Nike faces stock downgrades and declining China sales

Nike is facing significant financial headwinds, with its stock price dropping approximately 48% over the past year and reaching multi-year lows. Major financial institutions, including Bank of America and JPMorgan, have downgraded the company. Bank of America recently moved Nike to Underperform, slashing its price target from $47 to $30 and forecasting negative sales growth through fiscal 2027.

Regional performance has been mixed. While North American revenue grew by 3% in fiscal Q4 2026, the company has struggled in international markets. Specifically, revenue in Greater China fell by 17% to 20%, and EMEA revenue declined by 6%. For the full fiscal 2026 year, total revenue was $46.4 billion, which was essentially flat on a reported basis.

Despite these challenges, some metrics show signs of stabilization, such as Nike recording its first positive Foot Locker comparable sales in four years. The company is scheduled to report fiscal Q1 2027 earnings on October 1, with options markets anticipating a post-earnings price move of approximately 8.3%.