1 Reason to Still Avoid Nike Even Though It's 80% Below Its All-Time High
Falling sales in China are becoming an even bigger headache for the sneaker and sportswear company.
Overview
Nike (NYSE: NKE) is like a retired professional athlete hoping to stage a comeback, but struggling to find a way to keep pace with the next generation of stars. Down roughly 80% from the all-time high it touched in late 2021, the stock is at its lowest level in more than a decade.
Some may say it's a bargain, but there's one reason I'm still avoiding the stock: China.
Details
Nike's sales in the Greater China region fell by 26% on a constant-currency basis in the first quarter of its fiscal 2027, accelerating its decline in that region. The sneaker and athletic apparel giant doesn't seem to have a clear answer for how to win back customers in China, as consumers there have moved beyond the "Swoosh," and now tend to favor Chinese-born brands.
Source
Originally published at www.fool.com.