Nike Shares Face Worst Year Ever Amid China and Core Brand Challenges
Nike Inc. (NKE) is experiencing its worst year ever in the stock market, with shares down more than 45% so far in 2026. The company's fiscal first-quarter 2027 results triggered a 5% decline last week, raising concerns about its slow recovery. Analysts have responded by lowering price targets, citing weakness in key markets and businesses. Nike's long-standing dominance in athletic footwear is under pressure as the stock has fallen to historically low levels compared to the broader U.S. market.
The company is facing challenges on multiple fronts. In the U.S., Nike's Sportswear and Jordan businesses are under pressure, while internationally, Greater China revenue declined 26% year-over-year. CEO Elliott Hill acknowledged these struggles during the Q1 earnings call, noting that the company is taking deliberate actions to strengthen its businesses but warning that the benefits will take time to materialize. Nike is also working to clean up its digital marketplace in China by eliminating distribution through non-aligned channels.
Wall Street has reacted cautiously to these developments. Truist cut its price target to $29 from $42, Williams Training downgraded the stock to a 'Hold' rating with a $30 target, and Evercore ISI slashed its target to $28. Evercore pointed to Nike's revenue outlook of a high-single-digit percentage fall through fiscal 2027, making the recovery harder to predict ahead of its investor day in November.
Despite the challenges, retail sentiment on Stocktwits remains 'extremely bullish.' Some users see current levels as strong support and believe that political factors could drive new buying interest. However, NKE stock has crashed 52% in the past twelve months, reflecting the significant downturn the company is facing.