Corporate Skate Shoe Giant Faces Trouble as Nike Stock Falls 40% Over the Last Year

For years, Nike has been one of the biggest names in skateboarding.

Nike and Converse Skateboarding — @nike.com

Through Nike SB, the company has invested millions into the scene by signing professional skateboarders, releasing signature shoes, sponsoring contests, supporting skate shops, and helping some of the biggest names in skateboarding build long careers.

Now, the company is dealing with financial challenges after its stock has fallen around 40 percent over the last year, reaching levels not seen since 2014.

Nike recently shared its latest quarterly earnings, reporting revenue of $11 billion. That was down 1 percent compared to the same period last year, with an even larger decline when currency changes were excluded.

While earnings per share looked much stronger than expected, a large part of that increase came from a one time benefit tied to tariff recovery rather than day to day business performance.

Looking ahead, Nike expects revenue during its next quarter to decline by a low to mid single digit percentage. Company executives also said they expect earnings growth to remain relatively flat over the coming quarters without including the tariff recovery benefit.

The company is still trying to improve its business under CEO Elliott Hill. Nike has also made changes to its leadership team, including replacing its chief financial officer as it works to improve overall performance.

Nike’s Decline Ends Here, New Corporate CEO Goes All-In to Fix the Mess — Credit: Nike

Several factors continue to make things difficult for the company.

Consumer spending has remained cautious in many markets, shoe trends continue to change, and competition has become stronger with brands like On gaining more attention from runners and casual sneaker buyers.

Nike's financial performance is worth paying attention to because Nike SB has become one of the biggest financial supporters of professional skateboarding over the last two decades.

The brand has helped fund video projects, tours, events, signature shoe releases, and salaries for many professional skateboarders around the world.

A weaker business does not automatically mean cuts to Nike SB, but large companies often review spending when overall performance slows.

Alexis Sablone x Nike SB Dunk Low x Converse — @nike.com

Many skateboarders remember how other brands reduced team sizes, marketing budgets, or exited skateboarding entirely during difficult financial periods.

At the moment, Nike has not announced any changes to its skateboarding division. The company continues to support its roster of professional skateboarders and release new Nike SB products.

Many within the skateboarding community will likely keep an eye on the company's financial performance over the coming months to see if it has any effect on one of skateboarding's biggest corporate supporters.