Stories
Nike Stock Plunges 8.5%; Loses $230 Billion Market Cap Amid Bleak Outlook
M
Moneycontrol•02-10-2026, 10:13
Nike Stock Plunges 8.5%; Loses $230 Billion Market Cap Amid Bleak Outlook
- •Nike shares crashed 8.5% after forecasting a high-single-digit revenue decline for fiscal 2027 and announcing job cuts as part of a $2.5 billion cost-saving plan.
- •The sportswear giant reported Q1 revenue of $11.2 billion, down 4% year-over-year, and profit fell 2% to $712 million, missing analyst expectations.
- •Weakness in China, declining sales in Sportswear and Jordan businesses, and 14 consecutive quarters of falling Converse revenue are contributing to the pressure.
- •Nike will reorganize its business, consolidating geographical divisions to generate $2.5 billion in savings, leading to job reductions.
- •The stock is down over 40% this year, with its market cap reduced by $230 billion from its record high, signaling stalled turnaround efforts.
Key Questions Answered
Nike shares crashed after the sportswear giant forecast a high-single-digit revenue decline for fiscal 2027 and announced job cuts as part of a $2.5 billion cost-saving plan.
Nike is reorganizing its business and consolidating geographical divisions to generate $2.5 billion in savings over five years, which will result in fewer roles across the company.
China remains a major issue due to local competition and preference for domestic brands, alongside a low-double-digit sales decline in Sportswear, lagging Jordan products, and 14 straight quarters of falling Converse revenue.
