Nike Inc. shares tumbled more than 14% Wednesday, plunging as low as $45.19 intraday after the athletic giant issued a disappointing sales forecast for the current quarter despite beating Wall Street expectations for its fiscal third quarter.
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The stock traded around $45.28 midday, down roughly $7.57 or 14.32% from Tuesday’s close, on heavy volume exceeding 49 million shares in the first hours of trading. The sharp decline pushed Nike shares to levels not seen in nearly nine years and extended year-to-date losses to about 29%, with the stock now down roughly 66% over the past five years.
Investors reacted harshly to Nike’s projection that revenue in the fiscal fourth quarter ending May 2026 would fall 2% to 4%, missing consensus estimates that called for a modest 1.9% increase. Executives also flagged an expected 20% sales drop in the key China market during the period, compounding concerns about the pace of the company’s ongoing turnaround under CEO Elliott Hill.
“This quarter we took meaningful actions to improve the health and quality of our business,” Chief Financial Officer Matt Friend said on the earnings call Tuesday. “We delivered third-quarter results in line with our expectations, and our teams continue to execute with discipline.” Yet the forward-looking comments overshadowed the beat, sending the stock sharply lower in after-hours trading Tuesday and accelerating the sell-off Wednesday.
Q3 Results: Beat on Top and Bottom Lines, But Margins Under Pressure
For the quarter ended Feb. 28, Nike reported revenue of $11.3 billion, flat on a reported basis and down 3% on a currency-neutral basis, slightly ahead of the $11.24 billion Wall Street anticipated. Earnings per share came in at 35 cents, topping the 28-to-30-cent consensus forecast despite a 35% year-over-year decline. Net income fell 35% to about $500 million.
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Gross margin contracted 130 basis points to 40.2%, hurt in part by 300 basis points of higher tariffs in North America. Nike Direct sales declined 7%, with digital down 9% and stores down 5%, while wholesale edged up 1%. Running remained a bright spot, helping offset softness elsewhere.
The company highlighted progress on its “Win Now” actions, including marketplace cleanup by pulling some “unhealthy” classic footwear styles — a move that created roughly a five-percentage-point headwind to revenue. Executives said they aim to complete these efforts by year-end to set up stronger growth ahead.
Challenges Mount: China Weakness, Tariffs and Slow Recovery
Nike’s struggles in China have become a major drag. The world’s second-largest market for the brand faces intense local competition, shifting consumer preferences and broader economic softness. The projected 20% decline in the current quarter underscores how quickly conditions have deteriorated there.
Tariffs added another layer of pain. Higher duties on imports from key manufacturing countries like Vietnam, Indonesia and China squeezed margins and raised costs by hundreds of millions of dollars. Broader geopolitical tensions and potential reciprocal tariffs announced earlier in the year have kept pressure on the supply chain.
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The turnaround story, which gained traction when Hill returned as CEO in late 2024, has taken longer than many hoped. Nike has focused on elevating product innovation, streamlining inventory, reducing reliance on heavy promotions and strengthening its direct-to-consumer channels. While these steps have improved brand health in some areas, revenue has remained flat to slightly down for multiple quarters.
Analysts noted the guidance reset signals the recovery could stretch well into 2027 or beyond. “The deliberate actions to clean up the business are necessary but are clearly weighing on near-term results,” one retail watcher said. Wall Street consensus price targets still sit well above current levels — around $75 on average — but several firms have grown more cautious in recent weeks.
Market Reaction and Investor Sentiment
The 14% drop Wednesday marked one of Nike’s worst single-day performances in years and amplified frustration among long-term holders. The stock has now declined for four straight years, raising questions about whether 2026 will finally mark an inflection point.
Some value-oriented investors viewed the sell-off as an opportunity, pointing to Nike’s still-dominant brand, massive global reach and consistent dividend — recently declared at 41 cents per share, payable April 1. The forward price-to-earnings ratio hovers in the low 20s, below historical averages for the company.
