Nike Inc. (NKE  ), the sportswear behemoth, is grappling with its most extended losing streak since its inception in December 1980, as shares continue their downward spiral for the ninth consecutive session.

Demand worries in China and surging inventories weighing on industry profitability are fueling this relentless slump, with the retailer wiping out $14 billion of market cap over the last two weeks, as noted by Bloomberg Tuesday.

Nike's year-to-date decline of 14% contrasts starkly with the impressive 29% gain recorded by the Consumer Discretionary Select Sector SPDR Fund (XLY  ).

Heightened concerns about China's slower growth trajectory are contributing to the downward momentum, as Matt Maley, chief market strategist at Miller Tabak + Co, points out. Investors are recalibrating their expectations about China's role in propelling global growth, impacting companies with extensive exposure to the region.

Domestically, a squeeze on discretionary spending by U.S. consumers is further challenging Nike's resilience. The company, known for its innovative marketing and sought-after merchandise, has been resorting to discounts to maintain consumer engagement in an increasingly competitive landscape.

Wall Street's Dimming Outlook For Nike

Wall Street analysts have adjusted their expectations for Nike stock. The one-year average price target, once pegged at $137 in May of this year has shrunk to the $129, reflecting declining confidence in the company's outlook.

As the industry grapples with uncertainty, all eyes are now on Foot Locker Inc.'s (FL  ) earnings report Wednesday. This report holds valuable insights for Nike given Foot Locker's substantial reliance on the brand.

In 2022, Foot Locker procured a significant 65% of its athletic merchandise from Nike. Analysts like Tom Nikic from Wedbush view Foot Locker's performance as a pivotal indicator that could foreshadow Nike's future trajectory.