.
Revenue did not drop significantly, but cost pressures rose noticeably, especially in raw materials and transportation costs.
Short-term sentiment-driven selling was rapid, but in the long run, Nike's brand strength and channel capabilities remain solid supports. Whether it can recover in the coming quarters depends on the pace of North American consumption recovery.
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