Nike od ledna omezí v Číně tisíce online distributorů a přesune prodej hlavně na vlastní web, aplikaci a oficiální obchody na Tmall, JD.com a Douyin. Cílem je zjednodušit digitální prodej a získat zpět kontrolu nad cenami.
Nike is planning to cut off thousands of online distributors in China beginning in January as the sneaker giant looks to clean up what's become a messy digital marketplace and get the region back to growth, the company said Tuesday.
Starting next year, Nike's online footprint will shift primarily to the retailer's official website and app, and the storefronts it operates on Tmall, JD.com and Douyin, some of China's largest online marketplaces and social platforms.
Currently, consumers can shop Nike through all of those channels as well as thousands of other online storefronts powered by Nike's brick-and-mortar partners in the region and a network of secondary distributors. While the vast digital network has led to widespread consumer access to Nike's products, it's also created an inconsistent branding and pricing experience and hampered the company's efforts to reverse a sales decline in the region.
"These new flagships will serve as the single, elevated destination for Nike within these ecosystems, with clearer product presentation, stronger storytelling and more connected consumer journeys," Cathy Sparks, Nike's new vice president and general manager of Greater China, wrote in a letter. "This is about strengthening the platforms where consumers already begin and end their shopping journey, making sure those experiences are direct, consistent and unmistakably Nike."
"This is not about reducing access. It is about reducing fragmentation and strengthening the consumer journey," she said. "When the experience is consistent, the brand becomes stronger."
Nike's plans to pare back its online footprint are designed to create a better, more consistent experience for the consumer and allow it to take back pricing control online. However, there are also concerns it could lead to a material drop in revenue in a region that's already shrunk about 30% in the last five years.
News about Nike's plans to cut off online distributors first came to light late last month in a local Chinese media report. It prompted a note from BNP Paribas equity analyst Laurent Vasilescu, who wrote the move is reminiscent of Nike's ill-fated decision to cut off wholesalers in North America, which contributed to its collapse of market dominance in the region, as well as steep declines in sales and margins.
"This strategy opened up shelf space for competitors and the strategy ended poorly for Nike. We believe the same could happen if it takes the same approach in China," Vasilescu wrote last month, adding that BNP was sticking with its underperform rating for the company. "We don't think Nike has a distributor problem but rather a product problem which also applies in other markets."
The change is also expected to hurt Nike's brick-and-mortar partners in the region, which have expanded their online presence in recent years to grow their own businesses.
Still, Topsports, Nike's largest distributor in mainland China, said it supports the company's decision.
"Topsports has worked with Nike for 27 years based on the principle of mutual benefit and shared growth," Topsports CEO Yu Wu said in a statement. "This adjustment will bring some short-term pressure to our business. But we firmly believe that, over the medium- to long-term, this direction will help promote a healthier, more orderly, and more sustainable retail ecosystem in China, while further improving consumer experience and product appeal."
"Looking ahead, we will continue to work closely with Nike, leveraging our strengths in offline retail operations, local consumer service, and deep market development across city tiers," Wu said. "Through new concept sport stores and high-quality physical retail experiences, we will bring Chinese consumers richer and more meaningful sport experiences."
Nike (NKE 1.17%) has been struggling for years, and those challenges continued in the first half of the year, pushing the stock lower.
Nike told investors that its hoped-for turnaround would take longer than expected; revenue continued to be flat; its CFO said it was stepping down, and tariff-related expenses torched its profits.
As a result, the stock lost 36% over the first half of the year, according to S&P Global Market Intelligence.
As you can see from the chart below, the stock's declines came primarily in March and April, and it fell sharply following its third-quarter earnings report at the end of March.
NKE data by YCharts
Nike's slide continues Nike's issues in the first half of the year will be familiar to anyone who has followed the stock in recent years.
Investors have been hopeful that Elliott Hill, who took over as CEO nearly two years ago, could turn the business around, but that has yet to materialize.
In the first half of the calendar year, tariffs hit the company's profits sharply. In its third-quarter earnings report, revenue was flat at $11.3 billion, and gross margin fell 130 basis points to 40.2%.
The stock fell 15.5% on April 1 after the report came out, its worst day of the year. However, investors seemed to be more concerned about its forecast of declining revenue in the fourth quarter and comments on the earnings call that it didn't expect gross margin to return to growth until the second quarter of fiscal 2027, which ends this November. Investors were hopeful that it would get back to margin expansion sooner than that.
Additionally, the stock sank in March as the war in Iran weighed on stocks broadly, especially consumer discretionary names like Nike. Nike is sensitive to inflation, which can impact consumer spending, and the war also has the potential to disrupt supply chains.
Image source: Getty Images.
What's next for Nike Nike stock initially plunged on its fourth-quarter earnings report, released on June 30, falling double-digits in the after-hours session. However, the stock finished up 5% the following day, a sign that investors may believe that Nike is bottoming out.
The results were again mostly underwhelming, with revenue down 1%, but investors seem convinced that the new fiscal year would bring a return to margin expansion, which it continues to expect in the second quarter.
Nike's turnaround is showing results in some categories as it's now growing and gaining market share in running, but there's still a lot of work to be done. At this point, it's hard to call the stock cheap even as it's fallen more than 75% from its peak, but there's certainly upside potential if it can return to growth on the top and bottom lines.
NIKE rozšiřuje své inovační portfolio o nové běžecké a tréninkové produkty, včetně NIKE Mind a Aero-FIT. Cílem je podpořit poptávku v segmentu Sportswear a Jordan.
Key Takeaways NIKE is expanding its innovation pipeline with new footwear and technologies across sports categories.NKE plans to extend NIKE Mind and Aero-FIT while launching products tied to running and athletes.NIKE expects stronger performance categories to support Sportswear and Jordan demand recovery. NIKE, Inc.’s (NKE - Free Report) innovation pipeline refers to its strategy of introducing new products, technologies and designs to reignite consumer interest and boost sales growth. As innovation has become a key pillar of NKE’s turnaround strategy, it can help it overcome challenges, including weaker demand, heightened competition and slower digital sales.
NIKE is expanding beyond its traditional franchises by introducing performance-focused footwear and apparel, such as the Pegasus Premium, Vomero 18 and other running and training products. Under its “Sport Offense” strategy, NIKE is increasing investments in key sports categories, including running, basketball, football and women’s sports. The company is emphasizing performance innovation to strengthen its connection with athletes.
The company views NIKE Mind as one of its most promising innovation platforms and plans to expand it beyond its current offerings beginning in spring 2027. Initially introduced in football kits, NKE’s Aero-FIT technology is set to expand into running apparel, where it is expected to enhance athletic performance and comfort. Its upcoming launches, including Caitlin Clark-branded products and the latest Free MetCon line, are expected to strengthen NIKE’s position in key performance categories.
The goal is to develop a steady stream of innovative footwear, apparel and accessories tailored to consumer preferences. Management believes that strong performance in categories such as running, basketball and football will create a “halo effect” for its Sportswear and Jordan brands, which together account for nearly half of the company’s revenues. To revive growth in these segments, NIKE is repositioning these businesses. NIKE Sportswear plans to launch more than a dozen new footwear styles in the second half of fiscal 2027, while leveraging its performance-focused innovations to drive demand.
Overall, NIKE’s strong innovation pipeline has the potential to reignite consumer demand, support higher full-price sales and restore long-term growth. However, the success of this strategy will ultimately depend on how consumers respond to the company’s new product launches in the coming quarters.
NKE’s Competitionlululemon athletica inc. (LULU - Free Report) continues to benefit from the progress with its Power of Three X2 growth strategy. LULU remains focused on its long-term growth strategy, which centers on continuous product innovation, enhancing the guest experience and expanding its international presence to drive sustainable growth. lululemon continues to introduce new fabrics and performance-focused products across its core women’s and men’s businesses while expanding into adjacent categories, such as footwear and accessories.
adidas AG (ADDYY - Free Report) is focused on strengthening its brand appeal through continuous product innovation, operational excellence and strategic growth initiatives. ADDYY remains committed to enhancing profitability and long-term competitiveness by maintaining inventory discipline, improving operational efficiency and advancing its sustainability efforts. In addition, adidas is expanding its global footprint through localized market strategies, increased digital investments and an ongoing expansion of its retail store network.
NKE’S Price Performance, Valuation and EstimatesShares of NIKE have lost 33.1% in the past six months compared with the industry’s decline of 28.1%.
Image Source: Zacks Investment Research
From a valuation standpoint, NKE trades at a forward price-to-earnings ratio of 23.79X compared with the industry’s average of 20.63X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NKE’s fiscal 2027 and fiscal 2028 earnings implies year-over-year growth of 10.8% and 35.4%, respectively. The company’s EPS estimate for fiscal 2027 and fiscal 2028 has moved south in the past seven days.
It will take roughly 6,090 shares to earn $10,000 a year in dividends from Nike (NKE 1.31%). This is based on its current quarterly payment of $0.41, or a forward-12-month dividend of $1.64 per share.
Nike's dividend yield is the highest in its history. The company recently raised the quarterly payment by 3%, marking 24 consecutive years of dividend increases.
Image source: The Motley Fool.
But the high yield doesn't come without risks. The stock has fallen 76% from its previous peak due to weaker consumer spending and lower revenue growth.
The weaker revenue isn't the biggest problem for Nike -- it's lower margins. To support continued dividend payments, the company has to pay out more cash than it is taking in. Over the last year, Nike paid out roughly $2.4 billion in dividends but generated just over $1 billion in free cash flow. That's obviously not sustainable in the long run.
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Free cash flow is down partly due to restructuring costs related to turnaround efforts and investment in stores and products. These are largely transitional, so Nike should be able to recover its free cash flow fairly quickly. I wouldn't be too alarmed about the high payout ratio right now.
Nike also has approximately $9 billion in cash and short-term investments on its balance sheet, with $7.9 billion in total debt. More cash than debt is solid, but investors will need to closely follow quarterly earnings reports. Nike needs to show progress in improving margins and boosting free cash flow to cover the dividend payments.
