Americký výrobce sportovní obuvi a textilu Nike po 18 letech vypadne z prestižního indexu největších amerických firem S&P 100. Provozovatel indexu to oznámil minulý týden. Akcie společnosti jsou nejlevnější za posledních 12 let a dál slábnou. Polský list Rzeczpospolita na svém webu v úterý napsal, že mladí už nemají o boty této značky zájem. Změna začne platit 21. září.
Akcie Nike nyní stojí méně než 40 dolarů (833 Kč) a za poslední rok ztratily téměř polovinu své hodnoty. Za uplynulých pět let přišla firma o zhruba 80 procent své tržní kapitalizace. To podle polského listu dokazuje, jak velké změny nastaly na trhu s oblečením a obuví.
Na propad ceny akcií Nike nemá vliv pouze čínská konkurence. Podnik nedokáže držet krok s trendy a na rozdíl od svého dlouholetého rivala Adidas není považován za moderní, napsal polský list. To, že v očích mladých lidí neplatí za trendy firmu, znamená v tomto odvětví tzv. polibek smrti, dodává Rzeczpospolita.
Nike není jediná společnost, která index 21. září opustí. Ve stejný den z něj vypadne také firma Honeywell Aerospace, Simon Property Group a Colgate-Palmolive. Nahradí je podniky z širšího indexu S&P 500 Dell Technologies, Palo Alto Networks, Arista Networks a SanDisk.
Všechny nové firmy pocházejí ze sektoru informačních technologií. Index se nyní více zaměřuje na procesory, cloudový hardware a kybernetickou bezpečnost. V minulosti z něj byly vyřazovány i firmy jako American Airlines, Whirlpool nebo Etsy. V indexu S&P 100 jsou největší a nejhodnotnější firmy z indexu S&P 500.
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09.09.2026 15:35Nike po 18 letech vypadne z indexu S&P 100, akcie jsou nejlevnější za více než dekádu 15:02Traders Talk: Ropa nad 100 dolary, ČEZ útočí na rekord a kde hledat příležitosti 14:33Akcie Mety po uvedení nového AI agenta posilují o pět procent 12:28Rozvíjející se trhy těží z AI boomu. Odhady zisků v indexu MSCI EM rostou nejrychleji v historii 11:44ČEZ získal povolení k použití jaderného paliva od Westinghouse v Temelíně 11:14Ropa za 100 a strach z inflace drží sentiment dole 10:37Trénoval modely pro OpenAI i Anthropic, teď opouští obor a varuje před podceňováním rizik 9:23Bessent vyhlašuje válku spekulantům, chce zastavit útoky na jen 8:58Rozbřesk: Minimální mzda výrazně vzroste, jaké budou dopady do české ekonomiky? 8:37USA přitvrzují v obchodní válce s Kanadou, ropa je už na 99 dolarech, Evropa otevře poklesem 8:35EU a Kanada chystají strategické partnerství. Chtějí posílit obchod, obranu i nezávislost na velmocích 6:03ASML dostalo od klíčových zákazníků zelenou pro novou generaci litografických strojů 08.09.2026 22:01Akcie i dluhopisy oslabily, růst ropy zvýšil obavy z dalšího růstu sazeb 17:06Do popředí vystupuje paradox na zlatu 15:43Starteepo vyzvala Xerox k odemčení hodnoty finanční divize 13:29Tesla rozjíždí Cybercabs, přichází čínská automobilová expanze ve Spojených státech 11:57Po klidném létě může přijít bouřlivý podzim. Trhy čeká test inflace, dluhu i geopolitiky 11:56Volkswagen zvažuje prodej Ducati. Ikonická motocyklová značka může pomoci financovat restrukturalizaci 11:35Výnosy dluhopisů stoupají, akcie jsou pod tlakem. Není to jen o ropě a obavách z inflace 10:53Evropský AI šampion Mistral získal rekordní finance a míří mezi technologickou elitu
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Brown Lisle Cummings Inc. raised its stake in shares of NIKE, Inc. (NYSE:NKE – Free Report) by 800.0% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 20,889 shares of the footwear maker’s stock after purchasing an additional 18,568 shares during the quarter. Brown Lisle Cummings Inc.’s holdings in NIKE were worth $858,000 as of its most recent filing with the Securities and Exchange Commission.
Several other institutional investors have also bought and sold shares of the stock. Main Street Financial Solutions LLC increased its position in shares of NIKE by 4.2% in the second quarter. Main Street Financial Solutions LLC now owns 3,441 shares of the footwear maker’s stock valued at $244,000 after buying an additional 139 shares in the last quarter. ANB Bank lifted its position in shares of NIKE by 0.7% during the 4th quarter. ANB Bank now owns 25,451 shares of the footwear maker’s stock valued at $1,621,000 after buying an additional 165 shares in the last quarter. Cornerstone Wealth Management LLC lifted its position in shares of NIKE by 4.4% during the 4th quarter. Cornerstone Wealth Management LLC now owns 3,970 shares of the footwear maker’s stock valued at $253,000 after buying an additional 169 shares in the last quarter. Blue Bell Private Wealth Management LLC grew its stake in NIKE by 14.1% in the 4th quarter. Blue Bell Private Wealth Management LLC now owns 1,416 shares of the footwear maker’s stock valued at $90,000 after acquiring an additional 175 shares during the period. Finally, Laird Norton Wetherby Wealth Management LLC grew its stake in NIKE by 0.8% in the 3rd quarter. Laird Norton Wetherby Wealth Management LLC now owns 23,293 shares of the footwear maker’s stock valued at $1,624,000 after acquiring an additional 181 shares during the period. Institutional investors and hedge funds own 64.25% of the company’s stock.
NIKE Price Performance NIKE stock opened at $38.39 on Tuesday. NIKE, Inc. has a 12-month low of $37.95 and a 12-month high of $76.97. The stock has a market cap of $56.95 billion, a P/E ratio of 18.37, a PEG ratio of 1.88 and a beta of 1.10. The company has a 50-day moving average price of $41.52 and a 200 day moving average price of $45.98. The company has a current ratio of 1.96, a quick ratio of 1.36 and a debt-to-equity ratio of 0.40.
NIKE (NYSE:NKE – Get Free Report) last posted its earnings results on Tuesday, June 30th. The footwear maker reported $0.20 earnings per share for the quarter, beating the consensus estimate of $0.11 by $0.09. NIKE had a net margin of 6.70% and a return on equity of 16.54%. The company had revenue of $10.97 billion for the quarter, compared to analyst estimates of $10.85 billion. During the same period in the previous year, the business posted $0.14 EPS. NIKE’s revenue was down 1.1% on a year-over-year basis. Sell-side analysts anticipate that NIKE, Inc. will post 1.74 earnings per share for the current year. NIKE Announces Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Tuesday, September 1st will be given a $0.41 dividend. This represents a $1.64 annualized dividend and a yield of 4.3%. The ex-dividend date is Tuesday, September 1st. NIKE’s dividend payout ratio is presently 78.47%.
Wall Street Analyst Weigh In Several brokerages recently commented on NKE. Stifel Nicolaus set a $45.00 price target on shares of NIKE and gave the stock a “hold” rating in a report on Wednesday, July 1st. Wall Street Zen raised shares of NIKE from a “sell” rating to a “hold” rating in a report on Saturday, May 16th. Evercore set a $46.00 price objective on NIKE and gave the stock an “in-line” rating in a research note on Tuesday, June 23rd. Citigroup reissued a “neutral” rating on shares of NIKE in a report on Wednesday, July 22nd. Finally, BNP Paribas Exane reiterated an “underperform” rating on shares of NIKE in a research report on Wednesday, July 22nd. One equities research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, twenty have given a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat.com, NIKE currently has a consensus rating of “Hold” and an average price target of $52.94.
View Our Latest Research Report on NIKE
Insiders Place Their Bets In other NIKE news, EVP Philip McCartney sold 17,398 shares of the firm’s stock in a transaction on Friday, June 12th. The stock was sold at an average price of $46.18, for a total transaction of $803,439.64. Following the completion of the sale, the executive vice president owned 53,133 shares of the company’s stock, valued at $2,453,681.94. This trade represents a 24.67% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Amy Montagne sold 4,867 shares of NIKE stock in a transaction on Friday, August 7th. The shares were sold at an average price of $42.05, for a total value of $204,657.35. Following the completion of the sale, the insider owned 57,436 shares in the company, valued at $2,415,183.80. This represents a 7.81% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 26,142 shares of company stock valued at $1,169,380. 1.10% of the stock is currently owned by insiders.
Key Stories Impacting NIKE Here are the key news stories impacting NIKE this week:
Positive Sentiment: Some early signs of recovery are emerging in China, particularly in running, football and premium retail. However, the improvement remains preliminary and is offset by significant sales declines and ongoing inventory cleanup. NIKE’s China Business: Recovery Story or Ongoing Challenge? Positive Sentiment: Insider activity is mixed but includes purchases by CEO Elliott Hill and other directors and executives, which may indicate confidence that the depressed valuation offers long-term value. The median analyst price target of $47.50 also remains above recent trading levels, although estimates vary widely. Nike Stock Opinions on Earnings Miss and S&P 100 Removal Neutral Sentiment: Analysts and investors appear cautious, viewing the recovery as a multi-year effort requiring better product execution, stronger digital sales and improved regional performance. Nike’s dividend continues to attract some longer-term investors, but it has not overcome concerns about earnings quality and cash-flow deterioration. Negative Sentiment: S&P Dow Jones Indices will remove Nike from the S&P 100 effective September 21, ending an approximately 18-year membership. The change reflects the company’s sharp decline in market value and could reduce its visibility among index-tracking investors. Nike to lose S&P 100 place as stock sinks to 12-year low Negative Sentiment: Recent commentary highlights earnings concerns, elevated prices for basic apparel, weakness in China and digital sales, and intensifying competition from brands and retailers such as Lululemon and Dick’s Sporting Goods. These issues reinforce fears that the turnaround will take several years. Nike Has Tumbled in 2026: Is It Time to Switch? NIKE Profile (Free Report)
Nike, Inc (NYSE: NKE) is a global designer, marketer and distributor of athletic footwear, apparel, equipment and accessories. Founded in 1964 as Blue Ribbon Sports by Phil Knight and Bill Bowerman and renamed Nike in 1971, the company is headquartered near Beaverton, Oregon. Nike develops and commercializes products across performance and lifestyle categories for sports including running, basketball, soccer and training, and is known for signature technologies and design-driven product lines.
The company markets products under several primary brands, including Nike, Jordan and Converse, and sells through a combination of wholesale relationships, branded retail stores and direct-to-consumer channels such as company-operated stores and digital platforms (e.g., Nike.com and mobile apps).
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Nike has shed nearly half its value in a year, but one Wall Street analyst sees a path to almost doubling from here while the rest of the Street stays cautious. The question is whether this is a historic buying…
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Nike (NYSE:NKE | NKE Price Prediction) trades at $38.40, well below Wall Street’s average analyst price target of $50.46, a gap that implies roughly 31% upside.
Nike is the world’s largest athletic footwear and apparel brand, and its “Win Now” turnaround under CEO Elliott Hill has become one of the most closely watched consumer stories on Wall Street. At least one prominent shop thinks that consensus target is far too conservative.
How a Blue-Chip Turnaround Story Lost Nearly Half Its Value Nike shares are down 38.12% year to date and 47.35% over the past twelve months, against an S&P 500 up 12.94% and 18.65% across the same windows. Forbes recently flagged Nike’s removal from the S&P 100 as a possible capitulation signal.
