Top 2 S&P 500 Stocks to Watch After Nike's China Woes

Nike's struggles in China could spell trouble for other major U.S. consumer brands.

Apr. 3, 2026 at 5:05am

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A highly detailed, photorealistic studio photograph of a polished metal sculpture in the shape of a Chinese dragon, resting on a clean white background and dramatically lit from the side, conveying the complexity and importance of the Chinese consumer market for major U.S. brands.A premium, symbolic sculpture evokes the power and mystery of the Chinese consumer market, as major U.S. brands navigate shifting economic tides.NYC Today

Nike's recent earnings report revealed a 10% year-over-year decline in its Greater China segment revenue, with management guiding for a 20% annual drop in the current quarter. This has raised concerns about the broader health of the Chinese consumer market and could spell trouble for other major U.S. brands that rely heavily on growth in the region, such as Lululemon Athletica and Tapestry.

Why it matters

Nike's struggles in China are a potential canary in the coal mine for other U.S. consumer-goods companies that have come to depend on the Chinese market for a significant portion of their growth. Investors will be closely watching Lululemon and Tapestry to see if they face similar challenges in the region.

The details

Nike posted earnings that beat Wall Street expectations in its fiscal Q3, but its Greater China segment revenue fell 10% year-over-year on a currency-adjusted basis. Management guided for a 20% annual decline in that segment in the current quarter. This news sent Nike's stock down more than 15%, with ripple effects across the consumer-goods sector. Lululemon has relied on strong growth in China to power its overall sales, with the region expected to see 20% growth this year. However, Lululemon's North America segment is projected to decline 1-3%. Tapestry, the parent company of Coach and Kate Spade, saw a 34% surge in Greater China revenue in its most recent quarter, providing 13.7% of its total revenue. Tapestry expects over 25% growth in China this fiscal year.

  • Nike reported its fiscal Q3 results on March 31, 2026.
  • Lululemon published its Q4 report in March 2026.
  • Tapestry reported its fiscal Q2 results on Dec. 27, 2025.

The players

Nike

An American multinational corporation that is engaged in the design, development, manufacturing, and worldwide marketing and sales of footwear, apparel, equipment, accessories, and services.

Lululemon Athletica

A Canadian athletic apparel company, founded in 1998, that produces yoga pants and other athletic wear.

Tapestry

An American multinational corporation that owns the Coach, Kate Spade, and Stuart Weitzman brands.

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What they’re saying

“While Nike's overall revenue was down approximately 3% on a currency-adjusted basis in fiscal Q3, it's the performance of and forward guidance for the company's Greater China segment that really stood out.”

— Keith Noonan, Author

“Lululemon's China Mainland geographic segment grew sales 28% annually on a currency-adjusted basis last year.”

— Keith Noonan, Author

“Tapestry's portfolio of branded luxury goods is performing exceptionally well in the [Chinese] region, and it looks poised for more strong double-digit growth throughout the current fiscal year.”

— Keith Noonan, Author

What’s next

Investors will be closely watching Lululemon and Tapestry's upcoming earnings reports for signs of whether they are facing similar challenges to Nike in the Chinese market.

The takeaway

Nike's struggles in China raise concerns about the broader health of the Chinese consumer market and could signal trouble ahead for other major U.S. brands that have come to rely heavily on growth in the region. Lululemon and Tapestry, in particular, will be in the spotlight as investors assess the potential ripple effects.