John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nike. The Motley Fool has a disclosure policy.
Nike je asi 44 % pod 52týdenním maximem a CEO Elliott Hill nakupuje akcie poblíž letošních minim. Čtvrtletní zisk ale výrazně nafoukl jednorázový refund cla.
Shares of Nike (NKE +3.72%) closed Friday at about $44, up nearly 4% and extending a rebound that began when the company reported fiscal fourth-quarter results at the end of June. Even after that bounce, the stock sits about 44% below its 52-week high of $80.17.
Adding to the intrigue is CEO Elliott Hill, who has been putting his own money into the stock near its lows. This begs the question: Is this a good time to follow the CEO into the stock?
Image source: The Motley Fool.
A profit built mostly on a refund Nike's fiscal fourth quarter of 2026 (the period ended May 31, 2026) looked, at a glance, like a breakout. Revenue came in at $11.0 billion, and net income jumped 407% year over year to $1.1 billion. Diluted earnings per share reached $0.72.
But most of that bottom-line surge traces to a single item. Of the $0.72 in earnings per share, $0.52 came from an expected recovery of import duties Nike had paid under the International Emergency Economic Powers Act (IEEPA) -- a nearly $1 billion accounting benefit booked after courts struck down the tariffs. Strip it out, and the company earned about $0.20 per share from running its business.
The same distortion shows up in margins. Nike's gross margin jumped about 9 percentage points, to 49.2%. But almost all of that came from the tariff recovery. Strip it out, and the underlying gross margin was roughly flat -- near 40%, about where it sat a year earlier.
Fourth-quarter revenue fell 1% year over year, and dropped 4% on a currency-neutral basis, which strips out the effect of a weaker dollar. That currency-neutral decline widened as the year went on, from about 1% in the fiscal first quarter to 4% in the fourth. For the full year, sales were essentially flat -- a stabilization after the prior year's steep drop, not yet a recovery. So the reported steadiness owed something to currency, and the profit jump owed almost everything to a one-time refund.
North America is the part that's turning Underneath the noise, though, one figure suggests the turnaround is more than a story management is telling. Revenue in North America, Nike's largest market, rose 3% year over year to $4.83 billion in the quarter, and climbed 5% for the full fiscal year. After a long slide, Nike's home market is finally growing again, led by a rebound in its wholesale channel as the company rebuilds relationships with the retail partners it had spent years walking away from.
Meanwhile, Greater China, once one of Nike's most dependable growth drivers, fell another 12% in the quarter and 11% for the full year. And Nike Direct, the company's own stores and app, kept sliding, as management deliberately routes more sales back through wholesale partners.
In other words, North America is inflecting, but it hasn't yet pulled the whole company back to growth.
Then there's the insider buying. CEO Elliott Hill has twice put about $1 million of his own money into Nike shares on the open market -- once in late December, near $61 a share, and again in April, near $42, close to the stock's low. Other insiders bought around the same time, including board member Tim Cook -- the CEO of Apple.
Of course, insider purchases guarantee nothing about the stock's prospects. Even inside executives can misjudge their own companies. But a chief executive buying more as the price falls at least signals that the people closest to the business think it's worth more than the market does. So, it's at least worth some consideration.
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But what about the stock's valuation?
At about $44, Nike trades at about 21 times earnings. But that multiple is inflated by the one-time tariff benefit baked into the past year's profit. Strip it out, and the price-to-earnings ratio is closer to 28 -- hardly a bargain for a business whose sales are still shrinking outside North America.
So, is the stock a buy here? I'm encouraged, but I'm not buying yet. The recovery in North America and Hill's willingness to buy near the lows are the most convincing signs of a turnaround Nike has offered investors in a while. But the headline profit leans on an accounting item that won't return, and the parts of the business that most need to inflect -- Greater China and the direct-to-consumer channel -- still haven't. At this valuation, I'd want to see companywide sales turn positive on a currency-neutral basis and China stop falling before treating the turnaround as more than early. Until then, I'm content to watch a genuinely improved story get a quarter or two closer to proving itself.
NIKE Direct ve 4. čtvrtletí fiskálního roku 2026 klesly tržby o 7 % na 4,1 miliardy USD. Naopak velkoobchod vzrostl o 4 % na 6,6 miliardy USD, hlavně v Severní Americe.
Key Takeaways NKE's recovery is uneven as running, training and North America improve, but Sportswear and China drag.NIKE Direct revenues fell 7% in Q4 fiscal 2026, with Digital down 12% and owned stores down 7%.Wholesale offers relief, rising 4% in Q4 fiscal 2026 and 6% for the year, led mainly by North America. NIKE, Inc. (NKE - Free Report) is trying to turn a narrower set of operating wins into a broader recovery. The problem is that the gains are still uneven.
Running, global football, training and North America are improving. Sportswear, Jordan Streetwear, NIKE Direct and Greater China continue to pressure demand, pricing and near-term visibility.
NKE Recovery Is Split by CategoryThe clearest progress is coming from performance categories. Running has delivered five consecutive quarters of double-digit growth and added roughly $1 billion over that span. Performance product grew mid-single digits in fiscal 2026, with positive retail sales comparisons across running, training and global football in the fourth quarter.
Management expects growth to expand beyond running into training, basketball and ACG in fiscal 2027. Still, Sportswear and Jordan Streetwear remain weak. Sell-through is challenged, discounting is elevated and future order books are being affected.
NIKE Direct Still Drags on GrowthNIKE Direct remains one of the biggest gaps in the recovery. In the fourth quarter of fiscal 2026, NIKE Direct revenues fell 7% on a reported basis and 9% on a currency-neutral basis to $4.1 billion. NIKE Brand Digital declined 12%, while NIKE-owned stores were down 7%.
The weakness matters because Sportswear and Jordan Streetwear together represent about half of NIKE’s revenues. NIKE is reducing promotions, repositioning digital as a premium business and working to elevate 50% of its owned-store fleet by the end of fiscal 2027. That reset can help brand health, but it also slows the pace of revenue improvement.
NKE Wholesale Rebound Offers Some ReliefWholesale is providing a partial offset. Fourth-quarter fiscal 2026 wholesale revenues rose 4% on a reported basis and 1% on a currency-neutral basis to $6.6 billion, driven mainly by North America. In fiscal 2026, wholesale revenues increased 6% on a reported basis and 4% on a currency-neutral basis.
NIKE is rebuilding partner relationships through curated assortments, better in-store presentation and sport-led storytelling. DICK’S Sporting Goods Inc.’s (DKS - Free Report) Foot Locker is an important marker in that process, as NIKE’s revenue growth and retail sales comparisons as the retailer turned positive for the first time in four years. adidas AG (ADDYY - Free Report) , a major athletic footwear and apparel peer, remains a useful comparison point for investors watching whether NIKE can regain product momentum while protecting brand premium.
NIKE China Reset Clouds Near-Term VisibilityGreater China remains a major overhang. Fourth-quarter revenues in the region fell 12% on a reported basis and 17% on a currency-neutral basis to $1.3 billion. NIKE Direct declined 14%, including a 25% drop in NIKE Digital and a 9% decrease in NIKE stores, while wholesale declined 19%.
In fiscal 2026, Greater China revenues declined 11% on a reported basis and 13% on a currency-neutral basis to $5.85 billion. NIKE has seen digital full-price realization improve and inventory decline by double digits, but management expects near-term revenue trends in the region to remain in line with recent performance.
NKE Signals Point to Ongoing CautionThe bottom line is that NIKE’s recovery has real operational green shoots, but not enough broad-based strength yet. Performance categories and wholesale are improving, while Sportswear, Jordan Streetwear, direct channels and China continue to weigh on the pace of a cleaner rebound.
NKE currently carries a Zacks Rank #4 (Sell). The stock also has a Value Score of D, Growth Score of F, Momentum Score of F and VGM Score of F. Style Scores are designed to complement the Zacks Rank, with stronger grades generally pointing to more favorable value, growth or momentum characteristics.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For NIKE, those signals support a cautious stance. A weak Rank reflects pressure in earnings estimate trends, while weak Style Scores suggest limited support from valuation, growth and momentum factors. Until category strength spreads more widely across channels and geographies, the stock outlook remains tied to execution proof rather than early signs of improvement.
NIKE hlásí pět čtvrtletí dvojciferného růstu v běhu, ale slabý NIKE Direct a tlak v Greater China brzdí obrat. Hrubá marže ve 4. čtvrtletí fiskálního roku 2026 vzrostla o 890 bazických bodů na 49,2 % díky očekávanému návratu cel.
Key Takeaways NKE's Sport Offense shifted 8,000 teammates into vertical sport teams to sharpen execution.Running has logged five straight quarters of double-digit growth, while lifestyle remains weak.NKE's margin path is clouded by tariff assumptions, lower markdowns and tighter inventory control. NIKE Inc. (NKE - Free Report) is trying to move past fiscal 2026 with a sport-led model and cleaner marketplace. The reset is not linear.
Performance categories, wholesale repair and North America are improving. Yet tariffs, NIKE Direct weakness and Greater China pressure keep the recovery incomplete.
NKE Sport Offense Is Reshaping ExecutionNIKE’s Sport Offense is central to its next phase. The structure moved about 8,000 teammates into vertical sport teams, creating smaller cross-functional groups focused on specific consumer communities.
The goal is faster decisions, sharper product work and more relevant storytelling across product, brand, marketplace and operations. NIKE is trying to rebuild growth through execution and sport authenticity rather than broad promotions.
Management expects core Win Now actions to sunset by the end of the calendar year. That would shift more emphasis to Sport Offense as the operating model guiding Nike, Jordan and Converse.
NKE Performance Demand Is Beating LifestyleThe clearest trend in NIKE’s portfolio is the split between performance and lifestyle. Running has delivered five consecutive quarters of double-digit growth and added roughly $1 billion over that period.