The damage is fundamental. Fiscal Q1 2027 revenue slipped 1.1% year over year to $10.97 billion. Greater China fell 12% reported and 17% on a currency-neutral basis. Converse collapsed 32%. Nike Direct shrank 7%, with digital down double digits. The headline EPS beat of $0.72 versus $0.13 consensus looked flattering only because a one-time $986 million IEEPA tariff recovery added $0.52 per share. Strip that out and EPS was $0.20.
Why Needham Sees Nike Nearly Doubling Needham’s Tom Nikic carries a Buy rating and a $75 price target, a level that implies roughly 95% upside from here. His thesis rests on three pillars: wholesale channel realignment, franchise cleansing, and a strategic re-rating tied to Elliott Hill’s operational pivot.
Wholesale is already showing early proof. Nike’s retail-sales comparison at Foot Locker turned positive for the first time in four years in Q4 fiscal 2026, and North America wholesale grew 10%. Needham sees renewed shelf space at Dick’s Sporting Goods, Foot Locker, and specialty running stores as the primary volume engine, reversing years of over-indexing on direct-to-consumer.
Franchise cleansing is the harder story. Nike pulled roughly $2 billion of classic footwear off shelves in fiscal 2026, clearing space for performance platforms like Vomero and Pegasus. Nike Sportswear and Jordan Streetwear, together about half of total revenue, are expected to stay negative through the first half of fiscal 2027.
Consensus stays restrained. Ratings skew Hold-heavy across 39 analysts, and revisions have leaned lower with seven downward EPS cuts in the past 30 days. Nike’s investor day is scheduled for mid-November, and management has said Win Now actions will sunset by the end of calendar 2026. Both are potential re-rating catalysts.
Athletic Peers That Fell Even Harder The premium athletic space has been repriced across the board. Nike has plenty of company on the downside.
Lululemon Athletica (NASDAQ:LULU) is the deepest bruise in the group, down 51.59% year to date including a 17.38% single-session drop after Q2 revenue missed and guidance was cut. LULU trades near $100.61 against a $127.35 average target, implying about 27% upside. Ratings skew defensive: 1 Buy, 29 Hold, 3 Sell, and 1 Strong Sell.
On Holding (NYSE:ONON) is a growth story going through a valuation reset. Q2 revenue climbed 13.5% with a 65.4% gross margin. Shares are off 39.78% YTD at $27.99, versus a $44.69 target, an implied upside of roughly 60%. Analysts stay bullish with 7 Strong Buy and 16 Buy.
Deckers Outdoor (NYSE:DECK), parent of HOKA and UGG, has held up best, off 17.23% YTD. At $85.81 against a $122.81 target, implied upside sits near 43%.
The largest consensus upside in the group sits with On at roughly 60%, then Deckers at 43%, then Nike at 31%. Needham’s outlier $75 target on Nike would make it the biggest opportunity of the four if it plays out.
What the Consensus Really Says About Nike Nike trades at $38.40 with an average analyst target of $50.46, implying about 31% upside. Trailing P/E is 18, forward P/E is 23. Fiscal 2027 EPS consensus sits at $1.72 and fiscal 2028 at $2.23. Nike’s -38.12% YTD trails the S&P 500’s +12.94% by roughly 51 points.
The 39-analyst breakdown:
Strong Buy: 1 Buy: 10 Hold: 25 Sell: 1 Strong Sell: 2 My Take on Nike at Free-Fall Levels Nike looks compelling at these levels if Elliott Hill’s Win Now reset actually sunsets on schedule and North America wholesale momentum proves durable. The bull path is clean: Foot Locker and Dick’s shelves fill with fresh performance product, Vomero and Pegasus scale, China stops sliding, and the November investor day delivers a growth framework worth re-rating on. Get those, and Needham’s $75 stops looking heroic.
But the setup looks like a value trap on several fronts. Revenue is still shrinking. Greater China went from a 7% decline to a 12% decline in two quarters. Converse is in freefall. Nike Digital keeps shrinking. Rivals like On and HOKA keep taking running share. A 4.2% dividend yield and an $18 billion buyback leave a broken top line untouched.
The setup looks cautiously constructive at these levels. Consensus offers real if unspectacular upside, and the Needham call is a genuinely asymmetric bet if the wholesale reset holds. What keeps me off the table is that fiscal 2027 estimates are still being cut. One clean quarter of revenue stabilization would change that.
Contact [email protected] for any questions or corrections.
A former college soccer player who has emerged as a leading California critic of transgender participation in women’s sports is bringing her fight to Nike — backing a shareholder measure as investors scrutinize corporate ties to groups that support gender-transition care for minors.
Sophia Lorey, 26, was set to address Nike shareholders Tuesday on behalf of a proposal from Christian investment firm Inspire Investing that calls for greater scrutiny of the sneaker giant’s charitable partnerships.
The Vanguard University alum was expected to focus on Nike’s relationship with the Human Rights Campaign, arguing that the company’s support for the LGBTQ advocacy organization clashes with its marketing of women’s athletics, according to Bloomberg, which obtained a recording of her planned remarks.
Sophia Lorey, a former Vanguard University soccer player and outreach director for the California Family Council, has been tapped to speak in support of an investor proposal at Nike’s annual meeting Tuesday. Instagram/@sophiaslorey The Nike vote is part of a wider pressure campaign by Inspire, which manages $5.4 billion and has been questioning scores of major corporations about their policies on transgender issues.
The investment firm and its allies have contacted 242 employers seeking information about whether their health insurance plans pay for gender-related surgeries for minors, Bloomberg reported.
That campaign is separate from the Nike proxy measure backed by Lorey, a proposal that focuses on potential risks stemming from the company’s charitable giving.
Lorey was set to invoke Nike campaigns including “Play Like a Girl” and “Get Her in the Game” while challenging the sports giant’s association with groups that support transgender women competing in women’s fields, according to Bloomberg.
The shareholder proposal cites an Equal Employment Opportunity Commission investigation involving allegations of systemic race discrimination at Nike.
Former college soccer player Sophia Lorey has become a prominent advocate against allowing transgender athletes to compete in girls’ and women’s sports. Vimeo/Inspire
Nike is urging shareholders to reject a proposal calling for greater scrutiny of risks associated with the sneaker giant’s charitable partnerships. SOPA Images/LightRocket via Getty Images “Given the EEOC’s current high-profile investigation into Nike over ‘systemic race discrimination allegations’ occurring partially as a result of the company’s diversity, equity, and inclusion initiatives, investors are right to be concerned about what further brand politicization could do to company performance,” the proposal states.
Nike has told shareholders to reject the measure, maintaining that another examination of its charitable relationships would duplicate safeguards already in place.
“Charitable partnerships are approved … only after a robust due diligence review of the proposed recipient organization,” Nike’s board said in a regulatory filing cited by Bloomberg.
Sophia Lorey (center) is seen in front of the Supreme Court Building in Washington, D.C., in a photo posted to Instagram on Jan. 14, 2026. Instagram/@sophiaslorey Lorey brings an athletic background to the campaign.
The 5-foot-4 defender played women’s soccer at Vanguard from 2018 through 2021 and majored in business administration, according to university records. Vanguard competed in the NAIA during her career.
She joined the California Family Council as outreach director in 2022 and has since become a prominent advocate against transgender athletes competing in girls’ and women’s sports.
Her advocacy has also extended into schools. In July, a podcast she co-hosts promoted a campaign helping parents seek exemptions for their children from what the program called “gender ideology lessons, CRT, DEI programming” and other curriculum conflicting with their religious beliefs.
Meanwhile, Inspire has broadened its corporate campaign with backing from investors that collectively oversee more than $100 billion, according to the firm’s director of corporate engagement, Tim Schwarzenberger.
The 242 companies approached by the coalition were identified partly through the Human Rights Campaign’s Corporate Equality Index, Bloomberg reported. Inspire is seeking disclosures about their insurance coverage and other policies involving transgender issues.
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“We feel that this is an important topic, there’s regulatory, legal and financial risks,” Schwarzenberger told Bloomberg. “We think shareholders have a right to know, have a right to transparency.”
According to Inspire, Walmart told the group that its plans do not pay for gender surgeries for minors. Charles Schwab told the group it previously offered such coverage but had stopped, Bloomberg reported. Neither company commented to the outlet.
Nike has become the latest target of a conservative investor campaign scrutinizing corporate policies involving transgender issues. Getty Images The Human Rights Campaign has pushed back against the campaign, arguing that conservative shareholder initiatives targeting diversity and LGBTQ policies have failed to attract significant support from investors.
“There is no question that extraordinary political and legal pressure has made some companies less willing to publicly document their LGBTQ+ workplace practices,” HRC senior vice president Jonathan Lovitz told Bloomberg.
“But less disclosure doesn’t mean … that they have actually changed practices internally,” he added.
Nike (NKE.N) shareholders have rejected a proposal urging more transparency on its climate goals, including disclosing details on how the sportswear maker intends to reach emissions-reduction targets, the company said on Tuesday.
The shareholder resolution resurfaced questions about the extent to which Nike, which for decades has positioned itself as a climate leader, is prioritizing its environmental targets as it faces financial strain, U.S. political pressure and global regulatory scrutiny of misleading environmental claims.
Oregon-based Nike said in 2019 it aims to reduce its carbon emissions by 65% across its own operations and by 30% across its supply chain by 2030. In a fiscal 2024 update, it said its supply chain emissions had fallen 11% from a 2015 baseline.
The company, which has a market capitalization of about $56 billion, did not release shareholder vote tallies.
Norway's wealth fund, Nike's 11th-biggest shareholder according to LSEG data, this week said it would back the push for more transparency.
"It's not that we think Nike is completely dropping the ball here. It's more that we want to know what's really going on," said Giovanna Eichner, shareholder advocate at Green Century Capital Management, which introduced the climate proposal. "It's unclear if there's that same level of commitment toward achieving the goals."
Nike's impact report in 2024 detailed its efforts to use recyclable polyester and rubber and help factories in its supply chain source renewable energy. Last year, details about those climate initiatives were replaced by a list of data points on emissions and waste.
Nike's board urged shareholders to vote against the proposal, arguing in a filing that the company remains committed to reducing greenhouse gas emissions and management is "best positioned to determine the targets and related disclosures that are appropriate."
The athletic footwear maker is grappling with slumping sales, eroded market share and a push by CEO Elliott Hill to reinvigorate product innovation nearly two years into his tenure. Shares have fallen about 40% so far this year.
EXECUTIVE COMPENSATION APPROVED
Shareholders on Tuesday ultimately supported the company's contested proposal to approve executive compensation. Hill's total compensation was more than $36 million for fiscal 2026.
Norway's wealth fund had said it would vote against executives' compensation, arguing that Nike's board "should ensure that all benefits have a clear business rationale." Proxy advisers Glass Lewis and Institutional Shareholder Services had recommended voting against the compensation packages.
A proposal from a group of conservative investors urging Nike to exclude gender-transition surgery for minors in employee health plans also failed to pass. The resolution, part of a broader campaign against employers, added to scrutiny of Nike over its diversity policies.
Nike remains overvalued at a 22.36x forward P/E despite a 50% share price decline and a 12-year low. Persistent margin compression, declining sales, and a free cash flow payout ratio above 100% increase the risk of a dividend cut within 6–12 months. Competitive pressures from adidas, Deckers, and others threaten NKE's footwear market share, with turnaround prospects likely 24–36 months away.
China’s Athleisure Boom Is Not Lifting Every Brand EquallyNIKE NYSE: NKE used its 46th annual shareholder meeting to outline progress in its business reset, emphasizing a sport-focused operating model, growth in performance categories and efforts to improve its marketplace execution.
