Nike Stock Hits 12-Year Low Amid Sector-Wide Revenue Pressure

Nike's stock price has reached its lowest level in 12 years, plummeting to $38.59.

This decline marks a loss of approximately 78% of the company's value since its peak near $180 in November 2021, amounting to around $200 billion in market capitalization.

The athletic apparel sector has been under pressure due to disappointing revenue expectations from On Holding and weaker guidance from Dick's Sporting Goods.

Nike's direct-to-consumer strategy has damaged relationships with traditional retail partners, allowing competitors like On Holding, Hoka, and New Balance to gain market share.

The company's profitability has taken a hit due to heavy discounting to clear inventory, pushing operating margins down to around 9% from the mid-teens range.