Performance product grew mid-single digits in fiscal 2026. In fourth-quarter fiscal 2026, running, training and global football posted positive year-over-year retail sales comparisons.
Sportswear and Jordan Streetwear remain the drag. Sell-through is still challenged, affecting discounting and future order books. Together, those businesses represent about half of NIKE’s revenue, which makes their recovery critical.
That split also shapes how investors may compare NIKE with adidas AG (ADDYY - Free Report) and Birkenstock Holding plc (BIRK - Free Report) . adidas remains a relevant global athletic competitor, while Birkenstock gives investors another footwear name to watch within the broader shoes and retail apparel space.
NKE Margin Path Depends on Tariff PressureNIKE’s fourth-quarter fiscal 2026 gross margin expanded 890 basis points to 49.2%. That headline number benefited from a 900-basis-point gain tied to the expected recovery of International Emergency Economic Powers Act tariffs. In fiscal 2026, gross margin expanded 20 basis points to 42.9%.
Excluding that benefit, gross margin would have been 40.2%, down 10 basis points year over year. That makes the margin trend more complicated than the reported figure alone suggests.
Management expects gross margin expansion to begin in the first quarter of fiscal 2027. Still, the outlook assumes incremental tariff rates of 10% through the end of July and 15% thereafter.
Reduced markdowns and better operating leverage also matter. NIKE is lowering digital off-price activity, tightening buys and managing inventory more closely, but tariff volatility remains a cost headwind.
NIKE Channel Mix Is Shifting AgainNIKE’s channel strategy is moving back toward a more balanced marketplace. Wholesale revenues grew 6% on a reported basis and 4% on a currency-neutral basis in fiscal 2026.
In fourth-quarter fiscal 2026, wholesale revenues rose 4% reported and 1% currency neutral, led by North America. Revenue growth and retail sales comparisons with Foot Locker turned positive for the first time in four years.
NIKE Direct remains under pressure. NIKE Direct revenues in fourth-quarter fiscal 2026 declined 7% reported and 9% currency neutral, including a 12% drop in NIKE Brand Digital and a 7% decline in owned stores.
The company is reducing promotions and trying to restore a premium experience across digital and physical retail. A healthier wholesale-direct mix could improve demand visibility, but only if Direct stops weakening.
NKE Scorecard Shows Trend Risks Remain HighNIKE’s emerging trends are meaningful, but the investment scorecard still points to caution. The company has visible progress in running, global football, training, wholesale execution and North America, yet the recovery is not broad enough.
Greater China remains in reset mode. Fiscal fourth-quarter revenues in the region declined 12% reported and 17% currency neutral, with NIKE Direct, digital and wholesale all lower.
NKE currently carries a Zacks Rank #4 (Sell). The stock also has a Value Score of D, Growth Score of F, Momentum Score of F and VGM Score of F.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Rank emphasizes earnings estimate revision trends, while the Style Scores help assess value, growth and momentum characteristics. This combination does not erase NIKE’s strategic progress, but it suggests the stock still lacks the near-term support investors typically seek before treating a turnaround as investable.
Key Takeaways NKE's wholesale revenues rose 4% in Q4 fiscal 2026, led by strength in North America.NIKE is rebuilding wholesale partnerships while reducing inventory and promotional activity. NKE's Win Now strategy is strengthening product innovation, brand engagement and marketplace execution. NIKE, Inc. (NKE - Free Report) has been making efforts to drive growth at its wholesale segment. The company is rebuilding its wholesale partnerships by expanding its reach across retail channels and enhancing its presence in the marketplace. It is also making significant investments in its physical retail network, refreshing more than 15,000 wholesale locations worldwide to improve product presentation and the overall consumer shopping experience.
NIKE is streamlining inventory, reducing promotional activity and investing in its wholesale network to create a healthier and more profitable distribution channel. While challenges persist in categories such as Sportswear and Jordan, as well as in markets like Greater China, the improving wholesale performance suggests that NIKE is making meaningful progress toward restoring growth. NIKE continues to remain under pressure in Greater China as it restructures its inventory and marketplace.
Hence, the company’s wholesale business is currently showing encouraging signs, with the segment’s revenues increasing 4% on a reported basis and 1% on a currency-neutral basis to $6.6 billion in fourth-quarter fiscal 2026. Wholesale trends improved, helping offset weakness in NIKE Direct. Growth was mainly driven by North America, partly offset by lower revenues in Greater China. For the fiscal year, wholesale revenues grew 4%, led by double-digit growth in North America.
Healthy demand for its performance-focused products and improving marketplace conditions have been driving results. Key partners are showing better performance. Management highlighted that sales and retail sell-through at Foot Locker turned positive for the first time in four years, suggesting stronger consumer demand and healthier inventory at retail partners.
The company continues to execute its "Win Now" turnaround strategy, which focuses on strengthening culture, accelerating product innovation, reinforcing brand strength and enhancing consumer engagement. NIKE is actively reducing excess inventory, scaling back promotional activity and optimizing shipments to better match product supply with consumer demand, helping create a healthier marketplace while supporting long-term profitability.
NKE’s Competitionlululemon athletica inc. (LULU - Free Report) continues to benefit from the progress with its Power of Three X2 growth strategy. LULU remains focused on its long-term growth strategy, which centers on continuous product innovation, enhancing the guest experience and expanding its international presence to drive sustainable growth. lululemon is experiencing robust international momentum, with China and other global markets driving faster growth.
adidas AG (ADDYY - Free Report) is focused on strengthening its brand appeal through continuous product innovation, operational excellence and strategic growth initiatives. ADDYY remains committed to enhancing profitability and long-term competitiveness by maintaining inventory discipline, improving operational efficiency and advancing its sustainability efforts. In addition, adidas is expanding its global footprint through localized market strategies, increased digital investments and an ongoing expansion of its retail store network.
NKE’S Price Performance, Valuation and EstimatesShares of NIKE have lost 33.5% in the past six months compared with the industry’s decline of 25.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, NKE trades at a forward price-to-earnings ratio of 23.72X compared with the industry’s average of 20.73X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NKE’s fiscal 2027 and fiscal 2028 earnings per share implies year-over-year growth of 13.9% and 32.5%, respectively. The company’s EPS estimate for fiscal 2027 and fiscal 2028 has moved south in the past seven days.
Nike má dividendový výnos 3,7 %, ale volný peněžní tok za posledních 12 měsíců klesl o 65 % na něco přes 1 miliardu USD. Firma sice drží 7,5 miliardy USD v hotovosti, přesto je krytí dividendy slabší.
Nike's (NKE +2.39%) iconic global brand is not delivering the steady growth investors are used to. The stock has been in a downward spiral since hitting an all-time high during the COVID-19 pandemic and has fallen another 32% year to date.
The discount has brought the dividend yield up to 3.7%, more than three times the S&P 500 average. Is this yield too good to pass up? Let's first assess Nike's dividend payout health before determining whether this is the smartest dividend stock to buy in 2026.
Image source: The Motley Fool.
Dividend coverage is weakening Nike is still navigating challenging macroeconomic headwinds, including inflation and higher energy prices, which are hurting consumer spending. It reported flat revenue for fiscal 2026, which ended in May, with fourth-quarter revenue down 1% year over year.
The weak top-line growth and investments to turn things around have caused Nike's trailing-12-month free cash flow to plummet 65% year over year to just over $1 billion. This doesn't leave enough room for the dividend. The company paid out nearly $2.4 billion in total dividends to shareholders over the last year.
Nike generated $3.1 billion in net income over the last year. With over $7.5 billion in cash on the balance sheet, the dividend is unlikely to be cut. Still, the elevated payout ratio to free cash flow raises this risk for investors unless there is a material recovery in profitability.
The good news is that management has made progress in tightening inventory to better manage costs. It is prioritizing margins over maximizing near-term revenue growth, with gross margin expected to improve starting this quarter.
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Nike's turnaround will take time Nike sportswear and Jordan streetwear remain weak, and together account for about half of Nike's total revenue. The only bright spot appears to be running, which has delivered five consecutive quarters of double-digit growth.
Management is actively working to reduce discounting to boost margins and adjust its product mix to drive sales growth. Over 150 stores have refreshed their inventory with performance-based products, which are seeing stronger demand than lifestyle products. Nike is also introducing a dozen new footwear styles later this year. However, management expects these efforts to take time to generate consistent results.
The turnaround is progressing, but probably not as quickly as Wall Street anticipated. Management is confident in its actions to improve margins. Still, the elevated dividend payout to free cash flow doesn't make the stock the safest choice for income investors.
I wouldn't call Nike the "smartest" dividend stock to buy right now. There are more durable consumer brands, such as Coca-Cola, that offer high yields but don't carry the execution risk associated with a major turnaround effort. Investors who buy Nike shares will need to closely monitor its quarterly earnings to ensure the company is on track to recover margins and free cash flow, which is crucial for sustaining and growing the dividend.
Nike (NKE +2.39%) desperately wants to get back in shape financially, but its "Win Now" turnaround campaign is being held back for one main reason: China. While the retailer's fourth-quarter results actually beat Wall Street's expectations, revenue in Greater China fell a whopping 17% in the quarter and 13% in fiscal year 2026.
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"Win Now" is, however, showing signs that it's beginning to work in other capacities. Nike's running business has grown by double digits for five consecutive quarters. Nike is also rebuilding its wholesale relationships.
Wholesale revenue grew 4% year over year in the fourth quarter. Nike Running also gained market share in both Western Europe and North America. The brand also believes margin expansion could begin this quarter, earlier than the company's original projection.
Image source: The Motley Fool.
China remains Nike's biggest challenge. There's increasing competition within the country, and consumers there have shifted preferences. It doesn't seem like Nike has a real answer to this significant headwind yet.
Shares of Nike are down almost 31% this year and over 72% in the past five years. Investors hoping for a turnaround will, unfortunately, need even more patience as CEO Elliott Hill and his team navigate a tricky global market.
