Shares of British sportswear retailer JD Sports fell about 2% on Wednesday following fresh signals from Nike that its recovery remains incomplete. Nike reported a 1% decline in revenue for the fiscal fourth quarter and warned investors that additional revenue drops are likely through the first half of fiscal 2027 as it manages competitive pressures and elevated inventory.
The companys quarterly top line was marginally better than analysts had feared, but the performance did little to persuade markets that CEO Elliott Hills near two-year effort to revive growth is gaining durable momentum. Nike shares have declined about 35% so far this year and moved lower again in premarket trading on Wednesday, falling an additional 3%.
Greater China the principal pressure point
Sales in Greater China fell 17% on a constant-currency basis in the quarter, a sharper contraction than the 10% decline reported in the prior period. Nike had been forecasting a 20% decline three months earlier, so the quarterly outcome was slightly less severe than that prior projection, but the region continues to lose share to local competitors amid weak product assortments. Greater China represents roughly 15% of Nike's annual revenue and is the companys third-largest market globally.
Company commentary highlighted that domestic rivals in China are gaining traction while Nike works through assortments and inventory positioning.
North America and profitability
In North America, revenue rose 3% for the quarter, driven in part by Nike rebuilding wholesale relationships that were reduced during the prior CEO John Donahoes shift toward direct-to-consumer channels. On an adjusted basis, Nike reported earnings of $0.20 per share for the quarter, beating analyst expectations of $0.13, according to LSEG data.
Market reaction and investor sentiment
Although the top-line performance was mildly ahead of forecast, the update failed to reassure investors that the companys turnaround is on a clear path. Headlines emphasizing the continued revenue guidance deterioration, the pronounced weakness in Greater China and elevated inventory levels contributed to downward pressure on shares of both Nike and related retail peers, including JD Sports.
Promotional and research context included in company coverage
Investment product commentary included with coverage compared Nike to other names evaluated by algorithmic models. Those materials note that an AI-driven selection process reviews thousands of companies monthly using hundreds of financial metrics, and cite past examples of strong performers identified by that process, such as Super Micro Computer and AppLovin, which were noted to have delivered gains of 185% and 157% respectively in prior periods. The commentary framed Nike within that evaluative process and invited investors to consider how current strategies stack up against alternatives.