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Others remained wary. “Investors are losing patience with the turnaround timeline,” a portfolio manager told reporters. “Beats on the quarter are nice, but without clearer signs of accelerating growth, the stock will stay under pressure.”
Social media and trading forums lit up with debate. Posts ranged from calls to buy the dip to warnings that Nike could test even lower levels if macro conditions worsen. Options activity showed elevated implied volatility, reflecting uncertainty heading into the rest of the year.
Broader Industry Context
Nike’s woes reflect challenges facing much of the athletic apparel sector. Competitors like Adidas and Under Armour have also navigated inventory gluts, shifting fashion trends away from bulky sneakers and rising costs. Consumers, particularly younger buyers, have grown more selective amid inflation fatigue and economic uncertainty.
At the same time, Nike retains significant advantages: unparalleled marketing muscle, deep athlete partnerships and a pipeline of innovation that includes advanced footwear technology and sustainability initiatives. Running and basketball categories continue to show resilience, while the company invests in women’s products and lifestyle extensions.
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Executives expressed confidence that once the “Win Now” cleanup concludes, Nike can return to low-single-digit to mid-single-digit growth with expanding margins. Full-year 2026 guidance remains muted, however, with revenue expected to stay in the low single digits at best.
What’s Next for Nike
Attention now turns to execution in the fourth quarter and updates on the “Win Now” progress. Nike plans to provide more color on its long-term strategy in coming months, including potential new product launches and marketing campaigns aimed at reigniting consumer excitement.
For investors, key questions include:
How quickly can China stabilize?
Will tariff impacts ease or worsen under evolving trade policies?
Can gross margins rebound as inventory normalizes and promotional activity eases?
Will direct-to-consumer momentum return once wholesale channels stabilize?
Retail analysts recommend monitoring same-store sales trends, inventory levels and regional breakdowns in future reports. Dividend yield has risen with the stock’s decline, offering some income support for patient holders.
Nike remains headquartered in Beaverton, Oregon, with operations spanning design, manufacturing partnerships and retail worldwide. The company employs tens of thousands and sponsors countless athletes and teams globally.
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As trading continued Wednesday, the sell-off appeared broad-based with no major rebound in sight. Volume stayed elevated as traders digested the implications for the rest of 2026.
Whether this marks a capitulation low or another leg down will depend on Nike’s ability to translate operational improvements into visible top-line momentum. For now, the iconic swoosh faces a tough stretch as it fights to restore investor confidence in its comeback story.
A Nike logo is displayed at a Nike store in Austin, Texas, Feb. 5, 2026.
Brandon Bell | Getty Images
Shares of Nike fell in extended trading Tuesday after the retailer warned sales will fall for the rest of the calendar year, led by an expected 20% decline in its key China market during the current quarter.
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Chief Financial Officer Matt Friend said during the company’s earnings call that Nike expects sales for its current fiscal fourth quarter to drop between 2% and 4%, compared with Wall Street estimates of a 1.9% increase, according to LSEG.
For the duration of the calendar year, Friend said, the company expects sales to fall by a low single-digit percentage, led by growth in North America and offset by declines in China. That outlook wasn’t comparable to estimates.
Nike beat expectations across the business on both the top and bottom lines for its fiscal third quarter, but its guidance left investors with more questions about how long its turnaround will take. Friend also cautioned that Nike’s guidance was based off of where the global economic picture stands today — and it could change given recent geopolitical volatility.
“We also recognize that the environment around us has become increasingly dynamic, and we could experience unplanned volatility due to the disruption in the Middle East, rising oil prices and other factors that could impact either input costs or consumer behavior,” said Friend. “We are focused on what we can control.”
Shares fell more than 8% in extended trading.