I still believe Nike will make its comeback, but it won't be easy against a defiant Chinese market. Nike needs a stronger strategy in China, as the brand has lost its prestige and cool factor in the market. Current and prospective investors should recognize that this will be a multiyear effort and that the turnaround of a massive global brand will be slower than expected.
Catie Hogan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nike. The Motley Fool has a disclosure policy.
Nike ve 4. čtvrtletí překonala odhady: tržby klesly o 1 %, hrubá marže stoupla na 49,2 % a EPS vyskočil na 0,72 USD. Management ale snížil krátkodobý výhled.
Nike (NKE +2.44%) shareholders have been suffering over the past few years as the company has dealt with problem after problem.
There were some glimmers of hope in the fiscal 2026 fourth-quarter (ended May 31) report released this past week, but management cut near-term guidance and doesn't expect meaningful progress over the next six months. So why is Nike stock rising?
Image source: Nike.
Getting its game on Nike is still picking up the pieces from some major missteps, compounded over the past few years by high inflation and strong tariff exposure. The company was poorly positioned to handle the challenges when it cut out wholesale partnerships and let its innovation engine slip.
In its favor, it got a new CEO and mapped out a turnaround plan, and while external factors are still weighing on its progress, appears to have stemmed the rapid declines.
Here are some of the fourth-quarter highlights, which beat the top and bottom lines:
Revenue decreased 1% year over year, with wholesale up 4% and direct-to-consumer down 7%. Gross margin expanded 8.9 percentage points to 49.2%. Earnings per share (EPS) increased from $0.14 last year to $0.72 this year. While momentum had been building into the quarter, it stalled when the Iran war began and oil prices spiked, putting pressure on global consumers. Although that's been easing, management had to reshuffle orders and block too much inventory that could eventually pile up and have to be marked down for sale. Over the next six months, sluggish sales are expected.
Going on the offense One particular area where Nike is truly struggling is China, where sales dropped 17% for the full year. CEO Elliott Hill said Nike is doing a "comprehensive reset" in the region, going on the offense and working with local partners to see how it can win.
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But there were many positive updates. Performance sales were up mid-single digits for the full year, which marked the fifth consecutive quarter of double-digit growth in Nike Running.
Although China is struggling, North America is showing signs of recovery, and the wholesale business grew by double digits for the full year. So while the near term looks bleak, the recovery is possible.
In the meantime, Nike stock has fallen low enough to look like a strong value. It tanked after earnings, and its P/E ratio dipped below 20. At the current price, its dividend yields 3.8%. Value investors may have seen the opportunity, and long-term investors might be counting on a big recovery later this year.
Nike hlásí, že kampaň „Rip the Script“ překročila 1,5 miliardy zobrazení a podpořila momentum kolem mistrovství světa ve fotbale. Firma zároveň sází na novou strategii Sport Offense.
“When we lead with sport, we win,” Nike CEO Elliott Hill said. SANTA MONICA, CALIFORNIA - JUNE 10: A pedestrian walks by a display of international soccer player photos outside of a Nike store on June 10, 2026 in Santa Monica, California. Retailers and restaurants are getting ready for the World Cup, which begins on June 11 and runs through July 19. (Photo by Justin Sullivan/Getty Images)
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Nike just delivered a sobering fiscal 2026 earnings report, underscoring how difficult it is for a market leader to play catch-up in a category it once defined. While the company still expects headwinds through the first two quarters of fiscal 2027, it sees momentum building—led by outstanding performance around the World Cup, including over 1.5 billion views of the “Rip the Script” video during the first week of play. World Cup tailwinds haven’t yet shown up in the latest quarter, which ended May 31.
Now with a challenging fourth quarter and full year behind it, Nike is going on offense. “We’re not building this business for the next quarter or the next year. We’re building it for the decade to come,” CEO Elliott Hill said in the earnings call.
Nike will realize that goal through the Sport Offense strategy: a new corporate structure built around cross-functional teams organized by sport. Essentially, Sport Offense puts sports culture—the distinct identity, passion and performance expectations of each sport—back to the center of everything “Nike,” reversing its product-centric approach of recent years. Sport Offense marks a return to the sport-led model that originally made Nike great. “When we lead with sport, we win,” Hill said.
Early Innings Of Nike’s TurnaroundWhile the full year revenues beat Wall Street expectations—coming in flat at $46.4 billion (down 2% constant currency)—the fourth quarter was down 1% reported (-4% currency neutral) to $11 billion. A 3% uptick in North America to $4.8 billion couldn’t overcome a staggering 17% constant-currency decline in China to $1.3 billion and a 6% drop to $3 billion in EMEA.
A similar mixed picture runs throughout the latest earnings report. Quarterly net income jumped from $211 million last year to $1.1 billion this year, thanks to a one-time $986 million tariff refund. For the full year, net income fell 3% to $3.1 billion, and earnings per share were down 3%.
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Year-end Nike Brand revenues increased 1% to $45.2 billion (-1% constant-currency), Converse brand continued to be a drag, down 31% to $1.2 billion. Hill said the Converse brand strategy was being “sharpened” around the Chuck Taylor and Jack Purcell lines. Basketball star Shai Gilgeous-Alexander, previously with Converse, has now moved over to the Nike Basketball lineup.
Distribution was uneven too. Wholesale, accounting for nearly 60% of revenues in 2025, rose 6% for the year (+4% constant currency), while Nike Direct revenues dropped 6% (-8% constant currency) with digital sales down 12% and Nike-owned stores off 4%.
A return to growth at Foot Locker was the quarter’s wholesale highlight. For the first time in four years, Foot Locker posted positive revenue growth and retail sales comps.
On the plus side, Nike is mending fences with independent retail partners, key influencers in the sporting goods sector. But the shortfall in Nike Direct indicates some brand weakness. It is taking steps to correct that by elevating the customer experience in-store with a focus on “celebrating sports moments.”
Some 150 stores have gotten the “sports-led experience” makeover to date and Nike plans to elevate 50% of its owned store fleet by the end of fiscal 2027. Last year, the company operated 85 in-line Nike stores in the U.S. and 61 internationally. Factory stores make up the bulk of Nike brand’s retail footprint, over 200 in the U.S. and nearly 550 internationally.
Coming up short this quarter was Nike Sportswear, down double-digits, and Jordan Streetwear. Acknowledging the critical need to get both back on track—together they represent about half of company revenues—Hill said, “Our point of differentiation—what creates authenticity for Nike—is our sport business. That creates the halo over both of those brands and what differentiates us from fashion brands.”
During his remarks, Hill pointed to Serena Williams wearing the Radical Air sneaker on the Wimbledon court. The innovation in that sneaker will start to show up in Sportswear soon.
That’s the halo the Sport Offense is designed to create: sport-born authenticity that lifts every brand across the portfolio and every customer touchpoint.
On OffenseAgainst a backdrop where its more lifestyle-oriented sportswear and streetwear ranges flagged, sports performance offerings got a lift. “Our renewed obsession with sport and the success of our athletes is fueling energy for our brands and building momentum in our performance business, which grew mid-single digits this fiscal year,” Hill reported.
Running was the first sport to get the Sport Offense makeover and the results are showing: Nike running delivered five consecutive quarters of double-digit growth and added about $1 billion to its running business. Hill also added that across Europe and North America, Nike footwear gained 5 points of running market share— more than any other top-five brand. He didn’t name names, but Adidas, Asics, New Balance and Puma are chief competitors in the category.
Training, basketball, all-conditions gear are also being realigned around the Sport Offense strategy, but key at the moment is global football, where Adidas is giving it a run for its money. Brand Adidas sales were up 13% constant currency in fiscal 2025 and advanced 14% through first quarter ending March 31. Adidas is also the only sportswear global partner with FIFA, and is dressing 14 teams in the World Cup, compared to Nike’s 12.
World Cup Forward MomentumHill pointed to global football as the best example of how the Sport Offense is playing out. “We’re not treating the tournament as a single moment. We’re using it to reshape our business, telling a connected story over time, engaging different communities in relevant ways and building momentum that carries well beyond the tournament.”
Pivotal to its World Cup moment—and long-term global football strategy—is the storytelling embedded in the six-minute “Rip the Script” long-form video and its numerous short-segment spin-offs.
In a Business of Fashion podcast, Helena Thornton, vice president of Nike brand management, shared, “We live in an attention-deficit culture, don’t we? You’ve got three seconds to catch somebody’s attention, and we said, as a team, if the story is good enough, people will want to watch it.”
With over 1.5 billion views, “Rip the Script” has massively broken through, with Thornton noting that many people are staying around for the whole thing—not to mention those who come back to catch the Easter eggs liberally stashed along the way. “It’s so easy in today’s world to get lost in all of the data and all of the analytics, but if your story is good enough, people are captivated,” she continued.
Nike is counting on World Cup fever to carry on, even if the company hasn’t factored it into its muted guidance for the first half of fiscal 2027. To date, it’s racked up a number of wins:
Nike has sold 2.5 times as many national team kits as in the same period before the 2022 World Cup. The Aero-Fit sports apparel line, designed to help athletes compete in extreme conditions, has accelerated demand. The Mercurial boot became Nike’s fastest-selling cleated footwear launch in the history of Nike Direct.More than 5,000 football retail doors globally have been elevated around the World Cup. The World Cup “halo” is expected to drive high-single-digit demand growth in the first quarter, a company spokesperson shared with me.Significantly, Nike is replacing Adidas as Germany’s national team kit partner next year—a real blow for Adidas on its home turf.
Sport Offense Puts The Swoosh Back In NikeJefferies analyst Randal Konik believes that Nike bottomed out in the fourth quarter and is stabilizing. Yet he asserted, “Nike’s fiscal fourth quarter results confrm that the right strategies are in place under CEO Hill and are proving themselves out,” pointing to improved margins, disciplined cost management in place, stable inventories and performance growing mid-single-digits.
“The real signal for us is North America—that geography grew 3% and wholesale was up 10%,” he continued. “Getting wholesale back was a central piece of our upgrade thesis, and now it’s actually happening.”
