One of the biggest losers in the devastating April 3 stock market session was shoemaking giant Nike (NYSE: NSE).
Between the pre-market and the regular session, NKE shares plunged 14.44% and ended the day trading at $55.58.
The one-session collapse accelerated the shoemaker’s multi-year downtrend and ensured Nike stock is, at press time on April 4, changing hands at lows not seen since 2017 – in as many as eight years.
Why Nike stock collapsed on Thursday
The biggest reason for NKE equity’s sharp plunge is that the company is the most easily identifiable and direct loser of President Donald Trump’s Liberation Day tariffs.
Specifically, the White House announced that a 46% tariff would be levied on goods from Vietnam – the fourth-biggest unveiled on the day – severely endangering Nike’s business.
While many clothes and shoe companies manufacture their goods in Southeast Asia, Nike is somewhat notorious for producing approximately 50% of its footwear in Vietnam.
Lastly, the sportswear giant was especially susceptible to the shock as the impact on its supply chain was as direct as it was easy to comprehend.
For example, though numerous car and technology companies rely on goods from countries that have been heavily tariffed, the overall structure is substantially more byzantine, ensuring investors are not as focused on their selling.
Wall Street reacts to NKE stock’s plunge to eight-year lows
Despite the adverse development, it is interesting to note that Wall Street – at least to the extent it reacted to the new tariffs’ impact on Nike in the initial 24 hours – remains mostly bullish about the shoemaker.
On April 3, RBC simply repeated its April 1 opinion that it is ‘neutral’ on NKE stock. Baird, however, conceded to the negative developments by lowering its price target from $99 to $80, but it kept the ‘outperform’ – ‘buy’ – rating.
Should Baird’s forecasts come true, investors could expect Nike shares to have rallied 43.94% by late 2025 or early 2026.
