Nike Stock Drops 3% Overnight as CEO Admits Weaker Demand in Key Lifestyle Categories

Nike's stock traded lower overnight on Tuesday after the company reported Q4 2026 earnings that beat Street expectations, but CEO Elliott Hill acknowledged the sportswear giant is not living up to its full potential. Hill said weak demand in Nike Sportswear and Jordan Streetwear has led to higher discounting and softer wholesale orders, with sales in Greater China falling 12% to $1.3 billion in the quarter.

On a brighter note, Hill highlighted strong momentum ahead of the ongoing FIFA World Cup 2026, noting that pre-tournament football kit sales reached 2.5 times the level recorded before the 2022 tournament, with the newly launched Mercurial cleated footwear becoming Nike's fastest-selling 24-hour launch for that category.