Nike Shares Hit 13-Year Low Amid Sales Slump
Nike is fighting a significant financial downturn as shares hit a 13-year low and sales decline due to weak demand in China.
Shares of Nike are trading near a 13-year low, having fallen roughly 48% over the past year. The company reported fiscal 2026 sales of $46.4 billion, representing a 9% decline from three years ago. This downturn is driven by intense competition and a sharp drop in demand in China, where sales are expected to fall approximately 20% in the current quarter.
CEO Elliott Hill is currently leading a turnaround strategy to fix distribution imbalances and address failures in product innovation. Hill has acknowledged that progress on these initiatives is taking longer than expected.
Financial institutions have responded with stock downgrades. Bank of America analysts cut the stock to Underperform and lowered the price target to $30, while JPMorgan analysts warned that negative sales growth could persist through fiscal 2027. Chase Bank downgraded the stock to Underweight, noting that current initiatives to regain market share could squeeze profit margins.
Despite the slump, the company maintains $9 billion in cash reserves and continues to see growth in the Nike Running category, which some analysts view as a foundation for eventual recovery.
