Nike shares closed at $33.96, up 0.27%, after another challenging stretch for the global sportswear company. Barclays maintained its Buy rating even as Nike contends with weaker revenue, declining sales in China, and a prolonged slide in its share price. The bank now views the most recent quarter as another reset that could support a broader recovery phase.

Barclays Maintains Buy Rating, Lowers Target to $37

Barclays analyst Adrienne Yih retained a positive rating on Nike even as the bank reduced its price target. Following a review of Nike's latest earnings and updated business outlook, Barclays cut its target to $37 from $48. Price targets represent an analyst's estimate of a stock's value over a typical 12-month horizon rather than a certainty, and Barclays' revised figure sits roughly 9% above Nike's latest close while still reflecting expectations for gradual stabilization.

For the latest quarter, Nike reported earnings of $0.48 per share, beating the consensus estimate of $0.43. Revenue, however, fell 4% year over year to $11.21 billion, missing Wall Street's $11.32 billion forecast and reinforcing pressure on Nike's near-term growth outlook.

The earnings beat pointed to some resilience, but weak sales remained a central concern across major markets. Under Chief Executive Elliott Hill, Nike continues to adjust product distribution, inventory levels, marketing priorities, and operating costs. Barclays views these moves as important steps in Nike's broader effort to restore sales growth and improve profitability.

Weak China Sales Keep Pressure on Recovery

China remains one of Nike's most difficult markets, with demand weakening across both footwear and apparel categories. Sales in China fell 26% during the fiscal first quarter, adding pressure to Nike's international performance. The decline also underscored softer brand momentum and tougher competition from local sportswear companies across the Chinese market. That 26% regional drop is far steeper than the high-single-digit company-wide revenue decline Nike has guided for fiscal 2027, which is why stronger execution in China is now seen as essential to supporting the company's wider global recovery plan.

As domestic brands continue expanding their presence and product ranges, Nike has been forced to reconsider its pricing, product launches, distribution channels, and broader regional approach. How China revenue trends develop in upcoming quarterly reports will offer the most direct read on whether those adjustments gain traction.

Nike also expects fiscal 2027 revenue to decline by a high-single-digit percentage under its current outlook, a forecast indicating the turnaround will take time even as management advances its Win Now strategy. The company additionally plans job cuts during 2027 as it works to reduce costs and rebuild operating efficiency, making the pace of those reductions one visible measure of the restructuring's execution.

Nike Stock Trades Near 13-Year Low

Nike shares have fallen sharply as weaker growth and repeated earnings pressure eroded market confidence during 2026. The stock has dropped roughly 47% this year and trades near its lowest level in 13 years. Over five years, Nike shares have lost approximately 77%, reflecting the scale of the extended market decline.

The fall has pushed Nike's valuation lower while the company works through slower demand and internal restructuring. Barclays, however, sees the latest reset as a possible base for improvement if operating trends begin to stabilize, with stronger margins and better revenue trends supporting sentiment as management delivers more evidence of progress.

Significant execution demands remain across China, North America, digital sales, wholesale channels, and product innovation. Even so, Nike retains a large global brand, a broad distribution network, and a strong presence across major sports categories. The markers to watch from here are concrete: quarterly China revenue, progress against the fiscal 2027 high-single-digit revenue guidance, and delivery of the planned job cuts. Barclays' Buy rating now rests on Nike demonstrating that recent weakness can give way to steadier financial performance.