Executive Chairman Mark Parker said shareholders voted on six proposals, including director elections, executive compensation, auditor ratification, an amended employee stock purchase plan and two shareholder proposals. The company later reported that all 11 director nominees were elected, PricewaterhouseCoopers was ratified as the independent auditor for the current fiscal year, and the amended and restated employee stock purchase plan was approved. The shareholder proposals concerning charitable-support discrimination and environmental targets were not approved.
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Nike Q4 Beat Masks Core Weakness as Analysts Cut Price TargetsParker also thanked departing director John Rogers for eight years of service, adding that Rogers will remain an adviser to the company.
Leadership and operating-model changes President and CEO Elliott Hill said NIKE has spent fiscal 2026 strengthening the business foundation through its “Win Now” strategy and its new “Sport Offense” operating model. The company shifted roughly 8,000 employees into vertical sport teams, a move Hill said is intended to connect athlete insights more closely with product development, marketing, marketplace execution and operations.
3 Dividend Stocks With Insiders Buying in 2026“When we focus on sport, we win,” Hill said, describing the model as a way to create more distinct products and move more quickly across sports categories.
NIKE also introduced Dave Denton, who had joined the company a few weeks earlier as chief financial officer. Denton said his initial meetings across the company highlighted employees’ focus on athletes, innovation and the global reach of the NIKE, Jordan and Converse brands.
Performance growth and marketplace efforts Hill said NIKE’s performance business grew by mid-single digits during fiscal 2026, while NIKE Running grew at a double-digit rate. He pointed to running as an early example of the Sport Offense model at work, saying the business produced five consecutive quarters of double-digit currency-neutral growth by the end of fiscal 2026 and added roughly $1 billion in revenue over that period.
According to Hill, NIKE gained five points of running market share in statement footwear across Western Europe and North America, more than any other top-five brand in those markets.
Global football also showed momentum, he said. By the first week of the World Cup, NIKE’s “Rip the Script” campaign had received 1.5 billion views, while the Mercurial became NIKE Direct’s fastest-selling 24-hour cleated-footwear launch.
Wholesale revenue rose 4% for the fiscal year, led by double-digit growth in North America, Hill said. The company refreshed more than 15,000 spaces at wholesale doors worldwide and updated more than 150 NIKE Direct stores with sport-led experiences.
Hill said overall results remain below the company’s objectives. NIKE Sportswear and Jordan Streetwear remain challenged, while Greater China and Converse are undergoing resets. The company reduced classic footwear franchises by more than $2 billion in fiscal 2026, tightened product buys and is seeking to reposition its sportswear offerings around community, innovation and sport.
China, capital allocation and innovation Addressing shareholder questions, Hill said NIKE remains committed to the Chinese consumer and is working to regain market share through sport. The company is cleaning up the Greater China marketplace, improving digital and physical storefronts, and empowering local teams to develop more locally created products and consumer storytelling, he said.
Denton said NIKE’s capital-allocation priorities include continued investment in the brand, athlete service, innovation and long-term growth while preserving financial flexibility. He said the company returned approximately $2.4 billion to shareholders through dividends last year.
Hill said NIKE remains confident in its innovation pipeline, citing NIKE Mind, AeroFit, ongoing development of NIKE Air and an upcoming ACG outdoor-running platform called Radical Air. He said future innovation will be more explicitly sport-led rather than developed simply for novelty.
NIKE plans to provide additional details about its strategy and next phase of growth at its Investor Day on Nov. 16 and 17.
Shareholder proposals rejected Shareholders rejected a proposal requesting a report on discrimination in charitable support. Inspire Investing Portfolio Manager and Director of Corporate Engagement Tim Schwarzenberger presented the proposal, which focused on NIKE’s partnerships and practices related to gender ideology and transgender medical interventions for minors. The board had recommended a vote against the proposal.
Shareholders also rejected a Green Century Capital Management proposal seeking a report on how NIKE intends to meet its existing science-based emissions-reduction targets. Green Century Shareholder Advocate Giovanna Eichner argued that greater disclosure was needed regarding supply-chain emissions, climate initiatives and progress toward the company’s 2030 targets. NIKE’s board also recommended a vote against that proposal.
About NIKE (NYSE:NKE)Nike, Inc NYSE: NKE is a global designer, marketer and distributor of athletic footwear, apparel, equipment and accessories. Founded in 1964 as Blue Ribbon Sports by Phil Knight and Bill Bowerman and renamed Nike in 1971, the company is headquartered near Beaverton, Oregon. Nike develops and commercializes products across performance and lifestyle categories for sports including running, basketball, soccer and training, and is known for signature technologies and design-driven product lines.
The company markets products under several primary brands, including Nike, Jordan and Converse, and sells through a combination of wholesale relationships, branded retail stores and direct-to-consumer channels such as company-operated stores and digital platforms (e.g., Nike.com and mobile apps).
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Nike (NKE -0.95%) is facing some considerable challenges these days. That much is obvious. The business is struggling to generate much growth, margins are down, and competition is up. Unsurprisingly, the stock hasn't been doing well.
But given how disastrous its performance has been -- it's declined 76% in five years -- investors may feel tempted to buy the shoe stock at its seemingly dirt cheap valuation. This is, after all, still Nike. It's a popular consumer brand, and while it's fallen on hard times, the company is making efforts to turn its business around.
Has the stock bottomed out, and is now a good time to buy it, or is there still the risk that it could go even lower?
Image source: Getty Images.
The company has been steady of late, but that hasn't been enough for investorsNike reported 0% revenue growth in its most recent fiscal year, which ended on May 31. Virtually no growth at all on the top line. Digging a bit deeper, the story, however, becomes a bit more complex. Its business grew by 5% in North America but declined by 13% (excluding foreign exchange effects) in Greater China, a key market for Nike.
The company's challenges in growing revenue aren't new. Revenue totaled more than $46 billion this past fiscal year, but just two years ago it was north of $51 billion. Despite weaker comparables, the company's growth rate still isn't high, which could be a worrisome sign that its turnaround under CEO Elliott Hill isn't going all that well. Meanwhile, tariffs and trade uncertainty may continue to impact the business; it's tough to convince investors to take a chance on Nike right now.
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The stock doesn't look so cheap based on expected earningsEven though Nike's stock has taken a beating in recent years, its bottom line has also shrunk along the way. The end result is a stock that really isn't all that cheap. Based on analyst expectations, it's trading at a forward price-to-earnings multiple of nearly 23. That's actually higher than what the average stock on the S&P 500 trades at -- 21 times future profits.
Nike's stock can still go lower, especially if economic conditions don't improve. Consumers are scaling back on discretionary purchases, rising costs remain a concern, and buying Nike products right now may be difficult for many customers to justify. As bad as things are for Nike, they could still get worse, which is why I'd avoid the stock for the foreseeable future.
NIKE sees early China traction in running, football and premium retail, but steep sales declines and inventory cleanup show the recovery remains at an early stage.
is about to lose its place in Wall Street's most exclusive indexes, ending a nearly 18-year run and highlighting how far the sportswear leader's market standing has fallen.
The company will leave the S&P 100 on September 21 during the index's rebalance. Dell Technologies, Palo Alto Networks, Arista Networks and SanDisk are among four technology companies replacing Nike and three other names. Nike will remain in the S&P 500, meaning the decision does not remove it from the broader benchmark.
The S&P 100 tracks a select group of established U.S. companies. Removal can trigger trading by funds and products following the index, but it does not change Nike's operations or brand portfolio. The larger significance is symbolic: four technology companies are displacing established businesses, including a consumer icon.
Nike's market capitalization has fallen to approximately $57 billion following weak growth. Fiscal 2026 revenue was nearly flat at $46.4 billion, while Nike Direct, digital sales and Greater China revenue declined.
Those weak areas matter because Nike previously emphasized direct-to-consumer sales and digital relationships. Product-category cuts, reduced emphasis on wholesale and weaker digital marketing contributed to inventory difficulties and lost shelf space at some retailers. Critics have also questioned branding decisions.
For investors, September 21 creates potential short-term technical pressure as index-linked portfolios adjust. However, such flows are secondary to whether Nike's turnaround can restore sales and margins.
The technology-heavy replacement slate sends a broader market signal. Dell, Palo Alto, Arista and SanDisk represent computing, cybersecurity, networking and storage, areas benefiting from enterprise and AI investment.
Nike's continued S&P 500 membership limits the immediate damage, but its removal remains a warning. Investors should watch wholesale relationships, inventory normalization, Chinese demand, digital sales and product innovation. Returning to elite-index relevance will require Nike to convert its cultural reach into consistent financial growth.
Investors have been waiting for Nike (NKE -0.95%) stock to hit bottom and start to move up for a long time, but it just keeps going lower.
Since its peak in November 2021, when it traded near $180 per share, Nike stock has plummeted by about 78% to its current price of $38.50 per share. The stock price has not been this low in about 12 years.
This year, the stock price is down about 40% year-to-date, as hopes of a turnaround under new CEO Elliott Hill have been derailed by weak demand and sputtering revenue in a challenging market marked by high inflation, tariffs, and intense competition in the wholesale market that Nike is now trying to reenter.
Image source: Getty Images.
Is Nike stock finally a buy? A major problem for Nike stock is that, despite a long, steady five-year decline, Nike stock remained overvalued. As recently as June, it was trading at 30 times earnings. For a company that had flat revenue last fiscal year and suffered a 3% decline in earnings, a price/earnings ratio of 30 is just way too high.
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But a continued decline in shares through the summer has finally brought down Nike's P/E ratio to a more reasonable 18. It is still too high, given Nike's sluggish earnings outlook. On its fiscal Q4 earnings call in June, Nike management said it expects the difficult environment to remain the same over the next six months, with revenue to be down slightly. But tighter cost controls are anticipated to bring flat earnings and improve cost margins.
So has Nike reached bottom? I honestly don't think so -- not yet. It is getting closer to the buy zone, but the P/E is still too high for its tepid earnings outlook.
Dave Kovaleski 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 is set to lose its place in the S&P 100 after nearly 18 years, highlighting the extent of the sportswear giant’s decline as a prolonged growth slowdown and intensifying competition weigh on its market value.
S&P Dow Jones Indices will remove Nike from the index effective September 21 as part of its quarterly rebalancing.
Honeywell Aerospace, Simon Property Group and Colgate-Palmolive will also be removed.
Dell Technologies, Palo Alto Networks, Arista Networks and SanDisk will move up from the S&P 500 to fill the four vacancies, increasing the technology sector’s representation in the S&P 100.
Nike will remain in the broader S&P 500, but its removal from the S&P 100 underscores how dramatically its market position has changed in recent years.
Nike’s market capitalization now stands at roughly $57 billion after a prolonged selloff.
Shares closed at $38.40 on Friday, September 4, about 50% below their 52-week high of $76.97 and their lowest level in roughly 12 years.
The stock has fallen 39.3% this year and 48.2% over the past 12 months.
From its record closing level of $179.10 reached on November 5, 2021, Nike has lost nearly 80%, wiping out roughly $230 billion in market value.
The decline has pushed Nike from the ranks of the largest and most valuable US companies, even though it remains one of the world’s biggest sportswear brands.
The deterioration has also been reflected in the company’s financial performance.
Nike’s revenue declined from $51.2 billion in fiscal 2023 to $46.4 billion in fiscal 2026, while its operating margin fell from 15.6% in fiscal 2021 to 8.2% in fiscal 2026.
Nike’s most recent quarterly results offered some signs of resilience, but the company’s outlook continued to weigh on investor sentiment.
