Nike stock price continues to move in a descending trend since November last year. During this time, the security has lost more than 40% in price. The company is pressured by inflation and supply chain problems. Consumers are reducing their spending on Nike products as their real income declines.
On June 27, the company released its Q4 and FY 2022 earnings report. Revenue fell 1% year-over-year (but rose 3% in currency-neutral terms) to $12.2 billion, which is $140 million above analysts' expectations. The company's earnings declined 3% to $0.90 per share, but still slightly above analysts' expectations. The fundamentals look stable. However, Nike's biggest challenge is its reliance on China, which accounted for 16% of its total sales in fiscal 2022.
Technically, a bullish divergence between Nike stock price and the DeMarker indicator has formed in the daily chart, which could push the stock price higher towards the trend line. However, the trend is likely to remain descending in the near future.