What's Wrong With Nike Stock?

Times are tough for Nike (NYSE: NKE) shareholders. The company's share price is down roughly 42% year to date as of this writing, and it trades off roughly 79% from its lifetime high. Over the last 10 years, the stock is down 33.5%. Meanwhile, the S&P 500's level has risen nearly 260%. What's behind the footwear and apparel leader's stock collapse?

The core growth bets that Nike put in place a decade ago have not panned out. While the company's major investment in the Chinese market initially seemed to be yielding strong results, conditions have since soured. In addition to tariffs and trade-war dynamics creating headwinds and manufacturing repositioning, Chinese shoppers have shown a growing preference for domestic brands.

Image source: Getty Images.

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