The company reported fiscal fourth-quarter adjusted earnings of 20 cents per share, excluding a 52-cent benefit related to the expected recovery of import tariffs.
Revenue fell 1.1% year over year to $11 billion.
Both figures came in slightly ahead of Wall Street expectations.
Analysts surveyed by LSEG had expected earnings of 13 cents per share on revenue of $10.9 billion.
However, investors focused more heavily on what comes next.
Nike expects sales to continue declining through the first half of fiscal 2027 as it contends with tariff pressures, geopolitical uncertainty and cautious consumer spending.
The company now expects revenue to decline by low- to mid-single digits between March and November, compared with its previous forecast for a low-single-digit decline.
Earnings are also expected to remain broadly flat over the same period.
The revised outlook has made it difficult for investors to determine when Nike’s prolonged downturn might finally bottom out.
China remains a major problem for NikeOne of the biggest challenges is Nike’s performance in China, where the company has struggled to maintain its previous momentum.
Nike’s business in the country has declined for eight consecutive quarters, while its overall China operation has contracted by roughly 30% since 2021.
Annual revenue in the market reached an eight-year low at the end of May, marking a sharp reversal for a region that was once one of Nike’s most important growth engines.
The weakness has coincided with stronger competition from brands such as On, Hoka and New Balance, particularly in performance footwear.
Nike has also struggled to reignite growth in its footwear business, while weakness in its direct-to-consumer operations has added another challenge.
The combination has left the company attempting to rebuild demand while protecting profitability at a time when consumers remain selective.
CEO Elliott Hill has said Nike is focused on rebuilding the foundations of the business through product innovation, brand strength, marketplace execution and cost efficiency.
The company’s ability to execute that turnaround will be crucial as investors look for evidence that the years-long decline can be reversed.
Nike remains profitable and continues to generate substantial cash, despite the pressure on revenue and margins.
It returned about $2.5 billion to shareholders in fiscal 2026, including $2.4 billion in dividends and $123 million in share buybacks.
However, the S&P 100 removal serves as a reminder that Nike’s scale alone is no longer enough to shield it from changing market dynamics.
The company now faces the challenge of proving that its brand can once again translate into sustained growth, particularly in performance footwear and China.
For investors, the sharp decline in Nike’s valuation could eventually create an opportunity if Hill’s turnaround strategy succeeds.
But with revenue still falling, margins under pressure and management expecting further declines ahead, the company has yet to demonstrate that its recovery has reached a decisive turning point.
AlphaGrep UK Ltd purchased a new stake in NIKE, Inc. (NYSE:NKE – Free Report) during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 21,771 shares of the footwear maker’s stock, valued at approximately $894,000.
Several other institutional investors also recently added to or reduced their stakes in the company. Westerkirk Capital Inc. lifted its stake in shares of NIKE by 52.4% during the 4th quarter. Westerkirk Capital Inc. now owns 131,220 shares of the footwear maker’s stock worth $8,360,000 after purchasing an additional 45,100 shares during the period. OMERS ADMINISTRATION Corp raised its position in shares of NIKE by 77.9% in the 4th quarter. OMERS ADMINISTRATION Corp now owns 2,526,179 shares of the footwear maker’s stock valued at $160,943,000 after purchasing an additional 1,106,499 shares in the last quarter. OneDigital Investment Advisors LLC lifted its position in shares of NIKE by 32.8% during the second quarter. OneDigital Investment Advisors LLC now owns 244,296 shares of the footwear maker’s stock worth $10,028,000 after purchasing an additional 60,375 shares during the last quarter. Nicholas Company Inc. increased its holdings in shares of NIKE by 33.3% in the 4th quarter. Nicholas Company Inc. now owns 123,652 shares of the footwear maker’s stock valued at $7,878,000 after acquiring an additional 30,890 shares during the last quarter. Finally, Deutsche Bank AG raised its stake in NIKE by 8.0% during the second quarter. Deutsche Bank AG now owns 3,566,634 shares of the footwear maker’s stock worth $146,410,000 after acquiring an additional 264,576 shares during the period. Institutional investors and hedge funds own 64.25% of the company’s stock.
Wall Street Analysts Forecast Growth NKE has been the topic of a number of research analyst reports. China Renaissance lowered their price objective on shares of NIKE from $50.30 to $47.30 and set a “hold” rating on the stock in a research note on Thursday, July 2nd. BTIG Research reissued a “buy” rating and issued a $55.00 price objective on shares of NIKE in a research report on Wednesday, July 1st. CICC Research lowered their price objective on NIKE from $58.00 to $44.80 and set a “neutral” rating on the stock in a research report on Thursday, July 2nd. Royal Bank Of Canada reiterated a “sector perform” rating and issued a $45.00 target price on shares of NIKE in a research note on Tuesday, August 25th. Finally, Oppenheimer cut their price objective on shares of NIKE from $120.00 to $60.00 and set an “outperform” rating on the stock in a report on Friday, June 26th. One investment analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, twenty have assigned a Hold rating and four have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $52.94.
View Our Latest Research Report on NIKE NIKE Trading Down 1.0% Shares of NKE stock opened at $38.39 on Friday. NIKE, Inc. has a 1 year low of $37.95 and a 1 year high of $76.97. The company’s fifty day simple moving average is $41.58 and its two-hundred day simple moving average is $46.28. The company has a debt-to-equity ratio of 0.40, a current ratio of 1.96 and a quick ratio of 1.36. The stock has a market capitalization of $56.95 billion, a price-to-earnings ratio of 18.37, a PEG ratio of 1.90 and a beta of 1.10.
NIKE (NYSE:NKE – Get Free Report) last released its quarterly earnings results on Tuesday, June 30th. The footwear maker reported $0.20 EPS for the quarter, topping analysts’ consensus estimates of $0.11 by $0.09. NIKE had a net margin of 6.70% and a return on equity of 16.54%. The business had revenue of $10.97 billion during the quarter, compared to analysts’ expectations of $10.85 billion. During the same quarter in the previous year, the company earned $0.14 EPS. The business’s quarterly revenue was down 1.1% compared to the same quarter last year. As a group, analysts anticipate that NIKE, Inc. will post 1.74 earnings per share for the current year.
NIKE Dividend Announcement The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Tuesday, September 1st will be paid a $0.41 dividend. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $1.64 annualized dividend and a dividend yield of 4.3%. NIKE’s dividend payout ratio (DPR) is 78.47%.
Insiders Place Their Bets In other NIKE news, CFO Matthew Friend sold 2,463 shares of the stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $41.60, for a total value of $102,460.80. Following the sale, the chief financial officer owned 82,165 shares in the company, valued at $3,418,064. This trade represents a 2.91% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Philip McCartney sold 17,398 shares of the business’s stock in a transaction that occurred on Friday, June 12th. The stock was sold at an average price of $46.18, for a total transaction of $803,439.64. Following the completion of the transaction, the executive vice president directly owned 53,133 shares of the company’s stock, valued at $2,453,681.94. This trade represents a 24.67% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders have sold 26,142 shares of company stock worth $1,169,380. Company insiders own 1.10% of the company’s stock.
NIKE News Roundup Here are the key news stories impacting NIKE this week:
Positive Sentiment: Analysts are bullish on Nike among selected consumer-cyclical companies, supporting the view that the stock’s depressed valuation could offer upside if the company executes its turnaround. Analysts Are Bullish on These Consumer Cyclical Stocks: Nike (NKE), Ferrari (RACE) Positive Sentiment: Nike is expanding its Strength Pro Equipment business with customizable Power Rack systems installed at prominent athletic facilities, including U.S. Soccer, USC and professional women’s sports venues. The initiative could deepen institutional relationships and create a broader growth opportunity beyond footwear and apparel. Nike’s Custom Power Racks Might Change The Case For Investing In NIKE (NKE) Neutral Sentiment: Some investment coverage describes Nike as potentially undervalued after its steep decline, while emphasizing that the opportunity depends on stabilizing margins and successfully improving the business. Recent earnings also showed an EPS beat and slightly stronger-than-expected revenue, although sales declined year over year. Down almost 80%, is Nike stock undervalued or a value trap? Neutral Sentiment: Broader market conditions could affect NKE: investors are focused on the August employment report because it may influence the Federal Reserve’s interest-rate decision later this month. Apparel and luxury-goods stock screens also continue to identify Nike as a company worth watching. 5 Things to Know Before the Stock Market Opens on Friday Negative Sentiment: Bearish commentary says Nike faces a difficult turnaround and that its current valuation may provide limited margin of safety, raising the risk that the stock is a value trap if profitability and demand do not recover. Nike: A Difficult Turnaround At A Price That Offers Little Margin of Safety Negative Sentiment: Nike is reportedly closing 11 U.S. stores, signaling continued efforts to rationalize its retail footprint and potentially reflecting weaker store economics or changing shopping patterns. Nike closes 11 stores across the US NIKE Profile (Free Report)
Nike, Inc (NYSE: NKE) is a global designer, marketer and distributor of athletic footwear, apparel, equipment and accessories. Founded in 1964 as Blue Ribbon Sports by Phil Knight and Bill Bowerman and renamed Nike in 1971, the company is headquartered near Beaverton, Oregon. Nike develops and commercializes products across performance and lifestyle categories for sports including running, basketball, soccer and training, and is known for signature technologies and design-driven product lines.
The company markets products under several primary brands, including Nike, Jordan and Converse, and sells through a combination of wholesale relationships, branded retail stores and direct-to-consumer channels such as company-operated stores and digital platforms (e.g., Nike.com and mobile apps).
Recommended Stories Five stocks we like better than NIKE Revolution Medicines Got Its Breakthrough—What Moves It Next? Retail Earnings Just Exposed a Bigger Divide in the U.S. Consumer Economy FB Financial’s Southern Expansion and Buybacks Drive Analyst Optimism AST SpaceMobile Stock Soared 12%—This Was the Catalyst Want to see what other hedge funds are holding NKE? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for NIKE, Inc. (NYSE:NKE – Free Report).
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While it has served its purpose as the main US equity index in the past, the Dow Jones Industrial Average in the modern day is considered a less representative major index than other alternatives like the S&P 500 and Nasdaq. With the lagging performance aside, there have been some notable big winners among the index's 30 components.
Elliott Hill, President and Chief Executive Officer of NIKE, Inc. (NKE -0.95%), reported the disposition of 9,462 shares of Class B Common Stock on September 1, 2026, according to a recent SEC Form 4 filing.
Transaction summaryMetricValueTransaction value~$369,600Shares sold9,462 sharesPost-transaction shares (directly held)373,729 sharesPost-transaction value$14.25 millionTransaction value based on SEC Form 4 weighted average sale price ($39.06); post-transaction value based on September 01, 2026 market close ($38.12).
Key questionsWhat prompted this disposition of Class B Common Stock?
The shares were withheld by the company to meet tax requirements following the vesting of a restricted stock unit (RSU) award and did not occur as an open-market sale.How does this impact the CEO's overall equity exposure?
The CEO remains a substantial stakeholder with a direct position valued at $14.25 million as of the September 1, 2026 market close, representing a total insider ownership of 0.0253%.What additional equity interests does the insider hold?
