Nike (NYSE: NKE) shareholders were seeing red on Friday morning. The stock was down by 4% as of noon ET compared to a 0.2% drop in the wider market, according to data provided by S&P Global Market Intelligence. That decline added to a tough period for shareholders in recent months. The footwear giant is down 20% in the past year, while the S 500 has soared 21%.

Friday's decline was sparked by news that Nike is laying off part of its workforce, potentially reflecting further demand weakness ahead.

When Nike delivered its fiscal 2024 second-quarter results in December, management warned investors that demand was already decelerating heading into the holiday shopping season. The stock fell at the time as management projected a "softer second-half revenue outlook" for the final six months of its fiscal 2024. The company also reported a 1% sales decline in its fiscal Q2 (which ended Nov. 30).

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Source Fool.com