Nike shares dropped 3.6% on Tuesday after JPMorgan downgraded the stock to underweight and cut its price target to $40 from $47, warning that the company's turnaround strategy could pressure earnings through fiscal 2028. Analyst Matthew Boss estimates that Nike's decision to pull back online sales in China to its own flagship stores on Tmall, JD.com, and Douyin while ending partnerships with Topsports and Pou Sheng could erase roughly $1 billion in revenue, representing about 20% of its fiscal 2026 China sales. The company is also planning store closures across North America as it sacrifices near-term revenue for tighter control over pricing, inventory, and customer experience. Nike's stock has already fallen roughly 33% this year, and JPMorgan sees a bumpier recovery ahead.
Pou Sheng International Holdings Ltd
Topsports International Holding Ltd
Jd Com Inc
Nike Inc
JPMorgan Chase & Co