Beyond direct common stock, the CEO holds 395,570 derivative securities, including unvested awards that vest in annual increments over a four-year term.Company OverviewMetricValueShare Price (as of market close 2026-09-02)$38.24Market Capitalization$56.5 billionRevenue (TTM)$46.4 billionNet Income (TTM)$3.1 billionCompany SnapshotNIKE designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories globally across all ages and genders, generating revenue through direct sales and distribution of branded products including the Jumpman trademark and Converse subsidiary brands.The company operates through a vertically integrated business model combining product design and development with direct-to-consumer retail channels, wholesale partnerships, and digital commerce platforms to maximize market penetration and brand control.NIKE primarily serves athletes, fitness enthusiasts, and casual consumers across developed and emerging markets, with particular strength in North America, Europe, and Asia-Pacific regions through both premium athletic and lifestyle segments.NIKE, Inc. represents a global leader in athletic footwear and apparel with a market cap of $56.5 billion, demonstrating substantial scale and market presence. The company leverages iconic brand equity, extensive distribution networks, and continuous product innovation to maintain competitive differentiation in the consumer cyclical sector.
NIKE executes a sophisticated omnichannel strategy combining direct-to-consumer initiatives with wholesale partnerships to capture market share across diverse demographic segments and geographies.
What this transaction means for investorsCEO Elliott Hill's Sept. 1 sale of NIKE stock at $39.06 per share came just days before the stock sank to a 52-week low of $37.95 on Sept. 3. That said, the timing was coincidental, since the disposition was a non-discretionary transaction executed to fulfill tax withholding obligations in connection with the vesting of RSUs.
An RSU is a form of compensation where a company grants an employee shares of stock at a future date. When that vesting date arrives, as was the case here, a "sell to cover" transaction occurs to pay the related taxes.
NIKE stock hit a low point recently due to ongoing struggles with the business. In the company's 2026 fiscal year ended May 31, revenue of $46.4 billion was just a tad above the prior year's $46.3 billion.
Although its North American sales rose 3% year over year, the athletic footwear leader saw its China revenue plunge 12% as it prepares to make changes to its digital strategy in that country. Wall Street analysts predict a $1 billion headwind for NIKE as a result of the changes, contributing to the share price decline.
Robert Izquierdo 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.
Slumping sneaker seller Nike shuttered of a total of 11 of its U.S. stores in July alone, according to a report — including one location in a popular upscale shopping center in Northern California.
The closures impacted states across the country, including Texas, New Jersey, Illinois, North Carolina, Georgia, Florida, Missouri, Maryland, and Kentucky.
Nike closed 11 stores nationwide in the month of July alone, including a store in San Jose. Bloomberg via Getty Images In California, the brand permanently shuttered its location at the busy Santana Row mall in San Jose — a top shopping stop for minted tech workers.
Federal Realty, which operates the center, told the Silicon Valley Business Journal that the departure was “not a decision specific to this market or property” — and part of a broader shift, as the company tries to find the way forward.
Despite the closure, the Golden State still has the most Nike locations in the country with 39 stores.
The California Post reached out to Nike for comment on the closures.
The downsizing comes as Nike announced major global operations changes in April of this year — laying off approximately 1,400 employees working in global operations, mostly in the technology sector.
The company laid off 1,400 employees in April as part of a major change in global operations. Gado via Getty Images
Sales in Nike stores were down 7% in the fourth fiscal quarter of 2026, according to the company. Getty Images Download The California Post App, follow us on social, and subscribe to our newsletters California Post News: Facebook, Instagram, TikTok, X, YouTube, WhatsApp, LinkedIn
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The changes were designed to optimize the company’s supply chain footprint and modernize their use of technology to create “a more responsive, resilient, responsible, and efficient company,” according to Nike.
The iconic brand has been in a sales slump, with both footwear and equipment showing negative growth, revenue from Nike stores down 7%, and Converse revenue down 32%. Nike Direct revenue fell 9%, while Nike Digital was fell by 12%.
Niki President and CEO Elliot Hill acknowledged the company’s struggles in their June 2026 fourth-quarter earnings call.
“We know we’re not living up to our full potential,” said Hill.
Nike (NKE +1.39%) is the largest athletic apparel and footwear company in the world, by far. However, although it's still the leader, cracks are letting in competitors, and it no longer controls the market.
Nike investors have noticed, and the stock now trades about 79% off its high and down 35% over the past decade. That suggests massive disappointment. What's going on?
Keeping its top spot Nike management wasn't reading the room and made a few missteps a few years ago that are still impacting it today. There were several converging factors, as there usually are in these cases, but the main ones were cutting off wholesale relationships and relying too much on its storied franchises.
Image source: Nike
Together, this was a lethal combination because customers looking for great sportswear options weren't even seeing Nike in stores. Management was too confident in its leading position and fan loyalty, but consumers ended up finding competing brands like Hoka (owned by Deckers Outdoor) and Brooks (owned by Berkshire Hathaway) in other stores. The company has a new CEO, and it's now winding its way back to wholesale partners and innovation.
So far, there are glimmers of a rebound, but performance is still under pressure. In the 2026 fiscal fourth quarter (ended May 31), revenue was down 1% year over year, driven by a 4% increase in wholesale. That's a positive development, and it's been trending that way over fiscal 2026. It's definitely headed in the right direction, but there's more work to be done.
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In the meantime, the dividend yields 4.3%, which is a great benefit for shareholders who have held on. But new investors shouldn't expect a quick turnaround for Nike.
Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway, Deckers Outdoor, and Nike. The Motley Fool has a disclosure policy.
Nike (NKE +0.76%) stock is down 78% from its 2021 all-time high -- the steepest drop in the company's history. Sales remain under pressure, and there's no clear catalyst for a near-term rebound.
But margins are stabilizing -- a sign that things are moving in Nike's favor as it continues its turnaround. If profitability continues to firm up and sales eventually recover, this could set up a rare chance to buy the world's leading footwear and sports apparel brand at a value price.
Image source: The Motley Fool.
Stabilizing margins Nike's financials are messy. In fiscal 2026 (which ended in May), sales fell 1% year over year. A company with $46 billion in annual revenue isn't going to flip back to strong growth overnight. That's why investors should focus on early signals that the turnaround is working, such as gross margin performance.
In its latest reporting period (the fourth quarter of its fiscal 2026), Nike's cost of sales fell 16% year over year. That supported the gross margin, which improved to 49.2% from 40.3% in the year-ago quarter. It further drove a 21% increase in gross profit despite the decline in sales.
While that jump was tied to a tariff refund, the underlying trend is still improving. Excluding the refund, gross margin was 40.2% -- down just 10 basis points from the prior quarter and better than management's expectation for a 25- to 75-basis-point decline.
Management now expects gross margin to expand beginning in the first quarter of fiscal 2027 (ending in August). That's earlier than planned and points to structural cost improvements coming through in the supply chain.
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Why the stock is a buy Management still expects revenue to fall in the low- to mid-single-digit range this quarter. But part of that reflects a deliberate shift: pulling back on discounts and leaning harder into full-price sales. That can weigh on near-term revenue momentum while strengthening margins and earnings power.
Also, fiscal 2026's headline decline masks momentum in key categories like running. That suggests the issue isn't the brand -- it's the product mix. Nike's running category has now posted five straight quarters of double-digit growth, helping drive market-share gains across Western Europe and North America.
Nike shares trade at 23 times fiscal 2027 earnings estimates. That looks fair, but it also understates how inexpensive the stock could be if earnings rebound. Analysts expect earnings to reach $2.71 billion by fiscal 2029, which implies a cheaper forward multiple of 14 on those future earnings.
Nike still has to execute to get there. But the push toward supply chain efficiency and higher full-price sales lays the groundwork for stronger long-term profitability. This won't be a smooth turnaround, but the stock is priced low enough that if Nike simply meets consensus estimates from here, patient investors could see some upside.
Key Takeaways NIKE is reducing inventory and wholesale orders to address weak Sportswear and Jordan Streetwear demand.EMEA's lower promotions cut off-price business by over 50% and improved full-price realization.New footwear launches and fiscal 2026 cost actions are expected to support healthier inventory and margins. NIKE, Inc. (NKE - Free Report) is undertaking an inventory cleanup to clear older and slower-moving products and create room for newer, more innovative offerings. The company is tightening inventory purchases, reducing future sell-in and adjusting wholesale order books in response to the recent sell-through trends. These measures are aimed at addressing weak demand in Sportswear and Jordan Streetwear, where challenging sell-through has resulted in elevated discounting and softer future orders.
The inventory cleanup is intended to create a healthier marketplace and improve profitability over time. In EMEA, NIKE sharply reduced promotional activity, resulting in a more than 50% decline in its off-price business and a 15-point improvement in full-price realization. The company is also taking actions to reduce supply and accelerate the liquidation of excess inventory.
NIKE Sportswear plans to launch more than a dozen new footwear styles, each designed around distinct consumer needs and experiences. While these initiatives are expected to strengthen the business, management noted that it will take time for the new products to scale and deliver consistent results. Across the business, NIKE is emphasizing greater operational discipline, improved planning and inventory management, and margin expansion over time.
While the inventory cleanup is expected to weigh on near-term sales through reduced shipments and lower promotional activity, it could strengthen NIKE’s business over the long term. NIKE anticipates fiscal 2027 revenues to decline in the low- to mid-single-digit range as it prioritizes healthier inventory levels and a more balanced marketplace. The company’s continued momentum in performance categories, particularly Running, should support a healthier product mix.
However, the benefits of these initiatives are expected to take time to materialize as NIKE continues to address elevated inventory and weak demand in certain markets. Over the longer term, the company could benefit from reduced discounting, stronger full-price realization, healthier inventory levels and improved gross margins. Management expects the supply-chain and cost actions taken in fiscal 2026 to contribute to margin expansion in fiscal 2027.
NKE’s Peerslululemon athletica inc. (LULU - Free Report) is putting greater emphasis on product newness, technical performance and innovation. LULU is focusing on tighter inventory management to better align merchandise levels with consumer demand. lululemon is working to improve inventory productivity, optimize assortments and reduce excess stock, which should help limit markdowns and support healthier margins. The company has been specifically increasing the frequency and breadth of new styles while maintaining its premium positioning.
adidas AG (ADDYY - Free Report) is strengthening its inventory management by aligning product purchases more closely with consumer demand and sell-through trends. The company is reducing excess and slow-moving inventory while improving product availability and assortment freshness. By maintaining healthier inventory levels and prioritizing high-demand products, adidas aims to limit markdowns, improve full-price sales and support gross-margin expansion.
NKE’S Price Performance, Valuation and EstimatesShares of NIKE have lost 35.4% in the past six months compared with the industry’s decline of 30%.
Image Source: Zacks Investment Research
From a valuation standpoint, NKE trades at a forward price-to-earnings ratio of 20.64X compared with the industry’s average of 18.38X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NKE’s fiscal 2027 and fiscal 2028 earnings per share (EPS) implies year-over-year growth of 10.1% and 34.5%, respectively. The company’s EPS estimate for fiscal 2027 has been stable while that of fiscal 2028 has moved south in the past 30 days.
Nike (NKE - Free Report) closed the most recent trading day at $39.06, moving -1.36% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.33%. Meanwhile, the Dow experienced a drop of 0.7%, and the technology-dominated Nasdaq saw a decrease of 0.12%.
The athletic apparel maker's stock has dropped by 5.06% in the past month, falling short of the Consumer Discretionary sector's gain of 2.03% and the S&P 500's gain of 3.87%.
Investors will be eagerly watching for the performance of Nike in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 1, 2026. It is anticipated that the company will report an EPS of $0.44, marking a 10.2% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $11.43 billion, down 2.44% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.74 per share and a revenue of $46.24 billion, indicating changes of +10.13% and -0.35%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Nike. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.04% downward. Right now, Nike possesses a Zacks Rank of #3 (Hold).
In the context of valuation, Nike is at present trading with a Forward P/E ratio of 22.77. Its industry sports an average Forward P/E of 12.58, so one might conclude that Nike is trading at a premium comparatively.
