Nike Stock Plummets 79% From Peak Amid Growth Struggles

Nike Inc. has seen its stock price drop approximately 79% from its valuation peak and 34% over the last decade. The decline follows a series of struggling growth strategies, most notably in China, where revenue in the Greater China segment fell 11% year-over-year last quarter as domestic brands gained market share.

In the U.S. and Europe, the company's transition to a direct-to-consumer sales model has weakened its relationships with retail partners, creating openings for competitors to capture more of the market. These strategic missteps have eroded investor confidence in the company's long-term growth trajectory.

Despite the stock collapse, the company remains profitable and maintains a stable balance sheet with $9 billion in cash against $11 billion in debt. Nike has continued to increase its payouts, extending a 24-year streak of annual growth. This combination of a falling share price and rising payouts has pushed the stock's dividend yield to roughly 4.5%, the highest level in the company's history.