Nike Faces 17% Revenue Decline in China for Q2 2026, Urgent Turnaround Needed
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- China Market Challenges: In Q2 2026, Nike generated $1.4 billion from its China segment, accounting for 11% of total revenue, but faced a 17% year-over-year decline, indicating weak demand that could impact overall performance.
- Turnaround Strategy Implementation: Since taking over a year ago, CEO Elliott Hill has implemented a 'Win Now' strategy focusing on refreshing wholesale relationships and boosting product innovation, which is seen as crucial for the company's turnaround despite short-term difficulties.
- Financial Expectations: Analysts forecast a 1% revenue increase for fiscal 2026, while earnings per share are expected to drop by 28%, highlighting significant challenges that the company must overcome during its transformation, necessitating close monitoring of these financial metrics by investors.
- Maintaining Brand Advantage: Nike continues to leverage its strong brand influence and high-profile athlete endorsements to maintain an edge in the competitive sportswear market, with management needing to rely on brand excitement to support future market performance.
NKE
$60+Infinity%1D
Analyst Views on NKE
Wall Street analysts forecast NKE stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NKE is 85.60 USD with a low forecast of 68.00 USD and a high forecast of 120.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
28 Analyst Rating
19 Buy
9 Hold
0 Sell
Moderate Buy
Current: 57.340
Low
68.00
Averages
85.60
High
120.00
Current: 57.340
Low
68.00
Averages
85.60
High
120.00
About NKE
NIKE, Inc. is engaged in the designing, marketing and distributing of athletic footwear, apparel, equipment and accessories and services for sports and fitness activities. The Company's operating segments include North America; Europe, Middle East & Africa (EMEA); Greater China; and Asia Pacific & Latin America (APLA). It sells a line of equipment and accessories under the NIKE Brand name, including bags, socks, sport balls, eyewear, timepieces, digital devices, bats, gloves, protective equipment and other equipment designed for sports activities. It also designs products specifically for the Jordan Brand and Converse. The Jordan Brand designs, distributes and licenses athletic and casual footwear, apparel and accessories predominantly focused on basketball performance and culture using the Jumpman trademark. The Company also designs, distributes and licenses casual sneakers, apparel and accessories under the Chuck Taylor, All Star, One Star, Star Chevron and Jack Purcell trademarks.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
