Nike’s Stock Continues Record Losing Streak Amidst Slowdown in China — Retail Bum

Nike’s stock continues to trend downward as reports of slow consumer recovery in China and merchandise stockpiles impact profitability.

Since August 9, 2023, Nike’s stock has slid by nearly 10%, marking the longest losing streak it has experienced since the company went public in December 1980.

The company’s business is particularly being impacted by a market slowdown in China, a key growth market for the company, where retail sales decelerated to 2.5% last month and youth unemployment is at its peak.

“Investors are waking up to the fact that China’s growth is going to be slower,” Matt Maley, chief market strategist at Miller Tabak + Co, told Bloomberg. Maley added that investors are also coming to terms with the fact that China is not going to deliver as much boost in sales as it had in past.

The slowdown in China, which accounts for a third of Nike’s business, combined with other factors, has wiped out $14 billion from the company’s market cap, which is presently valued at $154 billion.

Of course, it does not help that the company is also struggling in the U.S. market, where consumers are now less willing to spend money on discretionary purchases.