Nike shares fell sharply after the company reported continued weakness in China sales, raising fresh doubts among investors about the pace and durability of its global turnaround strategy.
The sportswear giant has been working to revive growth through product innovation, tighter inventory management, and a renewed focus on direct-to-consumer channels. However, disappointing performance in China—one of Nike’s most important international markets—has emerged as a major obstacle to that effort.
Company disclosures showed that consumer demand in China remains under pressure, weighed down by cautious spending, intense competition from local brands, and uneven economic conditions. Analysts said the slowdown is particularly concerning because China has historically been a key driver of Nike’s international growth and profitability.
The market reaction was swift, with investors selling shares on fears that a prolonged slump in China could offset gains made elsewhere. While North American and European markets have shown signs of stabilization, they have not been strong enough to fully compensate for the shortfall in Asia.
Executives acknowledged the challenges, noting that Nike is recalibrating its China strategy by adjusting pricing, refining marketing campaigns, and accelerating the rollout of products tailored to local tastes. The company also emphasized long-term confidence in the Chinese market, citing its large consumer base and strong interest in sports and fitness.
Despite those assurances, some analysts warned that rebuilding momentum in China may take longer than expected. Domestic competitors have gained ground by offering trend-driven designs and aggressive pricing, forcing global brands like Nike to rethink how they position themselves.
The setback comes at a sensitive time for Nike, which is under pressure to demonstrate that its broader turnaround plan can deliver consistent growth. Investors are closely watching margins, inventory levels, and international performance for signs that the company is regaining its footing.
While Nike remains one of the world’s most recognizable athletic brands, the sharp drop in its share price highlights growing skepticism about near-term prospects. Until demand in China shows clearer signs of recovery, analysts say confidence in Nike’s comeback is likely to remain fragile.
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