**Nike Faces Record Losing Streak Amid China Concerns and Inventory Troubles**.
**Introduction**.
Nike, the sportswear giant, is facing a challenging period marked by a record-breaking losing streak in its stock performance, coupled with concerns over the Chinese market and inventory issues..
**Losing Streak**.
Nike’s shares have been on a downward trajectory, recording seven consecutive weeks of declines. This marks the company’s longest losing streak since 2017. The decline has eroded approximately $14 billion from Nike’s market capitalization..
**China Concerns**.
Nike’s performance has been significantly impacted by the ongoing geopolitical tensions between China and the United States. China is Nike’s largest market outside of North America, accounting for approximately 16% of its total revenue. However, the country’s zero-COVID policy, coupled with economic headwinds, has dented consumer confidence and weighed on Nike’s sales in the region..
**Inventory Woes**.
In addition to China-related challenges, Nike is also grappling with inventory management issues. The company has been experiencing a surplus of products, particularly in the North American market. This excess inventory has led to markdowns and promotions, eroding margins and pressuring profitability..
**Analysts’ Perspectives**.
Analysts have expressed concerns about Nike’s ability to navigate these headwinds. Some have downgraded the company’s stock, while others have reduced their earnings estimates..