It's also important to note that NKE currently trades at a PEG ratio of 1.76. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Shoes and Retail Apparel industry stood at 1.59 at the close of the market yesterday.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 44, positioning it in the top 18% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
There is a downside to the current consensus estimates for Nike Inc (NYSE:NKE) for fiscal 2027 earnings, according to JPMorgan.
• Nike stock is showing downward bias. What’s the outlook for NKE shares?
The Nike Analyst: Analyst Matthew Boss reiterated an Underweight rating on the stock.
The Nike Thesis: The company is likely to generate earnings of $1.55 per share in fiscal 2027 versus consensus of $1.72 per share, with revenues expected to decline sequentially in the second quarter and back half of the year, Boss said in the note.
Check out other analyst stock ratings.
He noted the following takeaways from recent channel checks:
Greater China Headwinds: Partners Pou Sheng and Topsports initiated early inventory clearance in July, ahead of the termination of online sales distribution on Jan. 1, 2027. This cutoff represents an annualized revenue headwind of more than $1 billion. North America & EMEA (Europe, the Middle East, and Africa) Promotions: Elevated inventory in legacy lifestyle silhouettes and apparel is fueling aggressive discounting through the Holiday quarter. Weak consumer sentiment and delayed Back-to-School demand hurt retail partners. The analyst further stated that there are two key themes to monitor:
Rising Competition: Market share is fragmenting as "ankle biter" brands have grown to around 17% market share combined, eroding Nike’s market lead. Consumers increasingly favor specialized performance brands over single mega-brands. "To us, the central question is no longer whether niche brands can grow, but whether consumer behavior has structurally shifted toward lower brand loyalty and higher multi-brand trial, making share recapture a harder, more durable challenge," Boss wrote.
Market Maturation: Global sportswear growth is slowing from +6.2% pre-pandemic to an expected +4.5% in fiscal 25-28. Wallet penetration has reached around 24%, tightening further category growth. The analyst expects Nike’s revenue to contract 5.9% year-on-year in the second quarter versus Street expectations of a 4.4% decline, and by 4.6% year-on-year in the second half of fiscal 2027, nearly 500 basis points below consensus of flat growth.
NKE Price Action: Shares of Nike declined by 0.88% to $39.25 at the time of publication on Monday.
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Akinola Raymond, 32, of Manhattan, grinning at the podium on Saturday. Raymond said his rent was $3,800 a month. Truman Dickerson / Business Insider Luckily for the winners of Nike's street race — and perhaps Nike as well — both pay less than $4,000 for their share of rent in New York City.
The sportswear giant was offering that much, which it described as a month's rent, to two winners of a multi-heat street race held in New York City on Saturday. That's less than the median monthly rental cost for a Manhattan apartment.
One winner, Destiny Scott, told Business Insider in a post-race interview that she lives with her mother in a "decent-sized" apartment in East Harlem. She said her share of the rent is $1,000 a month.
"It can help out as rent gets more expensive," the 26-year-old said of the prize money.
The other winner, Akinola Raymond, said he pays $3,800 for a two-bedroom apartment in the East Village, meaning his winnings will just barely cover his next check to the landlord.
Raymond said he lives with his fiancé. "We have a wedding in two weeks," he said, "so having that prize money helped us a lot."
Saturday's race, held on Orchard Street in Manhattan's Lower East Side, drew dozens of runners willing to sweat it out in the late summer sun for a chance at winning some rent money.
The race resembled a block party punctuated by bursts of activity as runners bounded down the pavement in different heats of 100-meter dashes and 400-meter relays. Hundreds of spectators lined the sidewalks and cheered wildly during the races.
Nike billed the race as a chance to determine who was the fastest in New York, with the distinctly New York incentive of rent as a prize.
Mayor Zohran Mamdani has made lowering the city's housing costs a centerpiece of his administration. His signature rent freeze for roughly 1 million rent-stabilized apartments takes effect this fall, while City Hall is pursuing a broader plan to build and preserve 200,000 affordable homes over the next decade.
The race came as Nike tries to recapture some of the cultural cachet it has lost in recent years. CEO Elliott Hill, a Nike veteran who returned to lead the company in 2024, has been working to refocus the brand on sports, rebuild relationships with retailers, and revive product innovation after years of losing ground to competitors like Hoka and On.
For some spectators, though, $4,000 didn't seem like much given the cost of housing in New York.
Favio Quizhpi, a 40-year-old police officer who lives in Queens, said the prize was a good incentive but that Nike was "lowballing it."
"$4,000 would be nice, but depending on where you live in the city, that might not be enough," he said.
Quizhpi said Nike should have "offered way higher."
"They're Nike, they're a billion-dollar corporation," he said. "They can afford that."
Astor Singh, a 25-year-old affiliate marketer who lives in Brooklyn, finished third in his preliminary group but didn't make the podium. He said the prospect of winning rent money appealed to young New Yorkers like him.
"As someone in my mid-20s who's pretty early in the professional world still, it honestly catered directly to my life," Singh said.
Singh grew up in Queens and Long Island before moving back to New York about a year ago. He said rising housing costs aren't an abstraction for him.
"I have family out here who are getting slowly pushed out," he said, adding that he'd watched gentrification reshape neighborhoods he knew growing up.
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Truman Dickerson You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Truman Dickerson is the Weekend News Fellow at Business Insider, based in New York City. He covers trending tech and business news. He previously reported for The Boston Globe's Express Desk. He graduated from Boston University, where he served as editor in chief of The Daily Free Press, BU's student-run newspaper.Contact him at [email protected]
For Immediate ReleaseChicago, IL – August 25, 2026 – Zacks Equity Research shares Palantir Technologies (PLTR - Free Report) as the Bull of the Day and GoPro (GPRO - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on NIKE, Inc.’s (NKE - Free Report) , lululemon athletica inc. (LULU - Free Report) and adidas AG’s (ADDYY - Free Report) .
Here is a synopsis of all five stocks:
Bull of the Day:Palantir Technologies has suddenly emerged as a leader in the artificial intelligence boom, alongside extraordinary growth across both its commercial and government businesses.
More recently, the company has begun to carve out a more distinct role within the AI ecosystem. While much of the industry remains focused on building increasingly powerful foundation models, Palantir is positioning itself as the layer that allows corporations and governments to actually deploy those models against their own proprietary data, and do so with an eye toward privacy and protecting intellectual property.
That distinction appears to be gaining traction. Palantir’s latest earnings report showed another major acceleration in growth, while analysts have continued to raise earnings estimates across every major period.
At the same time, PLTR shares recently broke out from a year-long technical consolidation and are now pressing against another important resistance level near $180, with strong momentum at its back.
With fundamentals, earnings revisions and price momentum all moving in the same direction, Palantir earns today’s Bull of the Day designation.
Palantir Earnings Estimates Continue to RisePalantir’s latest quarter reinforced just how quickly the business is expanding. Revenue surged 93% year over year, while earnings climbed 225%.
More important for the Zacks Rank, analysts responded by raising their forecasts.
Over the last 60 days, there have been 11 upward revisions to the current year earnings estimate and zero downward revisions. Earnings estimates have risen 7-8% across timeframes over the last 60 days, giving Palantir a Zacks Rank #1 (Strong Buy).
Growth expectations remain exceptional as well. Earnings are projected to increase more than 100% this year, followed by another roughly 41% next year. Longer term, analysts expect EPS to compound at approximately 55% annually over the next three to five years.
The obvious objection is valuation. PLTR currently trades at roughly 113x forward earnings, giving it a PEG ratio just above 2. That is an extremely rich multiple and leaves little room for execution problems.
However, Palantir has consistently grown into what initially appeared to be extreme valuations. If earnings estimates continue moving higher at anything close to the recent pace, the denominator in that valuation equation can change quickly.
Palantir Finds Its Place in the AI BoomThe increasingly interesting part of the Palantir story is its positioning within the broader AI ecosystem.
CEO Alex Karp has emphasized the importance of allowing companies and governments to use artificial intelligence without surrendering control of sensitive data and intellectual property. Rather than competing directly with the largest AI labs to build foundation models, Palantir is increasingly positioning itself as the infrastructure through which organizations can safely deploy those models against proprietary data.
That could prove to be a valuable position as AI moves from experimentation toward widespread enterprise adoption.
There is already evidence that customers are expanding their use of Palantir’s platform. Net dollar retention recently reached 157%, indicating that existing customers are spending substantially more with the company.
That is one of the key metrics I would continue watching. If Palantir can maintain elevated expansion rates as AI adoption broadens, it would strengthen the case that the company is becoming a critical layer of enterprise AI rather than simply another beneficiary of the current investment cycle.
PLTR Stock Sets Up for Another BreakoutThe technical picture is reinforcing the fundamental story.
Earlier this month, PLTR broke decisively above the upper boundary of a large descending consolidation that had contained the stock for much of the past year. Shares quickly rallied from the mid-$140s into the $170s following the breakout.
PLTR stock has now spent the last couple weeks consolidating near its highs. Shares are currently trading around $178, with a clearly defined resistance zone near $180 and support around $170-$171.
That creates a straightforward continuation setup. A decisive move through $180 would clear the recent highs and could signal the beginning of another leg higher. Conversely, a break back below the low-$170s would suggest that the stock needs additional time to digest its recent advance.
Should Investors Buy Shares in PLTR?Palantir is not a cheap stock, and investors buying at more than 100x forward earnings need to recognize the expectations embedded in the valuation.
But expensive stocks can remain expensive when their earnings outlook continues improving.
Palantir currently combines several characteristics I look for in leading growth stocks: rapid revenue growth, accelerating earnings, broad-based upward estimate revisions and strong relative price momentum. The company is also establishing a potentially important role as enterprises and governments move from experimenting with AI toward integrating it into their operations.
Bear of the Day:GoPro was once one of the most recognizable growth brands in consumer electronics, but the business has been in structural decline for years. Despite repeated attempts to diversify beyond its core action-camera franchise, revenue continues to contract, camera volumes are falling and profitability remains elusive.
The latest results offered little evidence that the trend is reversing. Second quarter revenue fell 31% year over year to $105 million, while camera sell-through (Sell-through measures the percentage of inventory a retailer sells compared to the total stock shipped to them by the manufacturer) declined 38% to approximately 291,000 units. GoPro posted a $51 million GAAP net loss, compared with a $16 million loss a year earlier, while adjusted EBITDA deteriorated to negative $29 million.
Those numbers follow a difficult 2025, when full-year revenue declined 19% and camera sell-through dropped 20%. Subscription revenue has provided some stability, but it has not been nearly large enough to offset deterioration in the core hardware business.
More concerning is how GoPro is financing itself while attempting another turnaround.
Earlier this year, the company entered into an agreement with Yorkville for as much as $50 million of convertible debt, explicitly creating the potential for dilution as those securities are converted into common stock.
Then in July, founder and CEO Nicholas Woodman provided another $20 million through senior secured notes accompanied by warrants to purchase roughly 25.7 million shares of Class B stock. GoPro also amended its revolving credit facility, including increased borrowing costs and lender waivers.
Woodman's willingness to provide capital certainly demonstrates confidence in the company he founded. But from an investor's perspective, the broader financing picture is difficult to ignore. When a shrinking business is funding continued losses with secured debt, convertible securities and warrants, existing shareholders face both balance-sheet risk and potential dilution.
GoPro's board has also initiated a review of strategic alternatives, another indication that the company recognizes the need for a more significant change in direction.
GoPro Earnings Estimates CollapseThe deteriorating fundamental picture is showing up clearly in analyst expectations. GoPro currently carries a Zacks Rank #5 (Strong Sell), reflecting a dramatic downward shift in earnings estimates.
