Nike is officially trading like the glory days are a distant memory.
Shares of Nike Inc. have fallen to $38.59, their lowest level in 12 years, bringing the stock’s decline to roughly 38% in 2026. Since its November 2021 peak near $180, Nike has lost approximately 78% of its value and around $200 billion in market capitalization.
The latest selloff gained momentum after Dick’s Sporting Goods issued weaker guidance, adding pressure to an athletic apparel sector already rattled by disappointing revenue expectations from On Holding.
Nike’s problems have been building for years. Its aggressive direct-to-consumer strategy pushed the company away from traditional retail partners and toward its own stores and apps. The move damaged relationships with retailers and created room for competing brands to grab shelf space.
That competition has become impossible to ignore. On Holding, Hoka and New Balance have carved out serious territory in running and lifestyle footwear while Nike leaned heavily on familiar franchises including Air Jordan and Dunks.
China has become another major headache. Greater China has now recorded eight consecutive quarters of declining sales as younger consumers increasingly embrace domestic brands such as Anta and Li-Ning.
Nike’s profitability has taken a hit as well. Heavy discounting to clear inventory has pushed operating margins down to about 9%, far below the company’s traditional mid-teens range. A reported $986 million tariff refund also helped inflate a recent earnings result, making the underlying recovery look stronger than it actually was.
Still, Nike’s enormous scale gives investors a reason to keep watching.
The stock now carries a trailing P/E of roughly 18.39 and a dividend yield around 4.25%, making the battered giant considerably cheaper than its historical levels.
CEO Elliott Hill is attempting to rebuild wholesale relationships while accelerating new product development. The turnaround will require patience. Nike and Wall Street expect revenue pressure to continue through at least the first half of fiscal 2027.
The swoosh isn’t finished. But the comeback has become a much bigger job than Nike once imagined.