As emerging sports brands On and Hoka rapidly rise in the running shoe market, Nike's stock price has plummeted to a 12-year low.

In China, a key overseas market, sales are on a downward trajectory as it loses ground to local competitors such as Anta Sports and Li-Ning.

On the 17th, local time, Nike closed down 4.03% from the previous trading session at $39.09 on the New York Stock Exchange.

This marks the lowest closing price since September 2014, plunging about 78% compared to its all-time closing high of $177.51 recorded in November 2021.

Nike's slump is also evident in its recent sales trends.

Nike's sales peaked in fiscal year 2024 before plummeting by nearly 10% in fiscal year 2025.

The biggest headache is China.

Nike's sales in China have recorded a decline for eight consecutive quarters.

In the past, China was one of Nike's representative growth markets, but the situation has changed recently as the product competitiveness of local companies has increased, compounded by a sluggish Chinese consumer market.

Accordingly, Nike plans to overhaul its online distribution network in China starting in January of next year.

The plan is to halt online sales by some major distribution partners and reorganize the sales network around Nike's official stores on its own website and app, as well as Tmall, JD.com, and Douyin.

The strategy is to reduce discount competition and regain price control.

However, some projections suggest that this strategy could weigh on sales in the short term.

JPMorgan lowered its investment rating on Nike from neutral to underweight this month and also cut its target price from $47 to $40.

The reason is that the impact of sales vacuums resulting from the reorganization of China's online distribution network and the restructuring of U.S. stores could be more prolonged than expected.

In particular, JPMorgan estimated that the restructuring of the Chinese distribution network could act as a revenue headwind of approximately $1 billion.

Reported by Jung Da-eun | Video by Kim Min-ji | Graphics by Lee Jung-joo | Produced by SBS Digital News