Over the last 60 days, the analyst covering GPRO has meaningfully lowered forecasts. The current quarter estimate has fallen from a profit of $0.01 per share to a loss of $0.14. Next quarter estimates have moved from positive $0.05 to a $0.02 loss. The full year estimate has collapsed from positive $0.05 to a loss of $0.72 per share and next year estimates have moved from positive $0.05 to a $0.01 loss.
The consensus outlook has moved from modest profitability to substantial losses in a very short period.
The revisions also follow another disappointing earnings report. In Q2, GoPro generated $105 million in revenue, down from $153 million a year earlier, while adjusted EBITDA swung from a $6 million loss to a $29 million loss.
The company is finding some success in subscriptions, where revenue increased 11% and subscriber attach rates reached a record 69%. But that remains a relatively small bright spot within a much larger business experiencing severe volume declines.
For the stock to recover sustainably, GoPro needs more than cost cutting or incremental subscription growth. It ultimately needs to demonstrate that it can stabilize the top line and build a profitable business around its brand. So far, the numbers are moving in the opposite direction.
Should Investors Avoid GPRO Stock?At less than $1 per share, GoPro may look tempting as a turnaround or acquisition speculation. The company still owns a globally recognized brand, continues to develop new products and is actively reviewing strategic alternatives.
However, those potential catalysts need to be weighed against a very difficult financial reality.
Revenue and unit sales continue to decline, losses are widening and earnings expectations are moving sharply lower. At the same time, the company has increasingly relied on secured debt, convertible financing and warrants to maintain liquidity, creating additional risk for existing shareholders.
A strategic transaction could change the story, and GoPro's brand may ultimately have value to another company. But betting on an acquisition is very different from investing in a healthy underlying business.
Until there is clear evidence that sales have stabilized and the company can generate sustainable positive cash flow without continued reliance on potentially dilutive financing, GoPro remains a difficult stock to own.
Additional content:NIKE Running Gains Momentum: Can It Offset Lifestyle Weakness?NIKE, Inc.’s Running business has emerged as a key spot as its product-led turnaround gains momentum. The company is strengthening its Running portfolio by refreshing key franchises such as Pegasus, Vomero and Structure, with products designed to address specific runner needs, including cushioning, stability and energy return. The company is also broadening its lineup across various price points while accelerating the introduction of performance-focused products.
NIKE’s greater emphasis on performance-led innovation has accelerated Running growth, signaling strong consumer acceptance of its new product offerings. NKE has posted five consecutive quarters of double-digit Running growth, adding approximately $1 billion to the business in fiscal 2026. It has also captured around five percentage points of market share in statement Running footwear across North America and Western Europe, highlighting the growing impact of its renewed focus on performance-driven innovation and its ability to win back consumers.
The momentum is not limited to North America and Western Europe. Running also grew mid-single digits in Greater China in the fourth quarter, despite the broader market remaining under significant pressure. In China, NIKE said the Pegasus 42 launch performed well across roughly 2,000 elevated doors, while Running and Global Football were among the stronger areas of the business. In EMEA and APLA, Running also delivered double-digit growth, demonstrating that the category is gaining traction across multiple regions. The improvement is being driven by a sharper product strategy.
In short, NIKE’s Running business has emerged as a key spot in its turnaround, demonstrating that its renewed emphasis on sport, innovation and athlete-focused products is beginning to gain traction. The category’s strong performance provides early evidence that the company’s Sport Offense strategy is working, particularly when it combines consumer insights, differentiated product innovation and a sharper focus on performance needs.
However, the company’s Lifestyle business remains under pressure, particularly across established franchises such as Air Force 1, Dunk and Air Jordan. Sportswear and Jordan Streetwear continue to face challenges from weak sell-through and cautious consumer spending. While Running alone cannot fully offset the weakness in Lifestyle, its strong performance demonstrates that NIKE can reignite consumer demand through product innovation and performance-led offerings rather than relying primarily on established lifestyle franchises.
NKE’s Peerslululemon athletica inc. is putting greater emphasis on product newness, technical performance and innovation. LULU has been specifically increasing the frequency and breadth of new styles while maintaining its premium positioning. lululemon is leveraging its innovation platform and expanding beyond traditional yoga and core categories into areas such as running, training, tennis, golf, hiking and footwear.
adidas AG’s innovation strategy is centered on athlete-led product development, advanced technologies, local consumer insights and a combination of performance innovation with lifestyle appeal. adidas is pursuing a broad-based growth strategy centered on product innovation, performance and lifestyle relevance. ADDYY is strengthening key performance categories such as Running, Football and Training through new technologies and athlete-focused products, while simultaneously refreshing its Lifestyle portfolio.
NKE’S Price Performance, Valuation and EstimatesShares of NIKE have lost 34.5% in the past six months compared with the industry’s decline of 29.9%.
From a valuation standpoint, NKE trades at a forward price-to-earnings ratio of 21.69X compared with the industry’s average of 19X.
The Zacks Consensus Estimate for NKE’s fiscal 2027 and fiscal 2028 earnings implies year-over-year growth of 10.1% and 34.5%, respectively. The company’s EPS estimate for fiscal 2027 has been stable while that of fiscal 2028 has moved south in the past 30 days.
NIKE stock currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Key Takeaways NIKE's brand leadership, athlete ties and global reach support its footwear ecosystem.Wolverine's Merrell and Saucony brands drove Q2 revenue growth of 10% and 9% y/y, respectively.Wolverine reported $506M in Q2 revenues, up 7%, while adjusted EPS grew 14%. The global footwear industry continues to witness an intense battle between scale-driven leaders and specialized brands, with NIKE, Inc. (NKE - Free Report) and Wolverine World Wide, Inc. (WWW - Free Report) representing two distinct business models.
NIKE has established itself as a dominant force in athletic footwear and apparel, supported by unmatched brand recognition, innovation capabilities, athlete partnerships and a vast global distribution network. Wolverine, meanwhile, operates through a portfolio of heritage brands focused on work, outdoor, lifestyle and performance footwear categories.
The competition extends beyond product sales, as both companies focus on strengthening consumer connections, expanding digital engagement and adapting to changing preferences. While NIKE benefits from global reach and a powerful direct-to-consumer ecosystem, Wolverine relies on targeted brand positioning and specialized offerings.
As the footwear market evolves, investors are assessing whether NIKE’s global leadership or Wolverine’s focused strategy offers the stronger path to long-term growth.
The Case for NKENIKE remains one of the most powerful names in global footwear, supported by unmatched brand recognition, athlete partnerships and a vast consumer ecosystem spanning performance footwear, sportswear and lifestyle categories. However, the company’s investment case is currently clouded by slowing demand, portfolio challenges and a difficult recovery path.
NIKE’s performance business continues to show resilience, with Running delivering five consecutive quarters of double-digit growth and gaining five points of running market share in statement footwear across Western Europe and North America. However, weakness in NIKE Sportswear and Jordan Streetwear, which together account for approximately half of revenues, remains a major concern as the company works to reposition these critical franchises.
NIKE’s strategy focuses on rebuilding consumer connections through its Sport Offense model, product innovation and improved marketplace execution. While the company continues to leverage digital engagement, athlete communities and global events such as the FIFA World Cup, near-term results remain pressured.
NIKE’s efforts to create a premium digital ecosystem have involved reducing promotions, but this has weighed on digital performance, with NIKE Direct declining 9% and NIKE Digital falling 12% in the fourth quarter of fiscal 2026. Although the brand generated 1.5 billion views through World Cup storytelling, converting engagement into sustainable sales growth remains a key challenge.
Financial performance highlights the ongoing headwinds. NIKE reported fourth-quarter fiscal 2026 revenues of $10.97 billion, while earnings fell year over year. Inventory management, weaker consumer spending, pressure in Greater China and slower sportswear demand continue to weigh on momentum. While NIKE’s brand leadership remains a long-term advantage, investors must consider the risks of a prolonged turnaround and uncertain timing of renewed growth.
The Case for WWWWolverine’s investment case is built around a portfolio of specialized footwear brands that are gaining traction in attractive outdoor, running, work and lifestyle categories. Unlike larger global footwear players, Wolverine competes through focused brand positioning and category expertise, with Merrell, Saucony, Wolverine and Sweaty Betty serving distinct consumer segments. Merrell and Saucony, which together represent approximately two-thirds of the company’s business, have emerged as key growth drivers, delivering revenue growth of 10% and 9%, respectively, in the second quarter of 2026.
The company is strengthening its market position through improved products, stronger brand storytelling and disciplined marketplace execution, helping its brands gain consumer interest and market share across key categories.
Wolverine’s strategy focuses on transforming its brands from niche footwear names into stronger lifestyle and performance platforms. Merrell continues to build its leadership in outdoor footwear, gaining triple-digit basis points of market share in the U.S. hiking category and placing three styles among the top 10.
Saucony is expanding beyond traditional running through performance, lifestyle and global community engagement, gaining share at U.S. run specialty and ranking among the top five most worn brands at major marathons. The company is also investing in digital initiatives, community activations and key-city strategies to improve brand awareness, consumer engagement and direct-to-consumer performance.
The company reported second-quarter revenues of $506 million, up 7% year over year, while adjusted earnings per share increased 14% to 40 cents. Profitability improved through revenue growth, cost discipline and stronger brand execution, leading management to raise its full-year outlook. While Wolverine lacks the global scale and market share of larger footwear giants, its focused portfolio, improving brand momentum and opportunities in outdoor, running and work categories provide a foundation for long-term growth.
How Does the Zacks Consensus Estimate Compare for NKE & WWW?The Zacks Consensus Estimate for NIKE’s fiscal 2027 sales implies a year-over-year decline of 0.3%, while EPS indicates growth of 10.1%. The EPS estimate has been unchanged in the past 30 days.
NKE’s Estimate Revision Trend
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Wolverine’s 2026 sales and EPS suggests year-over-year growth of 6.5% and 20.9%, respectively. The EPS estimate has moved up 3.8% in the past 30 days.
WWW’s Estimate Revision Trend
Image Source: Zacks Investment Research
Wolverine’s improving earnings outlook reflects strengthening brand momentum, successful portfolio execution and growing investor confidence in its turnaround strategy. In contrast, NIKE’s muted sales expectations highlight ongoing challenges in demand recovery, although earnings growth potential suggests progress from efficiency initiatives. Overall, estimate trends indicate a more favorable near-term earnings trajectory for Wolverine.
Price Performance & Valuation of NKE & WWWIn the past three months, NIKE shares have declined 9.3%, whereas Wolverine has rallied 21.6%.
Image Source: Zacks Investment Research
NIKE is trading at a forward price-to-sales (P/S) multiple of 1.3X, below its median of 2.72X in the last five years. Wolverine’s forward P/S multiple sits at 0.83X, above its median of 0.63X in the last five years.
Image Source: Zacks Investment Research
Wolverine’s stronger recent stock performance reflects improving investor sentiment around its brand recovery, portfolio transformation and growth prospects. NIKE’s weaker share movement indicates ongoing concerns about demand trends and turnaround execution. However, NIKE’s discounted valuation compared with its historical levels suggests that the market may already reflect several near-term challenges.
NKE vs. WWW: Which Is the Better Bet Now?The battle between NIKE and Wolverine represents a clash between global scale and focused brand execution. While NIKE remains a dominant footwear player with unmatched brand equity, innovation strength and consumer reach, ongoing challenges across key franchises and slower demand recovery have weighed on its near-term outlook. Wolverine, in contrast, is gaining momentum through improving brand health, disciplined execution and growth across attractive categories such as outdoor, running and work footwear.
