JD Sports shares dip after Nike warns on sales amid slow turnaround

Investing.com -- Shares of British sportswear retailer JD Sports fell about 2% on Wednesday after Nike signaled that its turnaround remains a work in progress, projecting further revenue declines amid a steepening sales slump in China.

Nike posted a 1% revenue decline in its fiscal fourth quarter and warned of additional drops through the first half of fiscal 2027, as the company continues to wrestle with stiff competition and elevated inventory levels.

The results, while modestly ahead of expectations on the top line, did little to convince investors that CEO Elliott Hill’s nearly two-year revival effort is gaining meaningful traction.

Nike shares have fallen 35% so far this year and shed another 3% in premarket trading on Wednesday.

China remains the most acute pressure point. Sales in Greater China fell 17% on a constant-currency basis in the quarter, steepening from a 10% decline in the prior period.

Nike had projected a 20% drop three months ago, so the result was slightly better than feared, but the region continues to lose ground to domestic rivals amid weak product assortments. Greater China accounts for about 15% of Nike’s annual revenue and is its third-largest market globally.

North America revenue rose 3% in the quarter as Nike benefits from rebuilding wholesale relationships that had been pulled back under former CEO John Donahoe’s push toward direct-to-consumer sales.

On an adjusted basis, Nike earned 20 cents per share during the quarter, topping analyst estimates of 13 cents, according to LSEG data.

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