Nike Inc. (NKE) Stock: Barclays Backs Recovery Despite Weak China Sales

TLDR

• Nike stock rises 0.27% to $33.96 as Barclays keeps its Buy rating
• Barclays cuts Nike’s price target to $37 from its previous $48 level
• Nike revenue falls 4% to $11.21 billion and misses Wall Street forecasts
• China sales drop 26% as Nike faces weaker demand and local competition
• Nike shares remain down 47% in 2026 and trade near a 13-year low

Nike stock closed at $33.96, up 0.27%, after another difficult stretch for the global sportswear company. Barclays maintained its Buy rating, even as Nike faces weaker revenue, falling China sales, and a prolonged share-price decline. The bank now sees the latest quarter as another reset that could support a broader recovery phase.

NIKE, Inc., NKE

Barclays Maintains Buy Rating on Nike Stock

Barclays analyst Adrienne Yih kept a positive rating on Nike, although the bank reduced its price target. Barclays lowered the target to $37 from $48 after reviewing Nike’s latest earnings and updated business outlook. The revised target still sits above Nike’s current market price and reflects expectations for gradual stabilization.

Nike reported earnings of $0.48 per share, beating the $0.43 consensus estimate for the latest quarter. However, quarterly revenue fell 4% from the previous year to $11.21 billion during the reporting period. That figure missed Wall Street’s $11.32 billion forecast and reinforced pressure on Nike’s near-term growth outlook.

The earnings beat showed some resilience, but weak sales remained a key concern across major markets. Nike continues adjusting product distribution, inventory levels, marketing priorities, and operating costs under Chief Executive Elliott Hill. Barclays sees these moves as important steps within Nike’s wider effort to restore sales and improve profitability.

Weak China Sales Keep Pressure on Nike Recovery

China remains one of Nike’s largest challenges as regional demand continues to weaken across footwear and apparel categories. Sales in China fell 26% during the fiscal first quarter, adding pressure to Nike’s international performance. The decline also highlighted weaker brand momentum and tougher competition from local sportswear companies across the Chinese market.

Nike has faced slowing demand in China while domestic brands continue expanding their presence and product ranges. That shift has forced Nike to reconsider pricing, product launches, distribution channels, and its broader approach within the region. Management now needs stronger execution in China to support its wider global recovery plan during fiscal 2027.

The company also expects fiscal 2027 revenue to decline by a high-single-digit percentage under its current outlook. That forecast shows the turnaround will take time, even as management advances its Win Now strategy. Nike also plans job cuts during 2027 as it works to reduce costs and rebuild operating efficiency.

Nike Stock Trades Near 13-Year Low

Nike shares have fallen sharply as weaker growth and repeated earnings pressure reduced market confidence during 2026. The stock has dropped about 47% this year and now trades near its lowest level in 13 years. Over five years, Nike shares have lost roughly 77%, reflecting the scale of its extended market decline.

The fall has pushed Nike’s valuation lower while the company works through slower demand and internal restructuring. However, Barclays sees the latest reset as a possible base for improvement if operating trends begin stabilizing. Stronger margins and better revenue trends could support sentiment as management delivers more evidence of progress.

Nike still faces significant execution demands across China, North America, digital sales, wholesale channels, and product innovation. Yet the company retains a large global brand, broad distribution network, and strong presence across major sports categories. Barclays’ Buy rating now rests on Nike showing that recent weakness can give way to steadier financial performance.

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