While Konik offers a largely positive read of the latest results, GlobalData’s Neil Saunders is more measured. “There is no doubt that Nike has been trying to aim higher and run faster. Despite these efforts, it has still ended its fiscal year with a whimper rather than going out with a bang,” and he added, “Full recovery remains elusive and a long way off.”
CEO Hill shares Saunder’s frustration. “Overall, the results aren’t there yet. We know we are not living up to our full potential.” However, he feels the renewed energy among his team and momentum growing underneath the latest numbers—and those still to come.
“I see the progress. I see the structural change. I see the foundation getting stronger. I see the Sport Offense taking hold. I see a team that’s been tested and is ready for what’s in front of us,” he concluded. “The goal isn’t one championship. It’s to build a team that can do it again and again.”
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ForbesAdidas Leans Into Soccer While Nike Chases Culture In World Cup Marketing ShowdownBy Pamela N. Danziger
Nike’s earnings results suggest brands are rethinking how they measure D2C success.
The next phase of D2C centers on loyalty, payments and customer relationships that extend across every shopping channel.
As consumers become more selective, retailers are prioritizing reach and convenience alongside first-party data.
The shorthand of direct-to-consumer (D2C) might boil down to selling through a brand’s own website or brick-and-mortar location. But writ large, the model is about controlling the customer relationship.
Consumer brands poured resources into owned channels, betting that higher margins, richer customer data and stronger loyalty would outweigh the costs of acquiring customers themselves.
Recent events across retail suggest that calculation is changing. Several of the companies that helped define the D2C era have spent the past few years abandoning the idea that growth depends on steering every customer into owned channels.
By way of example, mattress seller Casper ultimately agreed to go private after years of struggling to produce sustainable returns as a public company.
SmileDirectClub entered bankruptcy.
Most recently, Allbirds agreed to sell assets and focus on artificial intelligence.
While each company faced its own challenges, together they illustrate a broader lesson. Building a recognizable brand and building an efficient distribution model are not necessarily the same exercise.
Nike’s fourth-quarter earnings results released Tuesday (June 30) provided the latest and perhaps clearest indication that even the industry’s largest brands are recalibrating the balance between owned channels and wholesale distribution. During the quarter, Nike Direct revenue fell 9%, including a 12% decline in Nike Digital, while wholesale revenue increased 1%. In North America, wholesale revenue climbed 10% as the company continued rebuilding relationships with retail partners.
“The integrated marketplace is one of our most important areas of transformation,” Nike President and CEO Elliott Hill said during a Tuesday earnings call. “We’ve been rebuilding our wholesale relationships, expanding our outreach and improving how we show up across channels.”
Hill outlined a strategy in which owned stores, digital channels and wholesale partners each contribute to the customer relationship. He also said Nike is “discounting less on Nike Digital” while continuing to invest in stores that fit its long-term strategy.
The broader read-across extends beyond Nike. As digital advertising costs have increased and consumers have become more willing to compare prices across retailers, marketplaces and brand sites, the economics of insisting that every purchase occur through an owned channel have become less compelling.
Brands still want first-party data. They still want loyalty. They still want recurring engagement. However, they arguably appear less concerned about whether the transaction itself occurs on a proprietary website.
Relationships Matter More Than Channels PYMNTS Intelligence’s latest “Global Digital Shopping Index,” commissioned by Visa Acceptance Solutions, found that merchants’ own mobile apps remain their strongest individual growth channel, with 57% reporting higher sales over the past year. At the same time, websites, physical stores, third-party marketplaces and delivery platforms all generated growth for roughly half of merchants surveyed.
The message is that consumers are buying wherever it is most convenient, and merchants are adapting by investing across all of them.
Merchants’ mobile apps generally offer a better shopping experience. Merchants are more likely to provide biometric authentication, digital wallet autofill, stored credentials, one-click checkout and QR code payments inside their apps than on their websites. Those capabilities reduce friction, shorten checkout and make repeat purchases easier. Ensuring that loyalty accounts, payment credentials and personalized offers recognize the customer are critical wherever that customer chooses to shop.
Consumers are growing more deliberate about spending. PYMNTS Intelligence’s latest research on household spending found that roughly two-thirds of consumers are trimming purchases or actively looking for ways to reduce everyday expenses. Under these conditions, shoppers are less inclined to remain loyal to a single retailer or website. They compare prices, search across multiple merchants, and expect checkout to be fast and familiar regardless of where they complete the purchase.
Brands face changing D2C economics. Customer acquisition costs have risen, and forcing every shopper into an owned channel risks sacrificing reach at a time when consumers are moving fluidly among retailer websites, marketplaces, social commerce and physical stores. The objective becomes preserving first-party relationships even when distribution broadens.
Nike čeká téměř 1 miliardu USD z refundace cel, i když CEO Elliott Hill varuje před přetrvávajícím tlakem na náklady. Tržby za celý rok byly 46,4 miliardy USD, meziročně beze změny.
Nike is expecting an “unplanned benefit” in the form of a nearly $1 billion tariff refund.
The sneaker giant revealed the refund when announcing full-year and quarterly earnings this week, even as CEO Elliott Hill warned that tariffs remain a “dynamic cost headwind.”
The earnings showed full-year revenues of $46.4 billion, flat on a reported basis and a 2% decline on a currency-neutral basis.
Fourth-quarter revenues came to $11 billion, down 1% on a reported basis and falling 4% on a currency-neutral basis, with Nike facing what Hill called a “more challenging” operating environment as the spring wound on.
“After a stronger start in March, especially in North America, by mid-April, we began to see a deceleration in retail sales trends,” he said during an earnings call. “Our consumer is under pressure around the world, and we can particularly see it having a larger impact on sportswear, which declined double digits in the quarter with a similar decline in retail sales.”
In addition to tariffs, Chief Financial Officer Matthew Friend pointed to ongoing disruption in the Middle East, fuel prices and other factors that could affect operating costs, consumer behavior and weakness in store traffic and sales.
“These assumptions reflect the macro environment as it stands today, and we are not expecting the environment to improve meaningfully over the next six months,” he said.
Meanwhile, recent PYMNTS Intelligence research shows that while financial pressures continue to guide household decisions, the desire to make purchases has not faded.
“That distinction offers an encouraging signal for banks, merchants and payment providers looking beyond today’s economic headlines,” PYMNTS wrote earlier this week.
Nike customers sued the company in May to recover tariff-related refunds, accusing Nike of not refunding the costs it passed onto them in the form of higher prices.
The suit was one of many filed in the wake of a Supreme Court ruling declaring President Donald Trump’s “Liberation Day” tariffs illegal.
“Nike has made no legally binding commitment to return tariff-related overcharges to the consumers who actually paid them,” the plaintiffs said in their complaint. “Unless restrained by this court, Nike stands to recover the same tariff payments twice — once from consumers through higher prices and again from the federal government through tariff refunds.”
Nike chose not to comment on the lawsuit when contacted by PYMNTS at the time.
Nike shares fell 4% in premarket trading on Wednesday after the sportswear giant's latest quarterly results failed to convince investors that its turnaround under Chief Executive Officer Elliott Hill is gathering pace.
Although Nike topped Wall Street expectations for both earnings and revenue, a cautious outlook for the coming quarters, persistent weakness in China and continued uncertainty around consumer demand overshadowed the better-than-expected performance.
The company's results also weighed on European sportswear stocks, with Adidas and Puma both falling more than 1% in early trading.
Nike shares have already declined around 35% this year as investors grow increasingly concerned about the pace of the company's recovery amid rising competition and shifting consumer preferences.
Nike reported fiscal fourth-quarter earnings of 20 cents a share, excluding a 52-cent benefit related to the expected recovery of import tariffs.
Revenue declined 1.1% from a year earlier to $11 billion.
Analysts polled by LSEG had expected earnings of 12 cents per share on revenue of $10.9 billion.
Despite the earnings beat, investors focused on management's guidance that sales are expected to continue declining through the first half of fiscal 2027 as the company navigates tariff pressures, geopolitical uncertainty and cautious consumer spending.
Nike now expects revenue to decline by low- to mid-single digits during the period from March through November, compared with its earlier forecast for a low-single-digit decline.
The company also continues to expect earnings to remain largely flat over the same period.
"We are not expecting the environment to improve meaningfully over the next six months," Chief Financial Officer Matthew Friend said during the earnings call, citing evolving tariff policies, conflict in the Middle East and oil prices as factors that could pressure both costs and consumer demand.
Given the uncertain backdrop, Nike plans to tighten inventory and reduce orders, a strategy management believes will support margins but weigh on near-term revenue.
Despite the muted outlook, some analysts said Nike's renewed focus on sports is beginning to deliver encouraging signs.
Jefferies analysts said the company's fiscal fourth-quarter results were better than feared.
"Nike's emphasis on its sports business is showing early signs of paying off, though performance in China remains a drag on the company," the brokerage wrote.
According to Jefferies, Elliott Hill's "sport offense" strategy has helped return Nike's wholesale business to growth, validating the company's renewed emphasis on performance categories.
However, analysts said continued weakness in Nike's direct-to-consumer business, including its retail stores and digital platform, remains a significant challenge.
Nike has spent the past two years rebuilding relationships with wholesale partners while attempting to reduce excess lifestyle inventory that had weighed on sales and margins.
The company also pointed to early progress in several areas, including stronger World Cup marketing campaigns, faster product launches and improving football demand after a slowdown in April.
Management forecast a slightly positive gross margin during the first quarter and said more than a dozen new footwear styles are scheduled for launch as part of the company's product refresh.
CEO Elliott Hill acknowledged that rebuilding consumer demand will take time.
"We know we're not living up to our full potential," he said.
China remains one of Nike's biggest obstacles.
Revenue in Greater China, which accounts for roughly 15% of Nike's annual sales and is its third-largest market after North America and Europe, the Middle East and Africa, continued to post double-digit declines during the quarter.
