Nike Just Admitted Its China Problem Is About to Get Worse, With $230 Billion in Market Cap Already Gone

RBC Capital maintained its Sector Perform rating and $40 price target for Nike (NKE), citing deeper operational challenges and reduced earnings estimates. Nike's stock fell 9% after a revenue miss and weak guidance for fiscal 2027, with revenue expected to decline in the high single digits. Multiple analysts lowered their price targets, citing sales declines and slow turnaround progress. The stock trades at $35.15, near its 52-week low.

Nike (NKE) reported a 4.3% revenue decline and 2% profit drop in Q1 2027, with full-year guidance worse than estimates. Layoffs and a new India campus were announced. Goldman Sachs sees negative impacts on Asia-Pacific supply chains. Greater China revenue fell 22%. Shares dropped 9.7% pre-market. Analysts' views are divided.

Nike's shares fell 10.36% in premarket trading Friday after reporting a 4% revenue decline to $11.2 billion in Q1, with net income down 2% to $712 million. The company expects high-single-digit revenue declines in 2027 and plans layoffs starting that year as part of a new operating model, 'Pace,' aiming for $2.5 billion in cost savings by 2031. Citi analysts remain neutral, citing below-market sales guidance and pressure in key segments.

Telsey Advisory Group cut its Nike (NKE) price target to $35 from $44, citing slow turnaround progress. Nike's stock is near its 52-week low, down 51% over the past year. The firm expects sales growth to resume only by 2028. Nike reported Q1 fiscal 2027 revenue of $11.2B, down 4.3% YoY, and issued weak guidance. Analysts have mixed reactions, with targets ranging from $24 to $50.

Goldman Sachs cut Nike's (NKE) price target to $30 from $38, citing weak fiscal 2027 guidance and revenue misses. The stock has fallen 51% over the past year. Analysts expect EPS of $1.67 for fiscal 2027. Nike's Sportswear, Jordan, and China businesses declined significantly, while Performance grew. The company plans significant actions to improve its marketplace, impacting fiscal 2027-2028 margins. Several firms adjusted their price targets following Nike's Q1 results and guidance.

Truist Securities cut Nike's (NKE) price target to $29 from $42, citing weak guidance and China business decline. Nike shares fell 9% post-earnings, trading near 52-week lows. The company expects high single-digit sales declines and EBIT pressure. Multiple analysts lowered price targets, citing weak outlook and China challenges. Nike's revenue missed estimates, but EPS beat expectations.