Nike Stock Hits 12-Year Low Amid Decline of Nearly 78% from Record High

Nike's stock price has hit a 12-year low, closing at $39.09 on August 17 after touching an intraday low of $38.86. This represents a decline of nearly 78% from its record high of $177.51 in November 2021.

The company is facing challenges such as weaker performance and guidance from competitor On Holding, soft performance in the Chinese market, changing consumer preferences, direct-to-consumer strategies failing to meet expectations, and emerging sportswear brands capturing market share.

Nike's revenue in China has declined 11% year-over-year, excluding exchange rate fluctuations, while its direct-to-consumer digital sales fell 29%, footwear revenue dropped 14%, and operating profit slid 20%. Local sportswear brands such as Anta and Li-Ning are narrowing the gap with international brands.

The technical analysis suggests that Nike's stock is in a long-term downtrend, with a series of lower highs and lower lows forming on its monthly chart. The recent decline has been accompanied by increased trading volume, indicating capital outflows rather than thin market liquidity.