Outgoing finance chief Matthew Friend said the company expects China to remain under pressure as Nike works with retail partners to clear excess inventory.
Some analysts said the restructuring effort is beginning to show signs of progress but warned that meaningful sales growth is unlikely until the inventory reset is complete.
Nike is pursuing a more premium, sports-focused strategy in China, although analysts expect the benefits of that approach to emerge gradually rather than immediately.
Hill said the company expects newly launched footwear products to contribute more meaningfully to growth during 2027 as the broader product pipeline gains traction.
Analysts remain divided over how quickly Nike can regain lost market share.
Bernstein said the company's decision to prioritise marketplace health over short-term revenue growth is strategically sound but likely to delay any meaningful earnings recovery.
"Revenue declines through H1 mean no earnings growth until at least H2'27 as Nike prioritizes marketplace health over near-term sales — a good decision for the company but not for rapid recovery of the stock," Bernstein analysts said.
Nike has struggled to regain momentum after losing customers to newer athletic brands while also dealing with softer consumer demand globally.
In March, management acknowledged that efforts to revive growth were taking longer than expected despite improving trends in North America, particularly in running and football footwear.
Some analysts, however, remain unconvinced that Nike's latest product launches have resonated strongly enough with consumers.
The company's digital business has also remained under pressure as Nike attempts to reposition the platform around higher-priced products rather than relying on discounting.
The prolonged decline in Nike's share price has also prompted speculation that the stock could eventually lose its place in the Dow Jones Industrial Average.
Wall Street has become increasingly cautious in recent weeks.
KeyBanc Capital Markets downgraded the stock last week, saying investors may have to wait until Nike's investor day later this year before gaining greater confidence in the company's long-term turnaround strategy.
Even after Wednesday's decline, Nike trades at a forward price-to-earnings multiple of about 21.95, above Adidas' multiple of 16.81, according to LSEG data, suggesting investors continue to price in a recovery that has yet to fully materialise.
Nike (NKE - Free Report) came out with quarterly earnings of $0.2 per share, beating the Zacks Consensus Estimate of $0.11 per share. This compares to earnings of $0.14 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +82.48%. A quarter ago, it was expected that this athletic apparel maker would post earnings of $0.29 per share when it actually produced earnings of $0.35, delivering a surprise of +20.69%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Nike, which belongs to the Zacks Shoes and Retail Apparel industry, posted revenues of $10.97 billion for the quarter ended May 2026, surpassing the Zacks Consensus Estimate by 1.13%. This compares to year-ago revenues of $11.1 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Nike shares have lost about 34.9% since the beginning of the year versus the S&P 500's gain of 8.7%.
What's Next for Nike?While Nike has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Nike was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.46 on $11.42 billion in revenues for the coming quarter and $1.83 on $46.57 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Shoes and Retail Apparel is currently in the top 44% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Steven Madden (SHOO - Free Report) , is yet to report results for the quarter ended June 2026.
This footwear and accessories retailer is expected to post quarterly earnings of $0.31 per share in its upcoming report, which represents a year-over-year change of +55%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Steven Madden's revenues are expected to be $629.57 million, up 12.6% from the year-ago quarter.
Nike ve 4. čtvrtletí vykázala EPS 0,72 USD a tržby 10,97 miliardy USD, obojí nad odhady. Hrubá marže vyskočila na 49,2 % hlavně díky jednorázovému tarifu, který přidal zhruba 890 bazických bodů.
Live Coverage Updates appear automatically as they are published.
Live Updates 47 minutes ago
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That wraps up our initial coverage of Nike’s Q4 results. Thank you for stopping by!
Check out management’s earnings call at 5 PM ET for more updates.
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Nike’s reported $0.72 EPS looks like a massive beat versus Wall Street’s $0.12 estimate, but investors should understand what drove the result.
The company said fourth-quarter earnings included a $986 million benefit from the recovery of tariffs. That one-time item added approximately $0.52 per share to diluted EPS and boosted gross margin by roughly 900 basis points.
Adjusting for that benefit paints a different picture:
Reported EPS: $0.72 Less one-time tariff recovery: $0.52 Adjusted core EPS: $0.20 Likewise, Nike’s reported 49.2% gross margin falls to roughly 40.2% after excluding the tariff-related benefit.
The quarter was still better than expected, but the headline earnings number significantly overstates the underlying improvement in Nike’s core business. Going forward, investors will likely focus on whether Nike can generate sustainable revenue growth and margin expansion without similar tailwinds.
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Nike’s revenue trends showed a business still navigating a challenging consumer environment, with some encouraging pockets of strength. Fourth-quarter revenue totaled $11.0 billion, down 1% from a year ago, as continued weakness in Greater China and EMEA weighed on overall results.
Underneath the surface, however, the sales mix tells a more nuanced story. Wholesale revenue increased 4% to $6.6 billion, driven primarily by growth in North America, while Nike Direct revenue declined 7% to $4.1 billion.
Management said Nike Brand Digital sales fell 12%, while revenue from Nike-owned stores decreased 7%, reflecting continued pressure across its direct-to-consumer business.
Overall, Nike Brand revenue slipped just 0.4% year over year, suggesting the company’s core product portfolio is beginning to stabilize even as certain regions remain under pressure.
Investors will likely be watching upcoming quarters to see whether wholesale momentum continues and whether digital sales can return to growth as Nike’s turnaround progresses.
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While investors will naturally focus on Nike’s earnings beat, the biggest driver of the quarter was a dramatic improvement in profitability. Gross margin jumped 890 basis points to 49.2%, with the company attributing most of the increase to the expected recovery of International Emergency Economic Powers Act (IEEPA) tariffs.
According to Nike, the tariff recovery contributed roughly 900 basis points of gross margin benefit during the quarter and added approximately $0.52 per diluted share to earnings.
That helps explain why EPS came in at $0.72, crushing Wall Street’s $0.12 expectation despite revenue remaining under pressure.
Investors will now be listening closely on the conference call to determine how much of this margin improvement represents a one-time benefit versus a more durable improvement in Nike’s earnings power. If margins remain elevated even as sales recover, it could meaningfully improve the company’s profitability heading into fiscal 2027.
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Nike just reported fiscal fourth-quarter earnings, with shares initially up 2% in after-hours trading. Here are the key numbers:
Key Results Revenue: $10.97 billion vs. $10.84 billion expected EPS: $0.72 vs. $0.12 expected Gross Margin: 49.2% vs. 40.3% a year ago Inventory: $7.50 billion, up 0.2% year over year Nike Brand Revenue: $10.72 billion, down 0.4% year over year Greater China EBIT: $243 million, down 20% year over year Quick Read Nike delivered a solid beat on both revenue and earnings, while gross margin improved sharply year over year. Investors will now focus on fiscal 2027 guidance and management’s commentary on demand trends, particularly in China and North America.
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Beyond the bull/bear setup, four wildcards aren’t fully reflected in the $0.11 consensus.
Four Wild Cards Hiding in Tonight’s Report KeyCorp’s eleventh-hour cut: At 12:13 PM ET today, KeyCorp slashed its Q4 estimate from $0.29 to $0.12, resetting the bar hours before the release. CFO transition: Matthew Friend is stepping down, with former Pfizer CFO David M. Denton taking over. Expect commentary on capital allocation and guidance philosophy. Tax rate normalization: The effective tax rate jumped to 20.0% from 5.9%, a swing that could cut either way on EPS. Dow removal risk: Nike is reportedly on “thin ice” for index removal, an overhang amplifying any soft commentary. With shares at $41.10, sentiment is fragile.
1 hour ago
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After falling from roughly $180 at its 2021 peak to around the $40 range, Nike stock now trades at about 22x forward earnings and is approaching 1x trailing sales, a valuation the company hasn’t seen since the depths of the 2008-09 financial crisis.
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The question is whether the business can grow into that valuation. Analysts currently expect 22% EPS growth in fiscal 2027, even though revenue is projected to be essentially flat.
If management can show investors that North America is stabilizing, China is improving, and revenue growth is finally returning, the market may begin to price Nike as a recovery story rather than a company still searching for a bottom.
1 hour ago
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Nike’s turnaround ultimately comes down to driving revenue growth again.
The company has posted year-over-year revenue declines in six of its last nine quarters, while analysts currently expect another 2% sales decline this quarter.
Investors have shown they’re willing to look past near-term margin pressure, but they need evidence that demand is stabilizing.
For a brand as mature as Nike, sustained revenue growth is likely the clearest signal that the business has turned the corner and will be top of mind among investors tonight.
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With Nike (NYSE:NKE | NKE Price Prediction) reporting after the close, prediction markets price a 90% probability of beating the $0.12 EPS consensus. Here’s how each side frames it.
Bull Case Beat streak: Four consecutive EPS beats, with Q3 surprising by 24.25%. Insider conviction: CEO Hill bought 47,320 shares near $42.26 in April, alongside directors Cook, Rogers, and Swan. Wholesale and North America momentum: North America wholesale grew 11%; Running rose over 20%. Bear Case Profitability eroding: Q3 net income fell 34.51%; gross margin compressed 130 bps. China guidance: CFO Friend guided Q4 China down approximately 20%. Sell-the-news pattern: Shares are down 33.87% YTD, with average 1-week post-earnings change of -3.71%. Converse collapse: -35% YoY, EBIT now a loss. 1 hour ago
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With Nike (NYSE:NKE) reporting after the close, here is what to listen for on the call.
Top 5 Analyst Questions Are Win Now actions still on track to finish by calendar year-end? Is Greater China stabilizing after the 10% currency-neutral Q3 decline? When does gross margin inflect in Q2 FY2027? What stops the Converse bleed after the -35% Q3 drop? Can Nike Direct/Digital return to growth? Key Topics & Buzzwords Listen for: “Sport Offense,” “integrated marketplace,” sell-through, NIKE MIND traction. Red Flags EMEA inventory still elevated, withdrawn FY27 guidance, or tariff impact exceeding the guided 250 basis points. With shares -33.87% YTD, tone matters as much as the numbers. 2 hours ago
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Nike has already laid out much of its turnaround strategy, making tonight’s earnings report an important bridge to the company’s fall Investor Day.
