Weakening Sales Lower Expectations
Negative sentiment was immediately reflected in trading on September 18, 2026, when Nike shares fell 1.32% to $35.88. UBS contributed to the decline by cutting its price target from $48 to $42 while maintaining a Neutral rating. The move followed distribution channel checks indicating that global sales trends had deteriorated further over the past three months. Weakness emerged in direct-to-consumer sales in both the US and Europe, European wholesale, and China, prompting companies to step up promotional activity. UBS analysts therefore expect earnings per share for the first quarter of fiscal 2027 to fall 5 cents short of expectations. For the second quarter, they forecast just 31 to 43 cents, significantly below the Wall Street consensus of 53 cents.
On Enters Football
Competition has dealt the American giant another blow. Swiss company On Holding announced a key partnership with French football star Kylian Mbappé, who will become both a global brand ambassador and a product development partner. The move marks On’s official entry into the global football market, directly challenging Nike in a segment where the American brand has long held a dominant position.
Removal from a Prestigious Index
Declining sales and mounting competition have also weighed on the company’s overall market standing. Nike is set to be removed from the prestigious S&P 100 index before trading opens on September 21, following an approximately 80% decline in its market capitalisation over five years. Adding to its difficulties, the company has become the worst-performing stock in the Dow Jones in 2026.
Nike, Inc. Stock Price Performance Over the Past Five Years [USD]
(Source: CNBC)
Earnings Will Test the Turnaround Strategy
Attention now turns to October 1, when the company’s earnings release will mark its next key milestone. Investors will closely examine whether CEO Elliott Hill’s restructuring strategy is beginning to bear fruit and whether it can effectively address weakening sales and intensifying pressure from aggressive competitors. How quickly and convincingly the company advances its turnaround plan will determine its future direction.
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Source:
https://www.investing.com/news/stock-market-news/why-is-nike-stock-sliding-today-93CH-4907336
https://www.cnbc.com/quotes/NKE
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