Nike (NKE) shares fell about 4% on Monday, closing at $39.09, their lowest close since September 2014. During the session, the stock traded between $38.90 and $39.42 after finishing Friday at $40.73. The decline extends a prolonged selloff that has erased more than $200 billion in market value since the company's 2021 peak, with shares now down roughly 38% in 2026 and nearly 78% from their November 2021 record high of $179.10. Nike was among the weakest performers in the Dow Jones Industrial Average on Monday.
No new earnings report or major corporate announcement accompanied the latest leg down. Instead, investors are weighing persistent pressures across Nike's business. The company's direct-to-consumer strategy has backfired: Nike Direct revenue fell 6%, brand digital revenue dropped 12%, and digital sales declined 26%, while wholesale revenue rose 6%. For the fiscal fourth quarter, total revenue fell about 1% to $11.0 billion.
Greater China remains a core challenge. Nike's Greater China revenue for fiscal 2026 fell 11% year over year to $5.85 billion, or 13% excluding currency effects. Direct online sales in China dropped 29%, shoe sales fell 14%, and Greater China operating profit declined 20% to $1.28 billion. Local competitors such as Anta Sports and Li-Ning have gained market share, while the premium once attached to U.S. brands in China has faded.
The latest decline was also partly triggered by On Holding's second-quarter revenue miss. The Swiss sportswear maker reported $1.076 billion, below the $1.11 billion forecast, raising concerns about broader demand in the premium sneaker market.
Wall Street sentiment has soured. JPMorgan cut Nike to underweight from neutral and lowered its price target to $40 from $47. Evercore ISI analyst Michael Binetti said there are no hints yet that revenues can turn positive in the foreseeable future. The average 12-month price target stands near $50.66, with the lowest target at $40 and the highest at $75. Nike's next earnings report is scheduled for September 29, 2026. CEO Elliott Hill has been rebuilding wholesale relationships and recently replaced the CFO. A Stocktwits poll found 68% of investors picked Nike over Lululemon as the stronger turnaround bet. Nike carries a forward dividend yield of 4.03% and a P/E ratio near 19.35.