CEO Elliott Hill recently said the company’s “Win Now” initiatives remain on track to be substantially completed by year-end, with full long-term financial guidance expected this fall.
While analysts expect Nike to earn just $0.11 per share, the bigger key questions for the business are whether gross margins continue to recover, whether sales trends in China show signs of stabilizing, and whether management strikes a confident tone about the pace of the turnaround.
CEO Hill’s recent open-market stock purchase has also raised expectations that leadership believes the business is approaching an inflection point. If Nike can pair solid execution with a constructive outlook, investor sentiment could finally begin catching up with the company’s improving operating fundamentals.
Investors are watching Nike (NYSE:NKE) ahead of fiscal Q4 2026 results due at 4:15 PM ET after the market closes today. With shares down 33.87% year-to-date, this report has to give Nike’s turnaround story a pulse and could offer promising guidance for fiscal 2027.
The Comeback Hits Its Toughest Test CEO Elliott Hill called fiscal 2026 the “middle innings” of Nike’s comeback, and the last report showed why. Q3 revenue was flat on a reported basis, EPS of $0.35 beat the $0.28 consensus, and gross margin declined 130 basis points to 40.2% on a 300 basis point tariff hit in North America.
Since then, shares are down 9.47% over the past month and trade near a 52-week low of $40.00, well below the 200-day moving average of $57.94. Despite the decline, CEO Elliot Hill bought 47,320 shares on April 13 at roughly $42.27, joined by directors Tim Cook, John Rogers, and Bob Swan.
Consensus Estimates Metric Q4 FY26 Estimate Prior Year EPS $0.11 $0.14 Revenue trajectory (company guide) Down 2% to 4% — FY26 EPS (TTM) $1.52 diluted FY26 Revenue (TTM) $46.52B Tariffs, China, and the FY27 Setup Tonight, I’ll be watching three things. First, gross margin. CFO Matthew Friend guided Q4 margin down 25 to 75 basis points, including 250 basis points of tariff drag. He flagged Q2 fiscal 2027 as the last quarter of material tariff headwinds, so any commentary that tightens that timeline matters.
Second, Greater China. Friend told the Street to expect the region down approximately 20% in Q4 as Nike intentionally pulls sell-in to clean the marketplace. Q3 China revenue was down 10% with inventory down mid-teens. Investors will want to hear that profitability is bottoming out even as revenue continues to fall.
Third, North America momentum. Wholesale grew 11% in Q3 while Direct fell. Hill said the region saw positive growth in all channels for the first time in two years. Running was up over 20%. If those trends extend, the “Win Now” framework looks real.
Prediction markets price a 92% probability of an EPS beat, which would be the eighth quarter in a row. The harder question is the stock’s reaction. Nike has averaged a -3.71% one-week move after results.
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Nike je před výsledky hospodaření za 4. čtvrtletí na 11letých minimech a analytici čekají tržby 10,86 miliardy USD a zisk 12 centů na akcii. JPMorgan snížil cílovou cenu na 47 USD a varuje, že obrat může trvat déle.
Nike Inc (NYSE:NKE) finds itself with shares trading at 11-year lows ahead of fourth-quarter financial results, which are set for Tuesday after market close.
Here’s a look at the apparel company’s earnings estimates, what experts are saying ahead of the report and key items to watch.
Nike Q4 Earnings EstimatesAnalysts expect Nike Q4 revenue of $10.86 billion, down from $11.1 billion in the year-ago quarter, according to Benzinga Pro data.
The company has topped revenue estimates for six straight quarters and seven of the last 10 quarters overall.
Analysts expect quarterly earnings of 12 cents per share, down from 14 cents per share a year ago.
Nike has beaten earnings-per-share estimates for 11 consecutive quarters.
What Nike Experts Are SayingJPMorgan analyst Matthew Boss lowered the price target on Nike stock from $52 to $47 ahead of the earnings report, while maintaining a Neutral rating.
The analyst lowers estimates for the quarter and said the results will likely be "in line" with previous guidance.
Boss said comments from Nike’s CEO Elliott Hill for a recent Financial Times article show the restructuring could be taking longer than hoped.
"Our recent fieldwork points to a sequential deterioration in demand in April/May," Boss said.
Freedom Capital Markets Chief Market Strategist Jay Woods said Nike shareholders "are still waiting for that turnaround."
"Will management show progress when it comes to new product launches and reconnecting with consumers?" Woods said in a weekly newsletter.
The market expert said investors should watch for cost cuts, China growth and inventory figures in the fourth quarter.
"Expectations have already been lowered, so this quarter may be less about the numbers themselves and more about whether management can convince investors the stock is ready to run again."
Woods said Nike stock broke the $42 level of support ahead of earnings, a level it would need to recapture after earnings to push to another support level of $46.
"Those longer-term shareholders hoping for a quick fix may have to wait much longer for this trend to change."
Here are recent Nike analyst ratings and their price targets:
Deutsche Bank: Maintained Hold rating, lowered price target from $51 to $43 Oppenheimer: Maintained Outperform rating, lowered price target from $120 to $60 KeyBanc: Downgraded from Overweight to Sector Weight, no price target BTIG: Maintained Bu rating, lowered price target from $75 to $55 Key Items to WatchAs mentioned by Woods above, China, inventory and cost cuts could be three key areas for investors to watch in Nike’s report Tuesday and on the conference call.
In the third quarter, revenue was flat on a year-over-year basis, with North America sales growth of 3% helping to offset a 7% decline for the Greater China region. Other international regions posted year-over-year growth in the third quarter, a key area to watch on Tuesday.
Expectations are low for Nike heading into the earnings print, which could make the stock ripe for a rally if the company beats and provides strong guidance.
With shares at 11-year lows, the stock has sold off and many investors are heading to the sidelines with the turnaround taking longer than expected.
Price ActionNike stock is up 0.5% to $40.96 on Monday versus a 52-week trading range of $40.00 to $80.17. Its stock price is down 35.2% year-to-date in 2026 and down over 40% in the last 52 weeks.
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NIKE uvedla, že do výsledků za 4Q zahrne nečekaný jednorázový přínos z vrácení cel. Bez něj má zisk na akcii odpovídat dřívějšímu výhledu, nikoli jej překonat.
NIKE NKE shares are trading lower despite announcing that its Q4 results will include an unexpected tariff-refund benefit. However, the company clarified that, excluding this one-time benefit, Q4 results are expected to align with previous guidance rather than exceed it. Additionally, NIKE is set for a CFO transition, with David Denton stepping in on August 17, while current CFO Matthew Friend will assist until September 4. This transition adds another layer of complexity as investors weigh the short-term earnings benefit against ongoing leadership changes during a prolonged turnaround period.
Guidance Quality: NIKE's previous Q4 outlook estimated revenue between $10.65 billion and $10.87 billion, reflecting a decline of 2% to 4%, with gross margin expected to decrease by 25 to 75 basis points year-over-year. The new update does not alter this framework but adds an unquantified tariff-refund benefit. Underlying Sales Read: The prior Q4 revenue guidance included a 2-point FX benefit, indicating that the constant-currency demand remains weaker than the reported decline suggests. Turnaround Shape: Management is focusing on achieving milestones, aiming to complete "Win Now" actions by the end of calendar 2026, with gross margin expansion expected to begin in Q2 2027 and cost-reset benefits to accumulate through fiscal 2028. What is Working: North America is a bright spot, with Q3 revenue increasing by 3% and wholesale up 11%, although recovery remains uneven as Direct sales fell by 5% and Digital declined by 7%. What is Still Weak: Digital remains overly promotional globally, sportswear sales continue to struggle, Converse faced a 35% revenue decline in Q3, and Greater China is expected to remain under pressure due to reduced sell-in and marketplace cleanup. Leadership Transition: The CFO change is not linked to any disputes, and Denton brings valuable experience from CVS Health CVS and Lowe's LOW , providing CEO Elliott Hill with a finance partner skilled in cost discipline and capital allocation.The recent update from NIKE NKE offers a clearer Q4 outlook but does not address larger concerns regarding demand quality, promotional activities, and the timeline for a sustainable margin recovery. The upcoming report on June 30 will be crucial in assessing the underlying business quality, including full-price selling, inventory management, digital promotions, and whether improvements in North America's wholesale sector are translating into a healthier direct business. The CFO transition is significant, as it introduces a new finance partner during this critical reset phase, but Denton's impact will likely unfold over several quarters. A key test will be NIKE's ability to transform its milestone-based turnaround plan into a credible earnings strategy for FY27 and FY28, making the fall Investor Day a pivotal moment for establishing a more sustainable margin recovery framework.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
BofA ponechává u Nike doporučení Neutral a čeká, že investoři se zaměří hlavně na výhled, ne na čtvrtletní výsledky. Zmiňuje nejisté oživení tržeb, hlavně v Číně a Evropě.
In a research note released Wednesday, Bank of America Securities (BofA) maintained its Neutral rating on the footwear giant with a price forecast of $55.
Analyst Lorraine Hutchinson said investors are expected to focus more on Nike’s forward guidance than on its fourth-quarter performance.
The firm maintained a Neutral rating, saying earnings estimates appear to be nearing a bottom, but the timing of a sustained sales recovery remains uncertain amid China’s reset, sportswear category normalization, and volatile macroeconomic conditions.
While product innovation and North America remain bright spots, BofA said visibility on a sales rebound in China and stabilization in Europe is less clear.
Leadership Transition and Tariff BoostsNike announced David Denton will join the company as chief financial officer, effective August 17, bringing public company expertise from prior CFO roles at Pfizer, Lowe’s and CVS Health. Matt Friend will step down concurrently with Denton’s appointment.
The analyst noted that fourth-quarter results will benefit from a one-time tariff refund. Excluding this benefit, projected performance remains broadly in line with prior company guidance.
