NKE stock falls 43% over the past year amid China sales decline and restructuring challenges under new leadership.
Nike (NKE) shares have plunged to their lowest level in over 11 years, down 36% year-to-date and 43% over the past 12 months. The decline reflects investor concerns ahead of Tuesday’s fiscal fourth-quarter earnings report, which follows a disappointing prior quarter marked by weak guidance and operational struggles.
The company faces pressure from a 10% drop in China sales, including a 21% decline in digital and a 13% fall in wholesale. Guidance for the current quarter projects a 2% to 4% sales decline and gross margin contraction of 25 to 75 basis points. Analysts warn of further downside without a shift in consumer demand or innovation.
Competition from Adidas (ADS.DE) and On Holding (ONON) has intensified as Nike undergoes restructuring under CEO Elliott Hill. The stock’s performance underscores broader challenges in the retail sector, particularly in key markets like China.