Nike’s stock is trading close to its 52-week low at $41.85, down sharply from last year’s peak above $80. The decline follows a tough fourth quarter where revenue dropped 1.1% year-over-year, highlighting mounting challenges for the sportswear giant.
In July 2026 alone, Nike shut about a dozen U.S. stores across multiple states including California, Florida, and Texas. This wave of closures is part of Nike’s Global Operations Changes restructuring plan, which aims to cut about 1,400 jobs worldwide and optimize the supply chain. The company is yet to reveal how many more store closures could occur this year.
The fiscal Q4 results revealed a weak performance in key segments: Nike Direct revenue fell 9%, digital sales dropped 12%, and Converse sales plunged 32%. Despite this, Nike managed to beat earnings estimates with an EPS of $0.20 versus the consensus of $0.11.
also Nike plans to stop selling through Chinese distributors Topsports and Pou Sheng starting January, pivoting to its own platforms and major Chinese marketplaces like Tmall and Douyin. This strategic shift caused the stock to dip 2% amid concerns over potential near-term sales pressure in China, a key market for the brand.
CEO Elliot Hill admitted the company is grappling with a challenging macroeconomic environment and waning discretionary spending, contributing to the underperformance. Wall Street remains cautious, assigning an average “Hold” rating with a price target well above the current share price.
Wall Street’s cautious stance reflects broader market uncertainties that are pressuring consumer brands. Nike’s ongoing restructuring includes closing technology hubs and ending its Fitness Studios venture, signaling a broad reset beyond just retail locations.
