Nike Beats Earnings Expectations — But the Stock Is Still Sliding. Here’s Why.
Nike Beats Earnings Expectations, but Shares Slide on China Outlook
The athletic apparel giant saw its stock drop nearly 10%, trading around $59, making Nike one of the worst-performing stocks in the S&P 500 for the day — even as broader markets moved higher.
Strong Quarter, Weak Reaction
For its fiscal second quarter, Nike reported earnings per share of $0.53, well above analysts’ expectations of $0.38. Revenue rose 1% year over year to $12.4 billion, also beating forecasts.
The company posted strong performance in North America, where sales climbed 9%, signaling some progress in its turnaround efforts. However, those gains were more than offset by sharp weakness in China, where overall sales fell 17%, including a 21% drop in footwear sales.
China Remains a Major Headwind
On the earnings call, Chief Financial Officer Matt Friend warned that sales challenges in China are likely to persist for the remainder of the fiscal year.
Nike now expects third-quarter revenue to decline by low single digits, contradicting analyst expectations for growth. While North American demand remains solid, continued softness in China is weighing heavily on the company’s near-term outlook.
Investors Wanted More
Despite beating earnings estimates, the market reaction suggests investors were hoping for clearer signs of a sustained recovery — particularly in China, one of Nike’s most important international markets.
Friday’s selloff puts Nike on track for its largest single-day decline since April, when markets reacted to President Donald Trump’s “Liberation Day” tariffs announcement.
So far in 2025, Nike shares have lost around 20% of their value, reflecting ongoing concerns about global demand and execution risks.
Turnaround Still in Progress
CEO Elliott Hill, who took the helm about a year ago, described Nike as being in the “middle innings” of its turnaround strategy. The plan has focused on reducing excessive promotions, tightening distribution, and refocusing on innovation and new product development.
Some analysts remain optimistic. In a note to clients on Friday, Bank of America analysts said Nike’s turnaround strategy appears to be gaining traction, though they acknowledged disappointment in China’s performance. The firm maintained a “Buy” rating on the stock but lowered its price target to $73 from $84.
Bottom Line
Nike’s latest earnings show operational improvement in key markets like North America, but ongoing weakness in China and a cautious forward outlook are keeping investors on edge. Until the company demonstrates a clearer path to renewed growth overseas, market volatility around the stock is likely to continue.
Ethereum Price Update Today – December 19, 2025
Crypto News & Analysis delivers the latest breaking cryptocurrency news,
❓ Why did Nike stock fall despite beating earnings estimates
Investors focused on Nike’s weaker-than-expected outlook and continued sales declines in China, outweighing strong quarterly profits.
❓ How much did Nike shares drop
Nike shares fell nearly 10% in one session and are down about 20% year-to-date in 2025.
❓ What happened to Nike’s sales in China
Nike reported a 17% decline in China sales, including a 21% drop in footwear, making it the company’s biggest drag on growth.
❓ Did Nike perform well in North America
Yes. Sales in North America rose 9%, showing progress in the company’s turnaround efforts.
❓ What is Nike’s outlook for the next quarter
Nike expects revenue to decline by low single digits in the third quarter, below analyst expectations.
❓ Do analysts still like the stock
Some do. Bank of America maintained a Buy rating but lowered its price target from $84 to $73.