The swoosh is slipping: Why Nike's rough stretch in the stock market just even got worse

• Nike stock dropped 16% on Wednesday to its lowest level since 2014.
• The company faced a rash of Wall Street downgrades after issuing a weak sales forecast.
• Shares have gone in the wrong direction under CEO Elliott Hill, despite turnaround efforts.

When you hear the word "swoosh," you think of Nike. It's one of the most enduring logos in modern history. For decades, it's been plastered on everything.

But, apparently, when investors hear "swoosh," they think of a wind gust — the sound of something getting passed by quickly. In this case that would again be Nike, the once-mighty athletic company that finds its stock in the doldrums.

Wednesday was a particularly brutal day for Nike, with the company's stock dropping 16%, to its lowest closing level since 2014. The culprit was a bleak revenue forecast for the year ahead.

Nike said it expects sales to decline in the current quarter, then continue to fall throughout 2026. That disappointed Wall Street analysts who were looking for positive growth, and firms ranging from Goldman Sachs to JPMorgan cut their ratings on Nike stock.

The chart below shows the rise and fall of Nike over the past decade. After a COVID-era peak in late 2021, shares have been on a slow, unceremonious trip lower, capped off by Wednesday's shellacking. They're now down 75% from those highs.

Nike CEO Elliott took over in October 2024, tasked with restoring Nike to its lofty early-2020s heights. But the stock has gone the other direction, complicating Hill's ambitious "Win Now" turnaround plan focused on core sports like running.

Wednesday's first-quarter earnings report highlighted a trio of hurdles standing in Nike's way at the moment:

International weakness

China is the sorest spot for Nike in the global market, with the company forecasting a 20% sales decline in the current quarter. The nation is in the midst of an economic slowdown, and consumers have pulled back in favor of discount options while competition has increased.

Nike has also seen inventory pile up in Europe and the Middle East as the Iran war has slowed global trade.

Sportswear

This division has gone through a rough patch, with Nike having to resort to heavy discounting. The end result was a double-digit decline since last year. It's an important segment, and Hill knows it.

"Returning to a healthy sportswear business is essential and vital to our comeback," he said on the quarterly analyst call.

Converse

This one surprised me a bit. Are the rock-and-rollers who wear All-Stars trading up to footwear with better arch support? Is the indie sleaze comeback already over? Whatever the reason, the division saw a 27% year-over-year decline in the first quarter.

Converse has actually been a pain point for a while, and if things don't turn around, expect change. Hill already replaced the head of the brand in mid-2025, and potential buyers are reportedly circling.

So what comes next? Both JPMorgan and Bank of America think it's going to take nine months for Nike's next positive sales inflection. Will current shareholders stick around until then, or will more jump ship? Stay tuned.