Nike’s (NKE) stock is down 14% on April 1 and trading at an 11-year low as investors assess the company’s most recent financial results and outlook, notably in China.
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While the sneaker giant managed to post top and bottom line beats with its latest earnings report, the company said that it expects revenue to decline by the low single digits in 2026, with gains in North America offset by continued declines in Greater China.
Nike’s earnings this year are expected to be flat. Despite undertaking a sizable turnaround, China remains a trouble spot for the athletic apparel maker. Revenue in China declined 11% for the most recent quarter, dragged lower by a 27% drop in equipment sales, along with footwear and apparel.
Nike’s Financial Results
China is Nike’s second largest market after the U.S. and Wall Street continues to wait for signs of improvement in the Asian nation of 1.4 billion people. The lack of progress in China continues to weigh on NKE stock.
Beaverton, Oregon-based Nike announced fiscal third-quarter earnings per share of $0.35, which was ahead of the $0.28 forecast among analysts. Revenue in the period totaled $11.28 billion, which topped the $11.24 billion expected on Wall Street. But Nike has seen its sales across China decline in recent years amid a backlash against U.S. brands.
Is NKE Stock a Buy?
Nike’s stock has a consensus Moderate Buy rating among 23 Wall Street analysts. That rating is based on 14 Buy and nine Hold recommendations issued in the last three months. The average NKE price target of $63.85 implies nearly 41% upside from current levels.
