TLDR
- Nike closed roughly a dozen U.S. stores in July 2026 alone as part of its Global Operations Changes restructuring plan.
- Nike will cut online sales through Chinese distributors Topsports and Pou Sheng starting January, shifting to its own platforms and Tmall, JD.com, and Douyin.
- Q4 fiscal 2026 revenue fell 1.1% year-over-year, though EPS of $0.20 beat the $0.11 consensus estimate.
- Nike Direct revenue dropped 9%, Nike Digital fell 12%, and Converse revenue declined 32% in Q4.
- Wall Street analysts hold an average “Hold” rating with an average price target of $53.86, well above the current stock price near $41.85.
Nike (NKE) stock opened at $41.85 on Friday, sitting near its 52-week low of $40.00. The stock is down sharply from its 52-week high of $80.17 and trades below both its 50-day moving average of $43.68 and 200-day moving average of $51.15.
The company is in the middle of a wide restructuring effort that is touching its retail footprint, its digital channels, and its workforce all at once.
In July 2026, Nike closed roughly a dozen U.S. stores in a single month. Locations shuttered include stores in California, Florida, Georgia, Illinois, Kentucky, Missouri, Maryland, New Jersey, North Carolina, and Texas.
Nike has not said how many more stores it plans to close for the rest of the year.
The closures fall under Nike’s Global Operations Changes, announced in April 2026. The plan is designed to improve competitiveness and support long-term profitable growth by optimizing its supply chain, accelerating technology, and investing in employee training. The restructuring is expected to cut around 1,400 Global Operations positions.
Nike has also discontinued its Nike Fitness Studios venture and closed technology offices in three locations, consolidating into two hubs.
China Strategy Shift Raises Concerns
On July 22, Nike announced it would stop selling online through its Chinese distributors Topsports and Pou Sheng starting in January. Instead, it will focus on its own website and app, along with Tmall, JD.com, and Douyin.
The stock dropped 2% on that news. Wall Street has been skeptical, with analysts warning the move could pressure near-term sales and risk further market share losses in China.
Q4 fiscal 2026 results showed the challenges piling up. Revenue fell 1.1% year-over-year to $10.97 billion. Nike Direct revenue dropped 9%, Nike Digital fell 12%, revenue from Nike-owned stores was down 7%, and Converse revenue declined 32%.
On the positive side, Nike beat earnings expectations. EPS came in at $0.20 versus the $0.11 consensus.
Analysts Hold Cautious Stance
CEO Elliot Hill acknowledged the difficulties on the Q4 earnings call. “We know we’re not living up to our full potential,” he said, pointing to a complex macro environment and pressure on discretionary spending.
Morningstar Investment Management reduced its NKE stake by 32.1% in Q1, selling 48,855 shares. Insiders have also been selling, with EVP Philip Mccartney offloading 17,398 shares in June at $46.18 each.
Analyst price targets have moved lower. Wells Fargo cut its target from $45 to $40. Piper Sandler dropped its target from $50 to $45. China Renaissance lowered its target from $50.30 to $47.30.
Robert W. Baird held its outperform rating with a $70 target. The average analyst target across Wall Street sits at $53.86, with 19 analysts rating the stock a Hold.
Nike’s quarterly dividend stands at $0.41 per share, representing a 3.9% yield at current prices.
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