Nike's Stock Loses $200 Billion in Market Value Amid Continued Decline
Nike (NKE) has seen its stock price fall nearly 78% from its November 2021 peak, erasing approximately $200 billion in market value. The decline marks the worst drawdown in Nike's history as a public company and follows years of struggles with declining sales across key markets. The drop is largely attributed to underperformance in Nike Direct, which was once its growth engine but now contributes to falling results due to 7% revenue declines driven by digital sales. In China, the brand faces stiff competition from local rivals like Anta and Li Ning, leading to eight consecutive quarters of declining sales. Nike's strategy includes cutting over 1,000 third-party online storefronts in China starting January 2027 and consolidating sales into its own platforms. Analysts are divided on the long-term impact: while most remain bullish, JPMorgan analyst Matthew Boss downgraded Nike to Underweight due to concerns about earnings estimates being too optimistic.
Tickers: $NKE
Topics: China sales market value decline Nike retail performance