Nike Shares Face Worst Year Ever as Recovery Struggles Mount

Nike Inc. (NKE) is experiencing its worst year ever in the stock market, with shares plummeting more than 45% since the start of the year. The decline follows a challenging fiscal first-quarter 2027 earnings report, which triggered a 5% drop in shares last week. Analysts have responded by lowering their price targets, reflecting growing concerns about the company's slow recovery.

The company's struggles are multifaceted. Nike's core brands, particularly Sportswear and Jordan, are under pressure as the company shifts away from high-volume, heavily promoted footwear products. Meanwhile, Greater China revenue declined 26% year-over-year, highlighting significant challenges in a key market. CEO Elliott Hill acknowledged these issues during the earnings call, stating that the company is taking deliberate actions to strengthen its businesses but warned that realizing the full benefits will take time.

Nike's strategy includes reducing distribution through channels not aligned with its marketplace strategy, aiming to decrease deep discounting of its brands. The company plans to anchor its digital marketplace in China around fewer, higher-quality experiences through official storefronts on Tmall, JD, and Douyin, as well as through Nike.com and the Nike app.

Despite the downturn, retail sentiment on Stocktwits remains 'extremely bullish.' Some investors see current levels as supportive, with one user suggesting that Nike could be a valuable addition to retirement accounts. Another user speculated that political factors, such as Trump-approved stock status, could create new buying pressure.