Nike shares came under severe selling pressure on Wednesday, 1 April, plunging 14.5% to an intraday low of $45.19 — the lowest level since October 2014 — as investor sentiment was dented after the sportswear giant issued a surprisingly gloomy outlook for current-quarter sales and flagged slower-than-expected progress in its turnaround while announcing its third-quarter performance.
The company’s Chief Executive Officer, Elliott Hill, who took the helm in 2024, said it would take time to revive the iconic sneaker maker. He is now warning of another setback in one of its most critical markets.
Nike has reportedly seen sales decline in China for seven consecutive quarters, and the current one, ending 31 May, could be even worse, with the company projecting a decline of up to 20% in the quarter.
Nike’s sportswear division was another area of concern in the third quarter, with high levels of discounting. The segment recorded double-digit declines.
Overall, the company expects revenue to decline 2% to 4%, weaker than Wall Street’s view for growth of about 2% and remain in the low single-digit decline range for the rest of the calendar year, with gains in North America offset by weakness in Greater China. Earnings are expected to remain flat.
The ongoing conflict in the Middle East has further complicated the company’s turnaround plans, while the retailer continues to struggle to regain traction in China amid intense competition from domestic upstart brands like Anta, whose sales rose 13% in 2025 to about $11.6 billion.
Anta and rival brands such as Li Ning offer similar athletic footwear at significantly lower prices — an advantage over premium-priced foreign brands as China grapples with an economic slowdown. China used to be one of Nike’s biggest growth engines.
On the earnings call, Chief Financial Officer Matthew Friend said the conflict in the Middle East had already disrupted shopping behaviour in parts of Europe, the Middle East, and Africa, leading to softer store traffic and weaker sportswear sales.
Nike Q3 Earnings
Nike reported third-quarter results on Tuesday that beat estimates despite continued weakness in its China business and steep declines at Converse.
The company reported adjusted earnings per share of $0.35, beating Wall Street analyst estimates of $0.31, according to Bloomberg data. Revenue of $11.3 billion was flat year over year, primarily due to declines in EMEA and Greater China, partially offset by growth in North America.
Net income at the Beaverton, Oregon-based company in the third quarter of fiscal 2026 fell 35% to $520 million from $794 million in the year-ago period. Diluted earnings per share dropped to 35 cents from 54 cents.
Net sales in the period tallied $11.3 billion, flat from $11.3 billion on a reported basis and down 3% on a currency-neutral basis.
(With inputs from Reuters and Bloomberg)
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