Nike just can't seem to do it in China.

Nike’s latest results came out with a split decision: a headline beat, but there is very little to celebrate underneath. Revenue fell flat at $11.28 billion, barely outdoing expectations of a 0.3% decline to $11.24 billion.  

However, Nike’s quarterly wholesale revenue rose 5% to $6.5 billion, propped up by steady sales in North America, while its direct-to-consumer sales fell 4%, weighed down by demand weakening in Europe and China.  

In China, Nike’s revenue has slid from a $8 billion peak in 2021 to $6 billion in 2025, while the US climbed from $15 billion to $20 billion. The world’s growth engine is sputtering, even as its home market keeps carrying the load overall still. 

Nike’s Greater China remains the weakest link with revenue dropping by 7% to $1.62 billion, showing a weak performance across its regions and by extension missing the expectations of analysts. Moreover, the pressure is continuing to build underneath. The company’s gross margin fell 130 basis points to 44.7%, following higher input costs and heavier discounting as Nike was left with no choice but to work through excess inventory. 

Executives are flagging their concern that the turnaround is taking longer than anticipated, with China continuing to weigh on overall growth at the backdrop of a soft consumer demand Consequently the footwear company is expecting the current-quarter sales to fall between 2% and 4%, a sharp U-turn from the expectations analysts penciled at a 1.9% increase. For this fiscal 2026 Q3 revenue in Greater China dropped by 11%, pulled lower by a 27% decline in equipment sales, following a downturn in footwear and apparel. This corroborates that the turnaround is not just slow but slipping.  

Tellingly, investors have reacted fast to this with the company’s shares falling more than 13% in a single day, pushing the stock to its lowest level in a span of 11 years. As concerns around China and rising costs overshadow the earnings beat. Or, as Nike CFO Matthew Friend put it: “We also recognize that the environment around us has become increasingly dynamic and could experience unplanned volatility due to the disruption in the Middle East.” This caution isn’t unfounded and adds another layer of uncertainty to an already uneven recovery for Nike.