Nike stock loses 36% in first half as tariffs squeeze margins

Nike shares lost 36% in the first half of 2026 as flat revenue and tariff costs squeezed margins, marking the footwear giant's worst six-month stretch since the pandemic-era selloff.

"The tariff impact has been more severe than we anticipated, and the timeline for margin recovery has extended," Elliott Hill, chief executive officer at Nike, said on the company's third-quarter earnings call in March.

Revenue was flat at $11.3 billion in the fiscal third quarter ended Feb. 28, while gross margin contracted 130 basis points to 40.2%. The stock plunged 15.5% on April 1, the day after the report, its steepest single-day decline of the year. In the fiscal fourth quarter ended May 31, revenue slipped 1%, and the company forecast that gross margin would not return to growth until the second quarter of fiscal 2027, which ends in November. The company's chief financial officer also said she would step down, adding to leadership uncertainty.

The 36% decline leaves Nike down more than 75% from its all-time high, testing the patience of investors who had hoped Hill, who took over as chief executive nearly two years ago, could reverse the company's fortunes. Nike has lost significant ground in China, where sales have fallen roughly 30% from five years ago, according to company disclosures. The brand is gaining market share in running, but that has not offset weakness in other categories and the broader tariff headwinds that have pressured margins across the apparel sector.

The results signal that Nike's turnaround will take longer than management initially projected. Investors will watch the fiscal first-quarter earnings report, expected in late September, for signs that gross margin has stabilized and that the China sales decline is moderating.

This article is for informational purposes only and does not constitute investment advice.