Wall Street is turning on Nike as sales slow — and its stock is now at a decade low
NYSE
- Nike stock is falling after issuing a weak sales forecast.
- The sportswear company's sales growth has been flat to negative over the past several quarters.
- Multiple Wall Street analysts downgraded their Nike stock ratings and price targets.
The move: Nike stock fell as much as 14% Wednesday, bringing its year-to-date decline to 29% at intraday lows. Shares are down roughly 66% over the past five years.
The why: The culprit was a bleak revenue forecast for the year ahead. Nike said revenue will decline 2% to 4% in the current quarter, and stay in the low single-digits for the rest of 2026.
Nike also forecasts that sales in China will fall 20% during the current quarter. This comes after reports that Nike is struggling to maintain its popularity in the Chinese market.
Nike CFO Matthew Friend highlighted other potential problems on the Q3 earnings call, including potential disruptions from the war with Iran and rising oil prices, raising the concern that these factors could negatively impact consumer behavior and input costs.
What Wall Street is saying: Multiple Wall Street analysts responded to the guidance forecast by downgrading Nike stock and lowering their price targets.
Bank of America lowered its rating to a neutral from a buy and decreased its price target from $73 to $55, noting that it likely won't be seeing a sales inflection for at least nine months.
"We thought improved performance, product innovation, and
lapping Win Now actions would result in a return to growth in
1Q; instead management has initiated guidance for sales to
remain negative" into 3Q of FY 2027," wrote analyst Lorraine
Hutchinson.
JPMorgan downgraded Nike stock to a neutral rating from overweight, slashing its price target from $86 to $52. Analyst Matthew Boss stated in a note to investors that he expects the company to report declining revenue through the end of the year.
He cited Nike's China sales report as a reason for this less positive stance, highlighting concerns with the company's international presence.
"The balance of the portfolio including International
regions (EMEA, Greater China, and APLA) continue face
actions to reset the marketplace and sell-through results remain
challenged globally, resulting in an elongated timeline for the
model to reach an inflection to revenue growth and a return to
double-digit operating margins," he stated.
Jefferies maintains a buy rating on Nike but stock but lowered its price target from $110 to $90 while also trimming its earnings-per-share forecast for the 2026-2027 year.
Analyst Randal J. Konik noted that while some areas held up well for Nike despite the high tariffs, the company's overall growth still slowed and it likely needs time to reset.
"Importantly, performance categories like running remain strong, but sportswear declined in the [lower double digits] (LLD)%, underscoring why investors should reset expectations for a smoother, faster global recovery," he noted.