Economy

Nike Shares Decline Sharply After Weak Forecast and China Sales Report

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Dec 20, 2025

THE BARE STORY

Nike's stock fell over 10% on Friday, part of a 13% decline for the week, after the company released its fiscal 2026 second-quarter earnings report. The drop was attributed to a disappointing sales forecast for the next quarter and worsening sales figures in China.

These negative factors overshadowed better-than-expected results for the second quarter, including North American sales that were stronger than anticipated. According to one summary, the company’s performance was also affected by tariffs. The stock price fell below $59 per share on Friday.

On an earnings call, CEO Elliott Hill stated that adjusting to the Chinese market "will take time" and requires a "fresh way of thinking." Hill has been CEO for 14 months, taking over after the previous CEO was fired.

Following the stock's decline, some analysts suggested it was a buying opportunity. Market commentator Jim Cramer called the drop a "big opportunity," citing a pending Supreme Court case on tariffs and his confidence in the CEO. One summary noted that a charitable trust associated with Cramer holds Nike stock. Separately, Jeffries analysts advised clients to "aggressively buy" the shares, and an investing club reiterated its buy-equivalent rating, though both lowered their price targets for the stock to $75, citing the issues in China.

Same Facts. Different Perspectives.

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Perspective by Grok

• Some analysts see the sharp stock drop as a buying opportunity. Following the stock's 13% weekly decline, market commentator Jim Cramer called the situation a "big opportunity." Similarly, analysts at Jeffries advised clients to "aggressively buy" the shares, and an investing club reiterated its buy-equivalent rating, indicating a belief that the stock is now undervalued.

• Recent performance included better-than-expected results in North America. While the forecast was weak, the company’s actual results for the second quarter exceeded expectations. This performance was bolstered by North American sales that were stronger than anticipated, showing resilience in a major market.

• Confidence has been expressed in the company's leadership and potential legal outcomes. One commentator cited confidence in CEO Elliott Hill, who has been in the role for 14 months. The same commentator, whose charitable trust holds the stock, also pointed to a pending Supreme Court case on tariffs as a potential positive catalyst for the company.

How it may affect me

As a U.S. reader:

• Retirement or investment accounts holding the company's stock have decreased in value, with analysts offering conflicting advice on the stock's future prospects.

• The future cost of products is uncertain. Tariffs have affected the company's performance, and a related Supreme Court case is currently pending.

• Despite the stock decline, stronger-than-expected North American sales suggest no immediate changes for U.S. customers regarding product availability or store operations.

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