On October 2, Nike fell 4.1% in after-hours trading to $33.73 per share, with turnover of approximately $84.77 million. The decline was triggered by the company's fiscal Q1 earnings release, in which revenue of $11.21 billion fell short of the consensus estimate of $11.33 billion.

Gross margin came in at 42.8%, a modest improvement from 42.2% in the year-ago period, but failed to offset top-line disappointment. Ahead of the report, bearish sentiment had already reached historic extremes — short interest surged to 87 million shares, up over 58% year-over-year, according to S3 Partners data. Nike was also recently removed from the S&P 100 Index, ending an 18-year tenure as a constituent, while its market capitalization has nearly halved from its all-time high.

Leading into the earnings release, multiple Wall Street firms cut their price targets. Bank of America downgraded Nike to Underperform with a $30 target, while Evercore ISI, Deutsche Bank, and UBS all reduced their targets, citing weak direct-to-consumer trends, China headwinds, and deteriorating global sales momentum.

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