Nike Shares Drop to 12-Year Low as China Slump and Product Overhaul Delay Recovery

Nike shares dropped 8 per cent to 32.22 dollars on Friday. The drop followed deeper projected sales declines through 2028 and another round of job cuts.

The stock now trades at its lowest level in 12 years. It is down more than 80 per cent from its 2021 peak of about 175 dollars. Earnings and market value have both halved since chief executive Elliott Hill came out of retirement in October 2024 to lead a corporate turnaround.

Delayed savings and revenue pressures

Management disclosed that financial benefits from its current restructuring program will not flow through until fiscal 2029 and 2030. That extended timeline forces the company to absorb lower revenue across wholesale partners and direct-to-consumer storefronts. Working through excess stock remains a hurdle.

Three core segments continue to drag on performance: classic sportswear, the Jordan brand, and the Greater China business. Together, these categories generate more than half of Nike’s total revenue. Any recovery depends on stabilizing demand in those lines.

Wholesale friction across Asian retail corridors

For department store operators and multibrand sneaker retailers across Asia, the slow recovery alters floor plans. Retailers previously relied on high-margin Jordan releases and volume lifestyle sneakers. Many have reallocated shelf space to competitors that offer clearer product roadmaps and faster inventory turns.

Nike previously cut back wholesale allocations to chase higher digital margins, a decision that damaged long-term relationships with Asian distributors. Hill has worked to restore wholesale supply agreements over the past two years. Still, retail partners are no longer guaranteeing premium display real estate without stronger consumer pull.

Discounting risks in mainland China

In mainland China, consumer spending has shifted toward value. That shift forced Nike to clear discounted inventory across digital platforms and factory outlets. Heavy promotions eroded brand equity in tier-one and tier-two cities, where local sportswear brands and specialized performance labels have gained market share.

RBC Capital Markets analyst Piral Dadhania noted that revenue pressure is unlikely to ease quickly. “Things are going to get worse before they get better,” Dadhania said.

The steps that led to the slump

Strategic pivots made earlier in the decade created the current downturn. At the time, the business prioritized direct-to-consumer sales, reduced tie-ups with wholesale distributors, and leaned on lifestyle iterations of existing footwear franchises rather than new athletic performance models. Hill returned to reverse those missteps. He trimmed headcount by 1,400 staff earlier in 2026 and refocused development on core sports.

Investors and retail partners now look to Nike’s upcoming investor day on November 16 and 17. Executive leadership must present a multi-year roadmap detailing product delivery schedules and margin targets for the fiscal year ending in May 2028.