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It hasn’t been an easy year for sportswear giant Nike (NKE). Once a blue-chip portfolio staple, the stock has increasingly become a sore spot for investors. Shares are hovering near their lowest levels since 2014, while Wall Street analysts continue to slash earnings estimates and price targets. The pressure is coming from multiple fronts. Persistent inflation has squeezed consumers, prompting pullbacks in discretionary spending, including apparel and footwear.
China, meanwhile, has turned into another major headache for global brands. Nike’s revenue in the country plunged 12% in the company’s latest quarter as Chinese-based brands continued to win favor with local consumers. Together, these headwinds could make Nike’s recovery even more difficult, even if the company executes well. Nike will get another opportunity to prove that its turnaround is gaining traction when it reports first-quarter fiscal 2027 earnings after the market closes on Thursday, Oct. 1.
