Overview
- Nike shares slipped to fresh 52‑week and multi‑year lows below $40 on Monday, extending a collapse that has wiped roughly three quarters off the stock since 2021.
- Greater China was the biggest drag in fiscal 2026 with sales down about 11% reported and 13% on a currency‑neutral basis while China digital sales fell roughly 29%.
- Reported gross margin improvement in the quarter largely reflected an expected $986 million tariff recovery that lifted EPS by about $0.52 and masked flat underlying margins.
- Channel mix is working against growth because wholesale rose while Nike Direct and digital sales contracted, a dynamic that management says it is trying to rebalance.
- Analysts have cut ratings and targets, insiders disclosed recent share sales, management guided near‑term revenue declines, and markets are watching the September 29 earnings for evidence the turnaround will stick.