S&P Global Ratings downgraded Nike Inc.’s credit rating to A from A+, citing a difficult turnaround and significant revenue deterioration in Greater China.
Nike is expanding its corporate restructuring, which includes further job cuts and an overhaul of its global business divisions. The company aims to save approximately $2.5 billion through the changes over the next five years.
Nike forecasts a steeper-than-expected revenue decline for the fiscal year. Sales in Greater China fell 26% in the first quarter.
Analysts have lowered their price targets, warning that the restructuring’s benefits may not materialize until fiscal 2029 and 2030. The delayed payoff is testing investor patience with Nike’s turnaround efforts.