Nike’s Recovery Stalls as Geopolitical Headwinds and China Weakness Trigger 15% Stock Slide

Nike shares fell 15.5% after the company warned of a 20% sales drop in China and disruption from the Middle East conflict, testing CEO Elliott Hill’s recovery plan.

By: AXL Media

Published: Apr 2, 2026, 4:14 AM EDT

Source: Reuters

A Decade Low on Wall Street

Nike (NKE.N) experienced a brutal trading session on Wednesday, with shares slumping 15.5% to close at $44.63. This represents the lowest valuation for the company in over ten years. The sell-off was triggered by a grim third-quarter earnings report where management signaled a steep decline in current-quarter revenue. Since its record high of $179.10 in November 2021, the stock has now retracted nearly 71%, significantly lagging behind both the S&P 500 and its primary rival, Adidas.

The China Crisis: Eight Straight Quarters of Decline

The most pressing headwind remains the Chinese market, where Nike is on pace for its eighth consecutive quarterly drop.

Sales Forecast: Management warned of a 20% decline in China sales for the upcoming quarter.

Local Competition: Domestic Chinese brands like Anta and Li Ning continue to erode Nike’s market share, leveraging deeper cultural connections and more agile supply chains.