Nike Shares Plunge 45% On Track for Worst Year Ever

Nike Inc. (NKE) is experiencing one of its most challenging periods as its shares plummet more than 45% this year, on track for the worst annual performance in its history. The decline follows a difficult fiscal first quarter, where weak sales in China and struggling core brands like Sportswear and Jordan contributed to a 5% weekly drop in share price. CEO Elliott Hill acknowledged during the earnings call that the company is taking steps to strengthen its businesses, but recovery will take time.

The company's problems extend beyond the U.S., with Greater China revenue declining 26% year-over-year. Nike is reducing its reliance on high-volume footwear products and focusing on higher-quality digital marketplace experiences in China. Analysts have responded by lowering price targets, with Truist cutting its target to $29 from $42, Williams Training downgrading to a 'Hold' rating with a $30 target, and Evercore ISI slashing its target to $28.

Despite the downturn, retail sentiment on Stocktwits remains 'extremely bullish.' Some users see current levels as strong support, while others predict a resurgence in investor interest. However, NKE stock has crashed 52% in the past twelve months, reflecting broader concerns about the company's turnaround strategy ahead of its investor day in November.