Increased competition and stale product lines leave Nike’s share price trailing the field

The past few weeks have been unkind to Nike shareholders, with the footwear giant falling for 10 straight sessions – its longest losing streak since its 1980 market debut.

Nike’s losing streak arguably sounds more grave than it is, given the stock only fell about 11 per cent over that period – not good, but such corrections are common in stock markets.

Still, Nike investors have been concerned for some time now. The stock has lost 45 per cent of its value since peaking at about $175 (€162) in late 2021. It’s been in a persistent downtrend this year, even as the S&P 500 raced ahead. Multiple issues are weighing on Nike.

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It’s facing increased competition from emerging brands. Analysts bemoan stale product lines. Weak demand has led to an inventory glut. Nike missed estimates during June’s earnings report and issued soft guidance. Mounting concerns regarding China’s economy have been a particular source of unease, given China is a key growth market for Nike.

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Shareholders will be hoping the bad news is finally reflected in Nike’s share price – something that will become clear when the company reports earnings next month.