October 12, 2026
Nike shares sank 8 percent after the company missed revenue expectations, cut its outlook, and announced layoffs.
What happened
Nike reported quarterly revenue below analyst estimates and lowered its forward guidance. The company also disclosed layoffs. The stock fell 8 percent, erasing roughly 100 billion dollars in market value. Rivals Lululemon and On Holding traded flat on the day.
Why it matters
The miss and guidance cut signal that consumer demand is softening faster than Nike expected, forcing it to cut costs. When the world's largest sportswear brand stumbles this badly, it raises questions about the health of discretionary spending globally and whether its lost market share is being captured by newer running brands.
The case against
Lululemon and On Holding shares held steady despite Nike's decline, suggesting investors see Nike's trouble as company-specific rather than an industry-wide collapse. The flat reaction in peers implies the market believes Nike is losing ground to competition, not that the consumer is falling off a cliff.
What settles it
Whether Lululemon and On Holding can maintain their momentum and hold their stock prices steady in the face of a broader consumer pullback.