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Here’s how the world’s largest sneaker company did for its fiscal third quarter, compared with estimates from analysts polled by LSEG:
Earnings per share: 35 cents vs. 28 cents expected
Revenue: $11.28 billion vs. $11.24 billion expected
The company’s reported net income for the three-month period that ended Feb. 28 was $520 million, or 35 cents per share. That’s a 35% decline from $794 million, or 54 cents per share, a year earlier. That plunge came as Nike’s gross profit margin slid 1.3 percentage points to 40.2%, “primarily due to higher tariffs in North America,” the company said.
Sales were flat at $11.28 billion, compared to $11.27 billion last year.
While Nike beat expectations on the top and bottom lines, it posted a mixed picture regionally. Nike’s largest market of North America continued to show steady growth, as revenue climbed 3% to $5.03 billion, but that was just shy of Wall Street’s expectations of $5.04 billion, according to StreetAccount.
Meanwhile, Nike’s Greater China market continued to shrink, with revenue down 7% to $1.62 billion during the quarter. Still, that total beat analyst estimates of $1.50 billion, according to StreetAccount.
Nike is continuing to work through a colossal turnaround under CEO Elliott Hill. About a year and a half into his tenure, Hill has made strides in repairing parts of the business, but has been clear that it’ll take time for the entire company to improve given the retailer’s scale and complexity.
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He reiterated that expectation on Tuesday, saying in a news release that “the pace of progress is different across the portfolio.”
“The areas we prioritized first continue to drive momentum,” Hill said. “The work is not finished, but the direction is clear, our teams are moving with focus and urgency, and our foundation is getting even stronger to build the future of NIKE.”
Friend said Nike’s turnaround efforts “will continue to impact results over the balance of the calendar year.”
The group’s Frankfurt-listed shares plummeted 8.7% at the open in Europe on Wednesday.
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Nike’s recovery was already coming at a tough time as a global trade war dented its efforts to improve profitability and drive sales from inflation-weary shoppers. But now the athletic company will have to contend with a new war in the Middle East that’s already led to rising gas prices and is expected to send consumer prices even higher, which could push shoppers to cut back on nice-to-haves like new clothes and shoes to save money elsewhere.
“We continue to be encouraged by the momentum in North America. We’ve got a strong order book for summer,” Friend said. “We’re seeing positive signs and sell through. We’re not seeing a consumer reaction to what’s going on in the Middle East at this point in time, in North America.”
Hill has focused in part on revitalizing Nike’s business with wholesale partners as opposed to direct sales on its website and in stores. Wholesale revenue climbed 5% to $6.5 billion.
More than three quarters of UK businesses are already feeling the impact of the Middle East conflict, as rising energy costs and supply chain disruption begin to feed through into operations, yet confidence at the firm level remains notably resilient.
New research from Barclays, based on a survey of more than 500 business leaders, shows that 66 per cent of companies are experiencing pressure from higher fuel and energy prices, while half report moderate to significant disruption to supply chains.
The findings highlight the speed at which geopolitical instability is affecting day-to-day business activity, with shipping and logistics costs also rising for 43 per cent of firms, adding further strain to margins.
Companies are already responding by adjusting operations and cutting costs. Around 37 per cent have taken steps to reduce energy usage or improve efficiency across their supply chains, while nearly a third have increased prices to offset rising expenses.
Other measures include reducing discretionary spending and tightening overall cost control, with many firms expecting to intensify these actions over the coming months. More than a third are planning further price increases, signalling that cost pressures are likely to continue feeding through to consumers.
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The data suggests that while businesses are adapting quickly, the cumulative effect of higher costs and uncertainty is beginning to reshape decision-making across sectors.
Access to finance is emerging as a key factor in maintaining resilience. Barclays’ research shows that 41 per cent of businesses see support with cashflow management as essential, while 39 per cent highlight the importance of working capital and short-term credit.
Existing cash reserves are also playing a crucial role, with more than 80 per cent of firms identifying them as vital in navigating current conditions. Trade finance and cross-border payment solutions are similarly viewed as important tools for managing disruption in international markets.
