Nike (NYSE: NKE) did not score a slam dunk last year. The top maker of athletic gear saw its shares slide almost 30%. Can we blame the bear market for the performance? Maybe a bit. It's true that some investors avoided stocks linked to consumer spending.
But the main reason for Nike's decline was that economic factors have been hurting earnings. Rising inflation, supply chain problems, and negative currency exchanges represented headwinds in 2022. Now, the big question is: Will Nike recover in 2023? Or should we expect this losing streak to continue? Let's find out.
First, let's talk about what went wrong for Nike last year. Higher inflation meant Nike paid more for most of its operations last year, such as running its stores and transporting goods.
Source Fool.com