The shares of the world-famous Nike company sharply declined due to sales results in the Chinese market not meeting expectations. This was reported by Zamin.uz.
After the company's quarterly financial reports were released, the stock price fell by nearly 10 percent. Although the main indicators in the report exceeded analysts' forecasts, investors paid significant attention to the sluggish development in the Chinese market.
In the quarter ending November 30, 2025, Nike's total revenue amounted to 12.4 billion dollars. This represents a 1 percent increase compared to the same period last year.
Earnings per share were 0.53 dollars, exceeding market expectations. According to forecasts formed by LSEG, the company's revenue was expected to be 12.1 billion dollars, and earnings per share were anticipated to be 0.37 dollars.
Nevertheless, the prolonged decline in China is causing concern among investors. Sales volume in the Chinese market decreased by 17 percent, falling to 1.42 billion dollars.
Experts believe this decline is the result of a negative trend continuing for several quarters. Additionally, other financial indicators of the company did not leave a positive impression.
Nike's net profit decreased by 32 percent, and the gross profit margin dropped to 40.6 percent due to tariffs and cost pressures. Revenue through Nike Direct channels declined by 8 percent, while the digital sales segment experienced a double-digit decrease.
The company's management expects revenue pressure to continue in the upcoming quarter. At the same time, the leadership views the current situation as an opportunity to restore and adapt the business.
The company plans to update its strategy to restore growth in key markets.
