Nike Stock Plummets Amid Revenue Declines and Brand Erosion

Nike's stock price has plummeted nearly 49% over the past year, reaching levels not seen in 12 years. The company's revenue flatlined at $46.4B in FY2026, mirroring FY2022 levels, while free cash flow dropped significantly from $6.62B to $2.18B.

The brand erosion is a significant concern for Nike, with its back-to-school popularity plummeting from 92.5% in 2021 to a low of 38.2% in 2025, before recovering slightly to 45.8% in 2026. The company's aggressive push into direct-to-consumer sales has hurt its wholesale relationships, which it is now working to rebuild.

Nike has closed 11 U.S. stores as part of its retail footprint reshaping efforts. New lifestyle products are in the pipeline but won't reach scale until H2 2027. The November 2026 Capital Markets Day will be a crucial event for Nike, where it is expected to lay out a financial framework that could either rebuild or further dent investor confidence.