Abdul Qureshi, head of business banking at Barclays, said the current environment presents a “convergence of pressures” for UK firms.
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“For SMEs, dependable cash flow and access to working capital are increasingly important, not only to keep operations running, but to safeguard future growth plans,” he said.
The impact of rising costs is already being reflected in consumer spending patterns. Barclays data shows fuel spending rose by nearly 11 per cent year-on-year at the onset of the conflict, driven by higher prices and demand.
At the same time, discretionary spending is beginning to soften, with spending on holidays and travel falling by almost 8 per cent as households adopt a more cautious approach to their finances.
This shift in consumer behaviour is likely to create additional headwinds for businesses, particularly those reliant on non-essential spending.
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Despite these challenges, the research reveals a striking divergence between business-level confidence and broader economic sentiment.
While 78 per cent of firms remain confident in their own prospects and 74 per cent are optimistic about their sector, confidence in the wider economy is significantly weaker. Fewer than half of respondents expressed confidence in the UK economy, with even lower levels for the global outlook.
This suggests that while businesses believe they can manage current pressures internally, there is growing concern about the external environment and its longer-term implications.
Most business leaders expect geopolitical uncertainty to weigh on investment and growth plans over the next year, although the majority anticipate only a moderate impact. A smaller proportion, around one in ten, foresee a significant constraint on their operations.
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Matt Hammerstein, chief executive of Barclays UK Corporate Bank, said firms are being forced to balance immediate challenges with long-term planning.
“Businesses are having to manage disruption today while remaining ready to invest and grow when conditions improve,” he said.
The findings paint a picture of an economy under pressure but not yet in retreat. UK businesses are adapting to rising costs and uncertainty, drawing on cash reserves and financial support to maintain stability.
However, the persistence of energy price volatility and geopolitical risk means the coming months will be critical.
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While confidence at the firm level remains strong, the widening gap with broader economic sentiment suggests that resilience may be tested further if external conditions deteriorate, particularly if cost pressures intensify or demand weakens.
Amy Ingham
Amy is a newly qualified journalist specialising in business journalism at Business Matters with responsibility for news content for what is now the UK’s largest print and online source of current business news.
‘I’m proud to take on this role at such an important time for the organisation’
Wayne Jones OBE, the new chair of Greater Manchester Chamber of Commerce(Image: Greater Manchester Chamber of Commerce)
Greater Manchester Chamber of Commerce has appointed past president Wayne Jones OBE as its new chair in a move it says “marks a new chapter for the organisation, but one rooted firmly in continuity”.
The Chamber was sold out of administration last year, with directors vowing a “seamless transition” of its business support services. Now Mr Jones, who has been a Chamber board member for more than a decade, is to succeed Phil Cusack as chair.
Mr Jones serves on the Liverpool-Manchester Railway Partnership Board and was in 2016 named a Global Ambassador for Manchester. He was previously a member of the executive board of MAN Energy (now Everllence).
In a statement, the Chamber said: “His appointment comes at a pivotal moment. Greater Manchester Chamber is entering its first full financial year as a new organisation, and the role of Chair has never carried more weight. With the organisation navigating a period of genuine evolution, the Chair’s responsibilities extend beyond the boardroom: providing leadership, representing the Chamber’s voice externally, and maintaining the confidence of the business community across all ten boroughs of Greater Manchester.”
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Mr Jones said: “Greater Manchester has always been a place that punches above its weight, and the Chamber has a vital role to play in making sure businesses here have the support, the platform and the representation they deserve. I’m proud to take on this role at such an important time for the organisation, and I’m looking forward to getting to work.”
Emma Holt, president of the Chamber, added: “Wayne has been part of the foundation of this organisation for a significant period. He knows what we stand for, he knows what Greater Manchester needs, and he has the credibility and the drive to help us move forward with purpose. We’re delighted to welcome him into this role.”
The Chamber also paid tribute to Phil Cusak’s “service and commitment” to the organisation.
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