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Nike Shares Plunge 11% Amid Falling Profits and Sales

12/23/2025

35 8 Full Breakdown

Summary

Story summary

Nike, Inc. (NYSE: NKE) faced a post-earnings selloff as shares closed at $58.71 on December 19, 2025, down 11%.
Nike reported fiscal Q2 2026 revenue of $12.4 billion, up 1%, while net income fell 32%.
Analysts cut price targets as tariffs pressure margins and profitability.
Greater China sales declined for six consecutive quarters after Nike shifted from direct-to-consumer to wholesale channels.

History

Historical Context

In 2020, Nike, Inc. shifted its sales strategy from direct-to-consumer to wholesale channels, coinciding with a 32% drop in net income due to tariffs and changing consumer behaviors. This decline was particularly evident in Greater China, where sales fell for six consecutive quarters, highlighting the challenges global brands face in adapting to evolving market dynamics and consumer preferences.

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Story summary

Nike, Inc. (NYSE: NKE) faced a post-earnings selloff as shares closed at $58.71 on December 19, 2025, down 11%.
Nike reported fiscal Q2 2026 revenue of $12.4 billion, up 1%, while net income fell 32%.
Analysts cut price targets as tariffs pressure margins and profitability.
Greater China sales declined for six consecutive quarters after Nike shifted from direct-to-consumer to wholesale channels.

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