The shares of world-renowned Nike Inc. have faced a sharp decline following weaker-than-expected sales results in the Chinese market. After the quarterly financial report was disclosed, the company's shares dropped by nearly 10 percent. Interestingly, while the key metrics in the report exceeded analysts' forecasts, investors' attention primarily focused on the lackluster performance in China.
For the quarter ending November 30, 2025, Nike reported a total revenue of $12.4 billion, reflecting a 1 percent increase compared to the same period last year. Earnings per share stood at $0.53, significantly exceeding market expectations.
According to consensus forecasts formed by LSEG, the company’s revenue was expected to be $12.1 billion, with earnings per share anticipated at $0.37. Despite these positive numbers, the prolonged decline in the Chinese market remained the most worrisome aspect for investors.
Specifically, sales volume in the Greater China region decreased by 17 percent, falling to $1.42 billion. Experts highlighted that this drop reflects a consistent negative trend that has lasted for several quarters.
Moreover, the company’s other financial indicators also left an unfavorable impression. Nike’s net profit decreased by 32 percent, while the gross profit margin declined by 3 percentage points to 40.6 percent, due to tariff and cost pressures.
Revenue from Nike Direct channels, which include direct sales, shrank by 8 percent, while the digital sales segment experienced a double-digit percentage decrease. The company's management does not rule out sustained pressure on margins and a slight reduction in total revenue in the upcoming quarter.
At the same time, Nike's board views the current situation as a phase of business recovery and adaptation. The company aims to revitalize growth rates in key markets by updating its strategy in the near future.
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