Nike Struggles with 77% Stock Drop Amid China Revenue Decline

Nike's stock has taken a hit, plummeting 77% from its peak in late 2021. The athletic apparel giant is struggling to regain momentum, with revenue in China falling 12% in the last quarter.

The company is combating this trend by rebuilding its wholesale relationships and reducing excess inventory. Nike is also focusing on its key sports, locations, and specific cities.

Despite these efforts, Nike's management anticipates that its gross margin will not reverse course until the second quarter of fiscal 2027. However, the balance sheet remains strong with about $9 billion in cash and short-term investments.