It's been a roller-coaster ride for Nike (NYSE: NKE) shares over the past couple of years. From its peak in November 2021 to its 52-week low in September 2022, the stock dropped more than 50%. But since then, it's up about 44%. During the most recent fiscal quarter (Q3 2022, ended Feb. 28), Nike was able to beat Wall Street expectations on both revenue and diluted earnings per share (EPS).
However, there are some glaring issues hurting the business that investors need to know. Here are three reasons you might want to consider selling Nike's stock, which is down about 4% since that latest earnings report.
In the latest quarter, revenue rose 14% year over year to $12.4 billion. This is wonderful growth, but it comes with a caveat. Diluted EPS of $0.79 during fell 9% in the same period. This means that Nike's operating margin compressed meaningfully in the quarter to 11.4%
Source Fool.com