Shares of NKE drop 3% to $39.47 as China sales fall 11% and tariff gains mask flat underlying profitability.
Nike Inc. shares fell 3% to $39.47, reaching a new 52-week low of $39.42, as weakness in China and margin pressures overshadowed a wholesale rebound. The stock is now 51% below its 52-week high of $80.16, reflecting broader struggles in athletic apparel.
Greater China revenue declined 11% to $5.85 billion, or 12.6% of total sales, with digital sales collapsing 29%. A one-time tariff windfall masked flat underlying margins, pushing Nike’s dividend payout ratio above 100% when adjusted. Competitors Lululemon and On Holding are down 42% and 31% year-to-date, respectively.
The broader retail ETF XRT remains up 5% this year, isolating the selloff to the athletic apparel sector. JPMorgan’s $40 price target is now effectively at market levels, signaling limited near-term upside.