Nike stock fell 11% in June as investors grew cautious ahead of its earnings report, especially after competitor Lululemon Athletica posted disappointing results earlier in the month. The company has been grappling with internal missteps, including a shift away from wholesale partnerships that hurt sales, along with inflation and tariff pressures. Nike reported mixed fiscal 2026 fourth-quarter results, with flat full-year revenue and a 1% decline in quarterly revenue, though gross margin improved to 49.2% and earnings per share reached $0.72, boosted by a tariff refund. Sales in China dropped 17% in the quarter, and near-term guidance was lowered due to changing global shopping behaviors related to the Iran war, but wholesale revenue in North America grew double digits for the full year. The stock has since recovered, rising 4% after the report as investors focus on the ongoing turnaround efforts.
Nike IncNike reported flat full-year revenue, 1% decline in quarterly revenue, and 17% drop in China sales, with lowered guidance.
Lululemon Athletica Inc.Lululemon posted disappointing results, which is mentioned as a factor that made investors cautious ahead of Nike's earnings.
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