Nike Shares Plunge 45 Percent in Worst Year Ever

Nike Inc. (NKE) is experiencing its worst year ever as shares plummet more than 45%, eroding investor confidence in the company’s recovery plan. The decline follows a challenging fiscal first-quarter (Q1) 2027 report, which drove a 5% weekly drop in shares. Analysts have responded by lowering price targets, citing concerns about Nike’s slow turnaround and weakening core brands.

The company’s long-standing dominance in athletic footwear is under pressure, with shares falling to historically low levels compared to the broader U.S. stock market. Nike has lagged behind the S&P 500 on a total-return basis since July 1993. Key segments like Sportswear and Jordan are facing challenges, while the company’s strategy to reduce reliance on high-volume footwear products has added to the pressure.

China remains a major hurdle, with Greater China revenue declining 26% year-over-year. CEO Elliott Hill noted during the Q1 earnings call that the company is taking deliberate steps to strengthen its businesses, but the benefits will take time. Nike is refocusing its digital strategy in China by eliminating distribution through non-aligned channels to reduce deep discounting.

Wall Street has adjusted its outlook, with Truist cutting its price target to $29 from $42, Williams Training downgrading the stock to a ‘Hold’ rating with a $30 target, and Evercore ISI slashing its target to $28. Despite these cuts, retail sentiment on Stocktwits remains ‘extremely bullish,’ with some investors seeing support at current levels and potential buying pressure due to political factors.