Nike Inc. shares fell more than 3% on Monday, hitting a fresh 52-week low of $39.41. The decline was sharper than the broader market move. The Nasdaq was up 0.24%, while the S&P 500 was down 0.15%.
Nike also fell more than the Consumer Discretionary sector, which declined about 0.8%. The latest drop has put Nike stock at an important technical support level.
On Holding results add pressure on Nike
One of the main reasons behind the selling pressure is the latest outlook from On Holding AG, a major premium sportswear rival of Nike. On Holding reported mixed second-quarter financial results, which raised concerns about the strength of demand in the premium sportswear market.
The company reported quarterly earnings of 44 cents per share, beating the analyst consensus estimate of 41 cents per share. However, its quarterly sales came in at $1.076 billion, below the analyst estimate of $1.110 billion. The sales miss appears to have added pressure to sportswear stocks, including Nike.
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On Holding’s 2026 outlook also worries investors
On Holding gave its full-year 2026 sales guidance at $4.390 billion to $4.503 billion. The midpoint of that range is below the market estimate of about $4.490 billion, according to the Benzinga.
A weaker-than-expected revenue outlook can make investors more cautious about growth in the sportswear industry. On Holding founder and Co-CEO David Allemann said the company is showing that a brand can achieve global scale while keeping its premium positioning.
Nike remains below key moving averages
Nike’s technical picture remains weak as the stock is trading below several major moving averages. The stock is currently 5.3% below its 20-day simple moving average (SMA) of $41.80. It is 7.4% below its 50-day SMA of $42.76.
Nike is also 9.8% below its 100-day SMA of $43.89. Most importantly, the stock is 25.4% below its 200-day SMA of $53.09. Staying below these levels suggests that the longer-term trend remains bearish unless Nike can move back above these key averages.
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Momentum indicators remain weak
Nike’s momentum is also not showing a strong recovery yet. The MACD remains below its signal line, while the histogram is negative. This suggests that upward momentum has weakened compared with the stock’s earlier move higher. In simple terms, buyers have not yet shown enough strength to change the current downward trend.
Nike’s moving-average pattern is still bearish
The stock’s moving-average setup is adding to the negative picture. Nike’s 20-day SMA is below its 50-day SMA, which shows that the stock is weak in the short term. The stock is also still in a death cross pattern. This happens when the 50-day moving average falls below the 200-day moving average. Nike first entered this pattern in November 2025, and it has not ended yet. Traders watch this pattern because it can be a sign that the stock may remain weak for a longer time.
Nike has now fallen below the $40 area
Another important level for Nike is around $40, which was near its previous 52-week low. The stock has now dropped below that area and reached $39.41.If Nike tries to recover, the old $40 support area could become resistance. This means sellers could return if the stock struggles to move back above that level.
Why Nike stock is under pressure
The latest decline is being driven by a combination of weak technical signals and concerns about the sportswear market. On Holding’s weaker-than-expected sales and cautious 2026 revenue outlook added fresh pressure to the sector.
At the same time, Nike is already trading below its major moving averages and remains in a bearish technical setup. The new 52-week low of $39.41 shows that investors are still struggling to regain confidence in the stock.
