Sportswear giant Nike is facing one of its toughest financial stretches in decades, with shares dropping to $38.44—the lowest point in 12 years. Since the beginning of the year, the company's market capitalization has shrunken by 39%, wiping out nearly $200 billion in market value and marking the worst annual performance for investors since 1993.

The decline is largely driven by weakening retail demand, inventory markdowns, and a lack of fresh releases within the Jordan line. Furthermore, a strategy shift in China to rely exclusively on its own mobile app backfired, resulting in a 17% drop in regional revenue as local competitors like Anta and Li-Ning gained ground.

In response, CEO Elliot Hill has launched an aggressive turnaround plan, restructuring divisions, laying off 1,400 employees, and reassigning 8,000 specialists to boost innovation. Commercial leadership has also been reshuffled to rebuild wholesale partnerships. However, market analysts predict that a full operational recovery may take until the 2027–2028 fiscal years.