BofA models fourth-quarter earnings per share at 11 cents, matching consensus expectations, based on an estimated 3% decline in quarterly revenue.
Wholesale Performance Under MonitoringBofA indicators suggest that slower-than-expected wholesale sell-through continues to warrant caution following management commentary during the third-quarter conference call.
Analysts look for updates on wholesale trends, citing risks that prolonged weakness could lead to elevated discounting, product buybacks, or reduced reorders.
Additional headwind exposure remains for North American sales trends heading into the second quarter of fiscal 2027, as Nike laps a prior 24% wholesale growth period driven by off-price channel inventory.
Near-Term Softness Expected in ChinaThe research firm projects a sharper slowdown in the Greater China region, modeling a 20% decline in fourth-quarter sales. According to the note, Nike continues to pull back on digital promotions and reduce wholesale sell-in within the region.
Valuation and Outlook Inflection TimelineNike trades at a forward price-to-earnings multiple of 22.6 times, down from 31 times prior to the previous quarterly earnings release.
While BofA acknowledged encouraging early indicators within the running category and stable North American demand, the firm anticipates a definitive sales inflection remains several quarters away, limiting immediate opportunities for multiple expansion.
Gross margin improvements are projected to begin expanding in the second quarter of fiscal 2027 as tariff impacts subside.
Nike Earnings EstimatesNike is scheduled to report its fourth-quarter earnings on June 30. Analysts expect earnings per share of 12 cents and revenue of $10.85 billion, according to Benzinga.
In the third quarter, Nike reported earnings per share of 35 cents, surpassing analyst estimates of 28 cents. Revenue came in at $11.28 billion, ahead of the consensus estimate of $11.23 billion.
Nike has exceeded earnings-per-share estimates in each of the past eight consecutive quarters.
NKE Stock Price Activity: Nike shares were down 0.99% at $41.96 at the time of publication on Wednesday, according to Benzinga Pro data.
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Nike před výsledky zůstává 16 % pod úrovní před deseti lety, ale v Severní Americe tržby vzrostly o 3 % na zhruba 5 miliard USD. V Greater China tržby klesly o 7 % a firma čeká ve fiskálním čtvrtém čtvrtletí asi 20% propad.
At about $45 as of this writing, Nike (NKE 1.91%) stock trades 16% below where it did a decade ago. And shares are 44% below their 52-week high of about $80, reached last August.
In short, it's been a tough run for Nike investors. But is that about to change?
Nike reports fiscal fourth-quarter results (the period ended May 31) on June 30. It will be another test of the turnaround CEO Elliott Hill has led since returning in late 2024, a plan management calls its "Win Now" actions. The question hanging over that report is whether the beaten-down price reflects a business that is finally turning or one that is simply stuck.
Image source: Getty Images.
North America is where the comeback shows Nike's largest market is the clearest sign the plan is working. North America revenue rose 3% to about $5 billion in the fiscal third quarter (the period ended Feb. 28, 2026), led by an 11% jump in wholesale as Nike won back shelf space with retail partners. Management said sell-through grew across every channel in February for the first time in two years, with discounting easing and the digital business strengthening as the quarter went on.
"North America is leading our comeback and is well positioned to sustain the momentum as we move forward," chief financial officer Matthew Friend said on the company's fiscal third-quarter earnings call.
If that February turn holds into the fiscal fourth quarter, even as the region laps last year's heavy clearance sales, it would be real evidence Nike can grow its biggest market again.
But what about weakness in Greater China? Greater China is the other side of the story. Revenue there fell 7% to about $1.6 billion in the fiscal third quarter, and management guided for a roughly 20% drop in the fiscal fourth quarter.
That decline, however, is largely self-inflicted. Nike is deliberately shipping less product to clear out aged inventory and curb the discounting that cheapened the brand there.
As China sales shrank, the region's operating profit rose 11%, and inventory fell by more than 20% in units -- the result of reducing near-term sell-in and pulling key styles off discount instead of flooding stores with inventory.
But there are signs of progress. Nike expanded a revamped store concept to 100 locations, including a flagship in Shanghai, and said full-price selling improved.
The number to watch on June 30 isn't the 20% revenue drop itself. It is whether sell-through and full-price demand keep firming under that reduced supply.
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Checking in on gross margin Nike's gross margin slipped to 40.2% in the fiscal third quarter, down from about 41.5% a year earlier, dragged down mostly by higher U.S. tariffs that cost roughly 3 percentage points of margin on their own. Clearing unsold classic-sneaker inventory out of the market pulled about 5 points off reported revenue on top of that.
With that said, management notably guided to a much smaller margin decline in fiscal Q4 and said margins should start expanding again in the second quarter of fiscal 2027, aided by easing tariff pressure and inventory clean-up costs rolling off.
But the stock's price decline hasn't necessarily created the bargain you might imagine. Nike trades around $45, close to where it sat a decade ago, yet its price-to-earnings ratio is still about 30. This is because earnings have fallen about as fast as the stock. Indeed, net income dropped 35% in fiscal Q3.
The stock's valuation, therefore, only works if profits recover, and profits recover only if the turnaround does.
Management expects to complete its Win Now actions by the end of the calendar year and plans to lay out longer-term targets at an investor day this fall.
It has also been candid about the pace.
"This is complex work, and parts of it are taking longer than I'd like," Hill explained during its fiscal third-quarter earnings call.
I think Nike is a more investable company than it was a year ago, thanks to the stock's sharp decline this year. And a 24-year run of annual dividend increases, along with a 3.6% dividend yield as of this writing, pays shareholders to wait.
Still, I'd want the fiscal fourth-quarter numbers to confirm China is finding a floor and margins are bending back before treating this price as a real opportunity rather than a value trap. The stock is cheap for clear reasons. Whether those reasons are starting to fade will hopefully be revealed on June 30.
NIKE, Inc. (NYSE:NKE) will release its fourth quarter earnings report after the closing bell on Tuesday, June 30.
Analysts expect the Beaverton, Oregon-based company to report quarterly earnings of 12 cents per share, down from 14 cents per share in the year-ago period. The consensus estimate for Nike’s quarterly revenue is $10.85 billion. It reported $11.1 billion last year, according to Benzinga Pro.
Nike’s CEO said in an interview that the scale of issues at the company means that the turnaround is taking longer than hoped.
Nike shares fell 4.5% to close at $43.19 on Monday.
Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.
Considering buying NKE stock? Here’s what analysts think:
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NIKE oznámila, že novým finančním ředitelem se stane David M. Denton, který nastoupí 17. srpna. Matthew Friend ve funkci skončí a zůstane do 4. září, aby zajistil hladké předání.
David M. Denton named incoming Chief Financial Officer
BEAVERTON, Ore.--(BUSINESS WIRE)--NIKE, Inc. (NYSE:NKE) today announced that David M. Denton will join the company as Executive Vice President and Chief Financial Officer, effective August 17. Matthew Friend will step down as Executive Vice President and Chief Financial Officer at that time and remain with the company through September 4 to support an orderly transition. Friend will participate in the company’s fourth quarter fiscal 2026 earnings call on June 30, as planned.
Denton will lead Nike’s global finance organization, partnering with President and Chief Executive Officer Elliott Hill and the Senior Leadership Team to support disciplined execution, capital allocation, and long-term value creation.
“Dave is a proven public-company CFO who knows how to help great consumer brands operate with discipline and invest to win,” said Elliott Hill, President and Chief Executive Officer, NIKE, Inc. “We’re focused on doing what Nike does best: serving athletes, leading with sport and building the most innovative products in the world. Dave’s experience, judgment, and operating rigor will help us execute against these priorities with consistency and build on the progress underway.”
Denton joins Nike from Pfizer, Inc., where he has served as Chief Financial Officer and Executive Vice President since May 2022. He brings more than 30 years of finance and operating leadership experience across complex global public companies. Prior to Pfizer, Denton served as Chief Financial Officer and Executive Vice President of Lowe’s Companies, Inc. from 2018 to 2022, where he oversaw finance, strategy, and other enterprise functions while helping advance the company’s transformation and growth priorities. Earlier in his career, he spent two decades at CVS Health Corporation, including as Executive Vice President and Chief Financial Officer, where he helped guide the company’s evolution into a diversified health solutions organization. Denton also brings public company governance experience having previously served on the Boards of Directors of Haleon (2023–2024) and Tapestry (2014–2023) and is expected to serve on the Board of Honeywell Aerospace following its planned spin-off from Honeywell.
“Nike is one of the world’s great brands, with extraordinary strengths in sport, innovation, and global scale,” said Denton. “I’m excited to partner with Elliott and the leadership team to support the company’s priorities, invest with discipline, and help deliver sustainable long-term value as Nike continues to lead with sport and serve athletes around the world.”
"This is a natural moment for a leadership transition as we move from foundational actions to sustained growth through our Sport Offense operating model,” added Hill. “I’d like to thank Matt for his many contributions to Nike over the years. He has dedicated a significant part of his career to this company and has been a valued colleague and partner to many across Nike. We are grateful for his service, appreciate his commitment to ensuring a seamless transition, and wish him all the best in his next chapter.”
NIKE, Inc. Provides Update on Expected Fourth Quarter Fiscal 2026 Results
As previously announced, NIKE, Inc. will report fourth quarter and fiscal year 2026 results on Tuesday, June 30th at 2:00 p.m. PT. These results will include a benefit from tariff refunds that was not contemplated in the company’s previously provided guidance. Excluding this one-time benefit, fourth quarter results are expected to be generally in line with previously provided guidance.
About NIKE, Inc.
NIKE, Inc., headquartered in Beaverton, Oregon, is the world's leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities. Converse, a wholly-owned NIKE, Inc. subsidiary brand, designs, markets and distributes athletic lifestyle footwear, apparel and accessories. For more information, NIKE, Inc.’s earnings releases and other financial information are available on the Internet at https://investors.nike.com/. Individuals can also visit https://about.nike.com/ and follow NIKE on LinkedIn, Instagram and YouTube.
