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Market hostility toward Nike has reached a record level as the athletic apparel giant approaches what could be another grim earnings report on Thursday. The clearest sign is an extraordinary surge in traders betting against the shares.

Short interest in Nike reached an all time high of 87 million shares, according to new research from S3 Partners. That figure has climbed sharply from 55 million shares over the past year.

The short interest percentage of Nike’s float has moved from under 3% to over 7%. Investors who short a stock are positioning for its value to decline.

The S3 Partners team said, "Importantly, short sellers have persistently added exposure as NKE shares declined, rather than using the weakness to unwind positions and book profits. Shorts are sitting on an estimated $1.4 billion in mark-to-market paper gains so far in 2026."

Those figures show that short sellers have continued increasing their exposure even as Nike shares weakened. Their paper gains also give them little apparent reason to retreat before the earnings release.

Evercore ISI analyst Michael Binetti said in a Monday note that concerns surrounding Nike are numerous. His assessment focused heavily on deteriorating revenue expectations and possible weakness extending further into fiscal 2027.

"Nike already significantly lowered its embedded China assumptions, and talked about improving innovation for Spring 2027 … together resulting in current consensus assuming revenues will bottom in F1H27 at -4% year over year, and then improve to flat year over year in F2H27. Since the F4Q call, we think the brand has seen cancellations or negative order revisions from retailers for Spring 2027 that we think will translate to further negativity in Nike's F2H27 revenue outlook."

Binetti also raised the possibility that Nike could signal a weaker revenue outlook for the second half of fiscal 2027. The company has indicated that it would probably wait until its November analyst day before restoring annual guidance and presenting a full fiscal 2027 picture.

"While Nike has hinted that it would likely not reintroduce annual guidance (and give a full picture for FY27) until the November analyst day, we think with a new CFO joining, it might make sense to signal F2H27 revenues lower on this call—especially if the company wants to keep investors focused on its longer-term turnaround story at the November analyst day (and not get tangled up in near-term revisions on that important day)."

Another weak earnings report would compound a punishing 12 month stretch for shareholders. Nike stock has fallen about 27% since the company’s last earnings report on May 28, according to Yahoo Finance AlphaSpace data.

The shares are currently trading near a 52 week low and stand 55% below their peak from a year ago. Nike’s overall market value has been roughly cut in half since its 2021 highs.

The company has also suffered setbacks beyond its stock chart. Soccer icon Kylian Mbappé ended his long term business relationship with Nike this month and announced that he would join Swiss sports company On.

Nike was removed from the S&P 100 last week, ending an 18 year run in the index. The departure added another conspicuous blow during a period already marked by collapsing investor confidence and intensifying short interest.

Dick’s Sporting Goods delivered another warning in late August. The retailer discussed pressure on its business that was partly connected to Nike heavily discounting product that was moving slowly.

Nike’s latest reported results also gave investors reason for caution. In late June, the company disclosed fiscal fourth quarter revenue of $11 billion, representing a 1% decline on a reported basis and a 4% decrease on a currency neutral basis.

The combination of weak revenue, retailer concerns, a falling share price and record short interest has created a harsh setting for Thursday’s report. Short sellers have continued pressing their bets while Nike attempts to keep attention on its longer term turnaround story.

DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.