Nike Stock Plunges to Near-12 Year Low Amid China Struggles

Nike's stock has plummeted to a near-12 year low after dropping nearly 78% from its 2021 peak, shrinking by almost half over the past year. The sports brand's struggles in Greater China and dwindling e-commerce sales have contributed to this decline.

The region was once considered one of Nike's most significant international growth markets, but revenue has declined 13% on a currency-neutral basis. Footwear revenue fell 15%, while Nike Direct revenue dropped 12%. Digital sales plummeted 29%, and comparable-store sales decreased by 6% in the last fiscal year.

The company's recovery has been slower than expected due to intensifying competition, diverging demand, and high inventory levels that have constrained Nike's ability to adjust. To clear out older products, Nike has increased discounts and promotional intensity, which depresses margins and may damage its premium pricing power.

Several analysts have downgraded Nike's ratings, citing concerns about the company's 'Win Now' strategy and potential financial consequences.