Nike Shares Hit 12-Year Low Amid Strategic Failures

Shares of Nike Inc. fell below $40 on the New York Stock Exchange on August 18, 2026, marking a 12-year low and a nearly 80% decline from its November 2021 peak of $177.51. The crash has erased more than $200 billion in market value, driven by a combination of poor strategic decisions, weak consumer demand, and rising competition from On Holding AG and Deckers Outdoor Corporation's Hoka brand.

Financial performance has deteriorated significantly, with gross margins dropping from 48% to 40% over five years. Fiscal fourth-quarter revenue fell 1% to $11.0 billion, while revenue in Greater China dropped 12%. JPMorgan downgraded the stock to Underweight, warning that the company's current turnaround efforts will likely impact profit and loss statements through fiscal year 2028.

CEO Elliott Hill, who returned to the company in October 2024, has acknowledged the internal difficulty of fixing the business. While some critics attribute the decline to a shift in marketing toward social activism and progressive messaging, analysts point to execution failures and the neglect of wholesale channels under previous leadership. Despite the slump, Nike expects gross margin expansion in the quarter ending in November, aided by a projected $986 million in tariff refunds and a 5% revenue increase in North America for fiscal 2026.