Nike shares fell 3% to $39.47 on Monday, printing a fresh 52-week low of $39.42 and leaving the stock 51% below its 52-week high of $80.16. The decline came as investors focused on the company's unresolved China problem, where Greater China revenue fell 11% to $5.85 billion and direct digital sales in the region dropped 29% in fiscal 2026. Nike's reported gross margin climbed 890 basis points to 49.2% in the fourth quarter, but 900 basis points of that came from a one-time tariff recovery, leaving underlying margin roughly flat. JPMorgan's $40 sell rating target is now effectively at the market, and a stress scenario stripping out the tariff gain would push Nike's dividend payout ratio above 100%. Peer athletic apparel stocks also fell, with Lululemon down 42% year to date, On Holding down 31%, and Deckers down 10%, while the broad retail ETF XRT remains up 5% year to date, isolating the selloff to athletic apparel.
Nike IncGreater China revenue fell 11% and digital sales dropped 29%, highlighting weak demand in a key market.
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