Nike Stock: Shares Hit Five-Year Low Amid Global Challenges

Nike's stock plummeted to its lowest level since March 2020, falling below $66 on Friday and dropping the company's market capitalization under $100 billion for the first time in four years. This dramatic 7% single-day decline follows a recent profit warning, with management forecasting a steeper revenue drop in the coming quarter than initially projected. Particularly concerning for investors is the 17% collapse in quarterly revenue from the crucial Chinese market. The sportswear giant has now lost 5% of its value since the beginning of the year, following a steep 30% decline in the previous year. Currently, the stock trades more than 52% below its 52-week high of $101.90 recorded in March 2024.

Long Road to Recovery Under New Leadership

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Sollten Anleger sofort verkaufen? Oder lohnt sich doch der Einstieg bei Nike?

New CEO Elliott Hill, who took the helm in October, faces formidable challenges implementing his "Win Now" strategy, which includes strengthened presence in key cities like Shanghai and Beijing. CFO Matthew Friend has tempered expectations, indicating that clearing older inventory will take "multiple quarters" and require margin-squeezing discounts. The company is shifting focus toward sports categories like running, basketball, and soccer while reallocating marketing resources from digital ads to broader sports campaigns. Analysts remain pessimistic, with some predicting the earliest turnaround point won't arrive until the second half of fiscal 2026. TD Cowen has dramatically reduced its price target by $10 to $65.