- Nike shares dropped 4% to $39, hitting a 52-week low amid weak demand concerns
- Shares are down 51% from the 52-week peak of $80.16, underperforming rivals
- Fiscal 2026 revenue was $46.4 billion, with China sales down 11% and Converse down 31%
Nike shares fell 4% to $39 on Monday, hitting a fresh 52-week low, as concerns over the company's slow recovery, weak demand in China and dividend sustainability weighed on investor sentiment.
Nike shares are down about 51% from their 52-week peak of $80.16. While rival apparel and footwear stocks also fell, Nike's steeper decline points to additional company-specific concerns weighing on the stock.
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Nike pays a quarterly dividend of $0.41, or $1.64 annually, giving the stock a yield of about 4.15% at Monday's price.
Based on fiscal 2026 earnings per share of $2.10, the payout ratio stands at 78%.
Excluding a $0.52-per-share benefit linked to anticipated tariff recoveries, however, earnings would fall to about $1.58, putting the dividend above adjusted earnings in a stress scenario.
Nike's fiscal 2026 revenue was $46.4 billion, while Nike Direct sales fell 6% and digital sales declined 12%. Converse revenue plunged 31%.
China remains a key weakness. Greater China revenue fell 11% on a reported basis and 13% excluding currency effects to $5.85 billion. Footwear unit sales in the region dropped 14%, while digital sales declined 29%.
North America offered a brighter spot, with revenue rising 5%.
Analysts remain divided. A 25-analyst consensus has nine Buy, 14 Hold and two Sell ratings, with an average target of $50.29. JPMorgan downgraded Nike to Sell earlier this month with a $40 target.
For investors, stronger China demand, improving digital sales and healthier margins excluding tariff benefits will be crucial to determining whether Nike's depressed valuation represents an opportunity or a value trap.
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