[Photo by Declan Sun on Unsplash]
April 24, 2026 (Friday) – Yeojun Jung
Nike Inc. stock closed at $44.78 on Thursday, April 23, 2026, down 1.97%, after the footwear leader announced 1,400 job cuts and rivals Hoka, On Running, and New Balance expanded their share of the U.S. running market.
That close marks Nike's weakest finish in nearly six years, putting the stock more than 70% below its 2021 all-time high above $165.
The combined pullback matters because Nike anchors the global athletic industry, and its weakness hands running-shoe shelf space to challengers that now set prices and product cycles in the category.
For shoppers, that shift means brands like Hoka and On Running now command the premium prices and flagship status Nike once owned, reshaping the running-shoe brand hierarchy.
The Beaverton-based company disclosed the layoffs the same day, eliminating nearly two percent of its global workforce and targeting the Global Operations technology division across North America, Asia, and Europe.
CEO Elliott Hill framed the cuts as part of his Win Now turnaround, centralizing technology operations in Beaverton, Oregon, and the Nike India Technology Center.
Prior cuts of 775 roles in January 2026 and more than 1,600 in 2024 underscore sustained pressure on Nike's cost base.
Nike reported fiscal 2026 revenue of $11.3 billion on March 31, 2026, essentially flat against the prior year, with running as the only footwear category posting growth.
Sportswear fell by low double-digit percentages, and digital sales dropped nine percent after heavy promotional markdowns aimed at clearing excess inventory.
Shares slid following the Q3 release in late March 2026, adding to a three-year decline that erased more than half of Nike's stock value.
China's revenue slipped 11% during the third quarter, and executives forecast a further 20% drop in the fourth quarter as Anta and Li-Ning expanded their domestic lead.
Nike is expected to experience a two percent to four percent sales decline for the current quarter ending May 2026, extending a multi-year downturn across wholesale and direct-to-consumer channels.
Inventory reached $7.5 billion at quarter-end, pressuring gross margins as Nike cleared excess product through outlet stores and wholesale partners.
Competitors benefited from Nike's wholesale pullback between 2020 and 2022 at retailers such as Foot Locker and Dick's Sporting Goods, a pivot that created open shelf space for rising brands.
Deckers Outdoor's Hoka, Swiss-listed On Running, and Boston-based New Balance filled those shelves, building a running footwear foothold that Hill now targets as the core of Nike's recovery plan.
Adidas also outpaced Nike on stock and product momentum during the same stretch.
Hill returned to the chief executive role in October 2024 after a brief retirement, and he acknowledged on the earnings call that the turnaround had taken longer than he preferred.
The competitive pull reached Nike's executive bench on April 22, 2026, when Lululemon Athletica named longtime Nike leader Heidi O'Neill its next permanent CEO, according to Reuters.
O'Neill spent more than 25 years at Nike, most recently holding the title President of Consumer, Product, and Brand, and stepped into the Lululemon role on September 8, 2026.
She replaces Calvin McDonald, who stepped down in January 2026 to lead a beauty business, after interim co-leadership by Meghan Frank and André Maestrini.
Lululemon shares fell as much as seven percent on the announcement day and have dropped more than 21% so far this year, extending the athleisure maker's own multi-month decline.
According to Nike's internal memo, the April restructuring aims at manufacturing modernization and supply-chain automation.
Nike shares ticked up roughly 0.5% in after-hours trade following the layoff memo, a modest rebound from the Thursday close.
Analysts expect measurable results from the Win Now plan by late 2026, a timeline that hinges on fresh running-shoe launches and repaired wholesale ties.
Hill's strategy refocuses Nike on core sports such as running and soccer, faster product cycles, and a tighter partnership model with retailers the company once bypassed.
