Nike (NKE) shares fell about 4%on Monday, dropping below $40 and reaching their lowest level since September 2014. The decline extended a prolonged selloff that has erased more than $200 billion from the sportswear company’s market value since its 2021 peak.
NKE stock traded around $38.90 to $39.42 during the session after closing Friday at $40.73. Nike shares are now down roughly 38% in 2026, more than 5% in August and nearly 78% from their November 2021 record high of $179.10. The company was also among the weakest performers in the Dow Jones Industrial Average during Monday’s session.
No new earnings report or major corporate announcement accompanied the latest decline. Instead, the selling extended a broader retreat as investors assess Nike’s sales performance, competition, and efforts to reshape its retail strategy.
Nike Stock Faces Pressure From Sales and Retail Strategy
Nike’s financial outlook remains one source of pressure on the stock. Weak revenue trends and cautious guidance have raised questions about how quickly the company can restore growth while managing the costs associated with its turnaround.
The company’s direct-to-consumer strategy has also faced challenges. Nike previously reduced its reliance on wholesale retailers while expanding sales through its own stores, websites, and apps. Digital sales later declined 12%, prompting the company to rebuild relationships with wholesale partners as it adjusts its distribution strategy.
That shift comes as Nike works to improve its position across major footwear categories. The company has relied heavily on established franchises such as Air Force 1 and Dunk, while competitors, including On Holding and Hoka, have gained ground in performance running.
Nike now faces the task of balancing direct sales with wholesale distribution while introducing products capable of attracting consumers in categories where competition has increased.
China Weakness Adds to Nike’s Turnaround Challenges
Greater China remains another area of concern for Nike. Sales in the region fell 12% year over year in recent quarters as domestic athletic brands gained market share and consumer preferences changed.
Local companies including Anta and Li-Ning have expanded their presence in the Chinese sportswear market. That competition has added pressure on Nike as the company restructures its operations in a market that previously served as an important source of growth.
The combination of weaker international demand, increased competition, and changes to Nike’s distribution strategy has accompanied the steep decline in NKE stock. Shares traded above $70 in late 2025 before falling through several price levels during 2026 and eventually moving below $40.
The latest decline also puts Nike near a new 52-week closing low. While the stock traded at its lowest intraday level in almost 12 years, the final closing price determines whether it establishes another long-term closing low.
Source: TipRanks
Despite the decline, Wall Street forecasts remain above Nike's current share price despite the selloff. Based on 25 analysts, the average 12-month NKE stock price target stands at $50.29, representing about 28.5% upside from a price of $39.13.
However, the analysts' forecasts vary considerably, with the lowest analyst price target standing at $40, placing it close to Nike's current trading level. The highest target reaches $75, which would represent roughly 92% upside from $39.13 if achieved.
