Nike Stock Hits 13-Year Low Amid Persistent Revenue Declines

Nike (NKE) stock has dropped significantly, hitting a 13-year low in October 2026. The decline comes after the company’s Q1 report, which showed a 4% decrease in revenue to $11.2 billion and a 2% drop in earnings per share to $0.48. Sales in Greater China plummeted by 26%, and Nike announced further job cuts, expecting sales and profit to decline more than anticipated. Management forecasts a high single-digit revenue decline for the full fiscal year, with adjusted EPS between $1.15 and $1.35.

The sportswear, China, and Jordan brands, accounting for over half of Nike’s total sales, remain problematic. Sportswear sales fell by low double digits, while Jordan sales dropped by mid-teens. CEO Elliott Hill attributed the decline to oversupplying retro sneakers and announced plans to reduce launches. Despite these challenges, Nike’s performance business grew in the high single digits, with running, football, tennis, and golf categories all seeing double-digit growth.

Investors are growing impatient, as Hill’s return in October 2024 to turn the company around has so far resulted in a halving of Nike’s market value and earnings. The new cost-cutting plan, Pace, aims for $2.5 billion in savings, but most of these savings are expected to materialize in fiscal 2029 and 2030. Analysts remain skeptical, with RBC’s Piral Dadhania suggesting things will worsen before improving, and GlobalData’s Neil Saunders noting that job cuts won’t resolve the brand’s core issues.

Guggenheim’s Simeon Siegel speculated that management wanted to clear out negative news before Investor Day, scheduled for November 16 and 17. Analysts anticipate a clearer strategy for growth and profit during this event. Nike emphasized that its dividend remains a priority, ending the quarter with $8.4 billion in cash and short-term investments. For now, the stock is trading on tangible results rather than promises, with the next big test being Investor Day.