Nike (NYSE: NKE) stock has more than doubled over the last year as investors anticipate a strong rebound from the pandemic. But shares retreated after the company reported lower-than-expected revenue growth for the fiscal 2021 third quarter.
Nike reported revenue growth of just 3% year over year, which is not the pace of recovery investors were expecting. In the previous quarter, revenue growth accelerated to 9%, and management’s previous guidance had called for revenue to advance by a low-teens rate for fiscal 2021 (ending in May).
Is Nike losing momentum? Absolutely not. The one thing investors should know is that management is still sticking to its full-year guidance as underlying demand for the Nike brand continues to remain at a high level. Here’s what impacted Nike in the last quarter and why this top sportswear brand remains a compelling growth stock.