Nike Stock Down 80%: Is NKE a Turnaround Trade or a Value…

AI summary of the source article

Nike shares have dropped roughly 80% from their late-2021 high near $180 to the low $30s following persistent sales weakness and deteriorating performance in Greater China, where revenue dropped 22%. While fiscal first-quarter gross margin rose 60 basis points to 42.8% on revenue of $11.213 billion, management projects a high-single-digit revenue decline for fiscal 2027. Under CEO Elliott Hill, the company is pursuing its Pace restructuring targeting $2.5 billion in cumulative savings through fiscal 2031 against approximately $1 billion in pretax charges. Investors remain cautious as projected cost cuts struggle to offset ongoing revenue contraction.

Why it matters

The stock's steep decline and removal from the S&P 100 illustrate how ongoing revenue weakness in core markets can outweigh cost-reduction efforts.

Key facts

• Nike shares have dropped roughly 80% from their late-2021 peak near $180 into the low $30s.
• Fiscal first-quarter revenue declined 4% to $11.213 billion, while Greater China revenue fell 22% to about $1.18 billion.
• Nike's Pace restructuring targets about $2.5 billion in cumulative savings through fiscal 2031 alongside approximately $1 billion in pretax charges.