Market Cap Plummets Over $130B!

The American sportswear giant Nike was once very popular among young people in China, but according to the recent financial report published by Nike: Nike's gross profit margin has plummeted, falling short of market expectations, and the stock price has plummeted, with a market value of over a hundred billion evaporating in a single day.

What is the reason behind this?

Despite the financial report showing that Nike's sales actually increased, the growth was not significant, which is a drop in the ocean compared to the sharp drop in stock price after the report was announced.

As soon as Nike's financial report was released, the stock price of Nike in the U.S. stock market began to react.

Within a day, Nike's stock price dropped from $149.5 billion to $130.4 billion, losing $19 billion, which is equivalent to 130 billion yuan in RMB, causing Nike real heartache.

This financial report data is indeed not good-looking for Nike in the past.

Although there is a 4% growth in revenue, the profit has a negative growth of 22%.

Of course, the report also explains the decline in profits, saying that in order to reduce inventory, the discount strength is relatively large, and the price of logistics and other reasons has risen due to the current epidemic, so the overall profit has declined.

These reasons can indeed lead to a relative decline in profits, but it cannot explain why Nike's stock price fell so much after the release of this financial report.

The reason is that Nike has lost the world's largest market - China.

The Chinese market is continuously shrinking.

Nike was very popular in China before, especially among young people with high consumption.

As a sports brand, Nike's brand positioning in the United States is actually consistent with the positioning of Chinese sports brands in China, serving a wide range of consumers from different classes.

Before, Nike was very popular among young consumers in China, and the price of Nike in China was very high, especially in the category of sports shoes, the price was once called sky-high.

The popularity of Nike in the Chinese market made Nike's financial report very good-looking, and the stock price in the U.S. stock market also rose continuously.

However, Nike did something it shouldn't have done, and last year it publicly