Nike Stock Crashes 15% in Brutal Selloff, Among Worst in Decades

Nike’s latest update was enough to send the stock sharply lower. Nike stock saw a crash of 15% in a single session, even though the firm’s recent quarter itself was not particularly weak. This was a much deeper issue. Slower sales and demand, especially in China, and a challenging global environment are now raising questions about how quickly the turnaround can play out.

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China’s Weakness and Global Disruptions Derail Nike’s Recovery

On paper, the recent quarter held up. Revenue came in around $11.3 billion. Even though this is relatively flat, it was still ahead of expectations. But the focus shifted to something else. Nike’s stock dipped by 15.51% over the past day and is currently priced at $44.63. The stock was trading at a high of $52.92 earlier this week before recording its current drop.

Meanwhile, Nike’s outlook was making the rounds. The firm expects sales to dip in the coming quarter. Declines could even stretch into 2026. A big part of this projection comes from China, where demand still has not picked up. Sales in the region are expected to take a sharper hit next quarter.

Inside the company, there are signs that the recovery is taking longer than expected. CEO Elliot Hill acknowledged the slow pace in a recent internal meeting. He said,

“I’m so tired, and I know you are too, of talking about fixing this business. I want to move to inspiring and driving growth and having fun.”

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Global Conditions Add Pressure

Executives also pointed to a more uncertain environment. CFO Matthew Friend said conditions have become “increasingly dynamic.” He noted that disruptions in the Middle East and rising oil prices could affect both costs and consumer demand. Friend added,

“We could experience unplanned volatility due to the disruption in the Middle East, rising oil prices, and other factors that could impact either input costs or consumer behaviour.”

Higher energy prices can keep inflation high. This could, in turn, have an impact on spending. But he also noted that the current pressure on margins from higher tariffs is expected to ease. He said,

“[Upcoming quarter] to be the final quarter where higher tariffs continue to be a material year-over-year headwind to gross margin”.

Some parts of the business are still doing okay. North America saw some growth and wholesale improved as Nike returned to retail partners. But it was not enough to make up for the slowdown elsewhere, especially in China. Nike is still in the middle of a reset. Some parts of the business are improving, but the overall picture remains uneven.

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