Nike Shares Fall as China Revenue Drops 12% and Turnaround Stumbles

2 articles · Updated · Fortune · Jul 4

Nike’s latest quarterly report showed its recovery still sputtering, sending the stock lower after management issued a cautious outlook for the current quarter.
China revenue fell 12%, Converse remained in free fall, and Nike kept losing share in categories like running shoes even as North America revenue rose 3%.
Recent self-inflicted mistakes deepened investor concern, including a Boston Marathon ad that appeared to mock slower runners and World Cup merchandise shortages in U.S. stores.
Nike also cut some financial disclosures, including sales by gender, prompting analysts to question whether its women’s growth push has stalled and whether management is being fully transparent.
The weak report underscores how CEO Elliott Hill’s turnaround—rebuilding wholesale ties, refocusing on performance gear and fixing China—may take longer than expected; the shares are down 75% from their peak five years ago.