Nike stock falls after weak China sales, margin pressure and cautious outlook despite earnings beat. Investors worry about growth and tariffs.

Nike has the leading brand in the industry, providing an advantage it can lean on.

The Dow Jones Industrial Average climbed 0.6% to 48,731.16, while the S&P 500 added 0.32% to close at 6,932.05.

Nike posted modest revenue growth and an earnings beat, but operational headwinds—ranging from elevated marketing spend to tariff-driven margin

A Fool since 2019, and a graduate of Cal State LA with a B.S. in Finance and M.A. in Economics. Parkev is an adjunct professor of Finance and enjoys reading about financial and economic history. You'll often find him writing about stocks in the consumer goods and technology sectors.

The brand is under real earnings and China pressure. But flat sales with margin beats, a nearly 2.8% dividend, and a 36% upside to Wall Street’s average target still argue for a choppy recovery rather than a broken story.

Although the company topped earnings and revenue expectations, the stock ticked lower in after-hours trading Thursday, reflecting investors’ disappointment over declining profits and lackluster sales in China.

Despite double-beat Q2 results and strong North American sales, Nike faces ongoing declines in key international segments. Read why NKE stock is a Hold.