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[Alpha Biz= Kim Sang Jin] Nike shares fell more than 9% in after-hours trading on March 31 (local time) after the company issued a weaker-than-expected sales outlook, according to reports from Reuters, Bloomberg, and the Financial Times.

During its earnings conference call, Nike forecast that revenue for the fourth quarter of fiscal year 2026 (March–May) will decline by 2% to 4%. This falls significantly short of Wall Street expectations, which had projected a 1.9% increase.

The disappointing outlook is largely attributed to ongoing weakness in the Chinese market and elevated inventory levels, which continue to weigh on the company’s recovery.

Nike expects fourth-quarter revenue in China to drop by around 20%. CFO Matthew Friend explained that the company is intentionally reducing sales in the region to manage excess inventory.

He also warned of broader uncertainties, noting that geopolitical instability in the Middle East, rising oil prices, and shifting consumer behavior could introduce additional volatility into Nike’s performance.

Greater China remains Nike’s third-largest market after North America and the Europe, Middle East, and Africa (EMEA) region, accounting for approximately 15% of total annual revenue. However, the company has struggled in recent quarters as its product competitiveness weakened and local rivals such as Anta Sports and Li-Ning gained market share.

The latest guidance underscores the challenges Nike faces in regaining momentum in key international markets while navigating global macroeconomic and geopolitical headwinds.

 

 

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