Nike Shares Slide as Weak Outlook and China Slowdown Weigh on Growth

Nike shares fell more than 8% in after-hours trading following a cautious outlook that overshadowed otherwise better-than-expected quarterly results. The company warned that sales are likely to decline for the remainder of the year, with particular weakness expected in its China business — one of its most critical growth markets.

During its earnings call, Chief Financial Officer Matt Friend said Nike expects revenue in the current quarter to drop between 2% and 4%, missing market expectations for growth. For the full calendar year, the company anticipates a low single-digit decline in sales, as steady performance in North America is offset by ongoing softness in China, where sales are projected to fall by around 20% in the near term.

Despite the weak outlook, Nike delivered a solid fiscal third-quarter performance, beating analyst expectations on both revenue and earnings. The company reported $11.28 billion in revenue and earnings per share of 35 cents. However, profitability declined significantly, with net income falling 35% year-over-year due in part to rising costs and pressure on margins.

Regionally, the picture remains mixed. North America — Nike’s largest market — showed modest growth, with revenue increasing 3% to just over $5 billion. In contrast, the Greater China region continued to struggle, with sales declining 7% during the quarter, reflecting broader economic softness and shifting consumer demand.

Nike’s ongoing turnaround strategy under CEO Elliott Hill is beginning to show progress, particularly in rebuilding relationships with wholesale partners, where revenue rose 5%. However, direct-to-consumer sales declined, highlighting continued challenges in balancing its distribution channels and restoring momentum across the business.

Looking ahead, the company faces increasing external pressures, including geopolitical tensions, rising oil prices, and inflationary concerns that could dampen consumer spending globally. Nike executives acknowledged that the current outlook could shift further depending on how these macroeconomic factors evolve.

As Nike works through its multi-year turnaround, investors remain cautious about the pace of recovery — particularly in China — and whether the company can sustain growth in a more volatile global environment.