Wolverine emerges as the stronger contender based on its recent stock performance and improving earnings outlook. The company’s stronger three-month return reflects rising investor confidence in its transformation strategy, while upward revisions to earnings estimates signal optimism around future profitability. Although NIKE’s long-term competitive advantages remain significant, Wolverine’s accelerating brand momentum, portfolio improvements and favorable estimate trends provide it with an edge in the current footwear market battle.
Wolverine currently carries a Zacks Rank #2 (Buy), whereas NIKE has a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Nike Inc (NYSE:NKE) have been hit hard in 2026, thanks to quarterly earnings and, in recent days, due to the quarterly results of retailer Dick’s Sporting Goods, a key customer.
The decline has hit the net worth of founder Phil Knight so hard that he is likely to be out of the prestigious top 100 richest people in the world club.
• Nike stock is trading at depressed levels. Where is NKE stock headed?
Phil Knight’s Wealth DropsNike founder Knight was worth $66 billion back in November 2021. Five years later, Knight and his family are worth $25.3 billion.
They have lost $5.09 billion in net worth in 2026, according to estimates from Bloomberg. This ranks the Nike founder 99th on the Bloomberg Billionaires Index, only $0.1 billion away from ranking beyond the top 100 richest people in the world.
The current net worth for Knight and family is the lowest estimated by Bloomberg since March 2020, when they were worth $24.6 billion.
Knight’s $5.09 billion wealth decline in 2026 is the 20th biggest of anyone on the Bloomberg Billionaires Index year-to-date. Among the 100 richest people, the decline ranks 13th worst.
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What’s Next for KnightKnight and his family own an estimated one-fifth of Nike, which ties their net worth significantly to the apparel and footwear giant.
While there have been some signs of improvement amidst a turnaround effort for the company, some analysts see changes taking longer than expected.
Investors continue to bail on the turnaround and put their money elsewhere. Nike stock is down 37.6% year-to-date in 2026 and down over 50% in the last 52 weeks. Nike shares currently trade at their lowest levels since 2017.
This could see Knight’s wealth continue to fall this year and into the future.
The 88-year-old is also notorious for philanthropic efforts and helping fund the name, image and likeness (NIL) efforts for University of Oregon athletes. This could hit Knight’s net worth in the future, as well.
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Nike (NKE - Free Report) ended the recent trading session at $39.48, demonstrating a -3.12% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.32%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 0.66%.
The stock of athletic apparel maker has fallen by 3.3% in the past month, lagging the Consumer Discretionary sector's gain of 7.58% and the S&P 500's gain of 3.34%.
Investors will be eagerly watching for the performance of Nike in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.44, marking a 10.2% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $11.46 billion, indicating a 2.18% downward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.74 per share and a revenue of $46.26 billion, representing changes of +10.13% and -0.3%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Nike. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% lower. Nike is currently a Zacks Rank #3 (Hold).
In the context of valuation, Nike is at present trading with a Forward P/E ratio of 23.43. This indicates a premium in contrast to its industry's Forward P/E of 12.91.
It's also important to note that NKE currently trades at a PEG ratio of 1.81. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Shoes and Retail Apparel industry was having an average PEG ratio of 1.61.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 35, placing it within the top 15% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
It has been a frustrating 2026 for NIKE (NKE - Free Report) and Intuitive Surgical (ISRG - Free Report) , with shares underperforming. While the reasons for their weakness differ, both stocks have faced elevated investor expectations, valuation concerns, and business-specific headwinds that have weighed on their shares.
NIKE's Turnaround Needs More Time
NKE shares were down roughly 35% year-to-date, with investors still waiting for its turnaround to gain real traction.
Q4 results offered some encouragement, as adjusted EPS of $0.20 topped the $0.11 Zacks Consensus Estimate. But revenue fell 1% year over year to $11 billion and dropped 4% on a currency-neutral basis. More importantly, NIKE Direct sales fell 7%, including a 12% drop in Digital, while Greater China revenue sank 17% on a currency-neutral basis.
Running and other performance categories are improving, but weakness in Sportswear and Jordan Streetwear, elevated promotions, and stiff competition continue to muddy the recovery.
EPS revisions remain negative, as shown below.
Image Source: Zacks Investment Research
ISRG: Great Quarter, Steep Expectations
ISRG’s overall business is still growing rapidly, but a premium valuation has left little room for disappointment.
Second-quarter adjusted EPS jumped 27.9% to $2.80, comfortably topping estimates, while revenue climbed 18.5% to $2.9 billion. Still, shares sank following the release as U.S. da Vinci procedure growth slowed to 12% from 14% in Q1.
Concerns surrounding elective-procedure demand, weaker bariatric volumes amid GLP-1 adoption, and tariff-related costs have added pressure. With shares down more than 30% in 2026, much of the decline has been valuation compression rather than collapsing fundamentals.
That aside, overall EPS revisions have begun to shift upward, as shown below. The favorable shift in the revisions picture bodes well for near-term momentum, with shares already bouncing modestly off 2026 lows.
Image Source: Zacks Investment Research
Bottom Line
Nike (NKE - Free Report) and Intuitive Surgical (ISRG - Free Report) have struggled in 2026, with Nike struggling to gain business momentum. ISRG has largely continued to post favorable results, but steep valuation multiples left the stock vulnerable amid a slight growth cooldown. Still, the EPS picture for ISRG remains much more constructive, reflective of a stronger pick overall from a near-term perspective.
Nike Inc. (NYSE:NKE) stock declined on Wednesday, primarily due to weaker-than-expected corporate earnings from key retail partner Dick’s Sporting Goods Inc. (NYSE:DKS), which raised concerns over a prolonged turnaround for the footwear giant.
The drop coincided with a rating cut from Wall Street.
The Nasdaq is down 0.09% while the S&P 500 has shed 0.05%, and Nike is lagging a sector that’s already weaker on the day.
• Nike stock is testing key support levels. Why is NKE stock at lows?
Nike is also trading below its recent 52-week low zone (the 52-week low was $38.86, versus the current $38.52), which can keep pressure on as stops trigger and dip-buyers wait for a clearer base.
On Wednesday, Truist Securities downgraded Nike stock to Hold from Buy and lowered its price forecast to $42 from $47.
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Retail Partner Earnings Signal PressureThe pressure follows Tuesday’s earnings report from Dick’s Sporting Goods, which had its shares fall roughly 25% after cutting full-year adjusted earnings guidance to $11 to $12 per share. The retailer posted a $31.9 million second-quarter segment loss at Foot Locker, less than a year after completing its $2.5 billion acquisition.
Foot Locker Challenges Weigh BroadlyFoot Locker’s second-quarter comparable sales fell 3.6%. Executive Chairman Ed Stack cited an increasingly promotional retail environment alongside heavy reliance on sneaker drops, retro releases and older footwear styles. Stack stated, “Not only were there fewer launches in the second quarter, but those launches performed below both industry and our expectations.”
Technical AnalysisFrom a trend perspective, Nike remains in a clear longer-term downtrend: it’s trading 6.1% below the 20-day SMA, 8.7% below the 50-day SMA, 10.9% below the 100-day SMA, and 26.4% below the 200-day SMA. The 20-day SMA is also below the 50-day SMA, and the stock is still living with the "Death Cross" that formed in November 2025 (50-day SMA below the 200-day SMA).
Trending
NKE Stock Price Activity: Nike shares were down 2.44% at $38.52 at the time of publication on Wednesday, according to Benzinga Pro data.
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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Dick's Sporting Goods (DKS +2.52%) shares collapsed following the company's fiscal second-quarter earnings report, as it warned that the athletic footwear and apparel space has become more promotional. In addition, it said there were fewer new footwear launches in Q2, and that those launches underperformed its own and industry expectations.
The commentary was similar to that of JD Sports Fashion, which operates stores under the Finish Line, Hibbett, and other banners. JD Sports also said it was facing a highly promotional environment and experiencing economic and footwear-product-cycle headwinds. Both Dick's and JD Sports are major Nike (NKE +3.02%) retailers, but industry headwinds could extend beyond Nike and affect other brands, including Lululemon Athletica (LULU +5.05%).
Let's look at why I'd be reluctant to buy these two apparel stocks even while they are down.
Nike is trading at its lowest level in more than a decade, but that is not enough reason to buy the stock. The company's former CEO, John Donahoe, who strained wholesale relationships and eschewed innovation in favor of relying on retro brands, left the company in a bad spot. Meanwhile, its "Win Now" initiative, begun in late 2024 under current CEO Elliott Hill, has yet to help meaningfully turn the company around.
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While it's seen some positives, especially with running, overall, its struggles have continued. This is especially true in China, which was its strongest market before the pandemic.
However, the company has been losing share to local brands, and its sales and margins have collapsed. With the company trying to reestablish itself as a premium brand, the more promotional environment in North America will only add to its woes. It had already been closing stores in North America, which will likely pressure sales, so this just piles on top of that.
While Nike is an iconic brand, the company appears to have lost brand loyalty, and there is no guarantee that loyalty will return. Just look at Under Armour, which was once a hot brand that has now seen 13 straight quarters of revenue declines with no turnaround in sight. Meanwhile, trading at a forward P/E of 23, Nike's stock is still not cheap.
Image source: The Motley Fool.
Lululemon While the warning from Dick's and JD Sports doesn't have the same direct impact on Lululemon as it does on Nike, there certainly appears to be a general shift away from sporting apparel and athleisure. That's bad news for a company like Lululemon that is already trying to turn around its business.
The company has already been struggling with product missteps and increased competition from newer high-end brands like Alo and Vuori. Meanwhile, it's been without a CEO for an extended period, and the hire of veteran Nike exec Heidi O'Neill, who will take over in September, disappointed investors, including activist investor Elliott Investment Management, which wanted turnaround specialist and longtime retail executive Jane Nielsen to lead the company.
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China has been Lululemon's saving grace, with the company projecting 20% revenue growth this year. However, the company committed a major faux pas at a big yoga event held on the Great Wall when it accidentally gave a Chinese actor a Japanese taiko drum to play instead of a Chinese dagu drum. This huge PR misstep could certainly impact sales in what has been the company's best-performing market.
In July, Truist downgraded the stock on concerns that the brand was losing momentum, citing Google and TikTok search trends. With the overall sporting apparel and athleisure market showing troubling signs, the picture for Lululemon is likely only to get worse from here. Meanwhile, like Nike, the company is struggling to maintain its brand loyalty.
While Lululemon looks cheap at a forward P/E under 11, a low multiple on falling earnings isn't always a bargain, and the stock appears to be a value trap.
NIKE (NKE +3.02%), a global athletic footwear and apparel leader, closed at $38.59, down 2.25%. Analyst downgrades and negative retail footwear headlines pressured the stock, while investors are watching the next earnings cycle and tariff-related margin trends.
Trading volume reached 33.3 million shares, coming in about 35% above its three-month average of 24.6 million shares.
How the markets moved todayThe S&P 500 (^GSPC -0.25%) closed at 7,676, down 0.02%, and the Nasdaq Composite (^IXIC -0.52%) closed at 26,130, down 0.08%. Among global athletic footwear, apparel, equipment, and accessories manufacturing and retail peers, Adidas (ADDYY +0.32%) closed at $87.84, down 1.47%, while Deckers Outdoor (DECK +1.66%) closed at $89.47, up 0.82%, after mixed demand signals from retailers and brand outlooks.
What this means for investorsInvestors were stunned by news from the athletic shoe market yesterday, as Dick's Sporting Goods (DKS +2.52%) cut guidance amid weaker demand. That stock tumbled 30% after its news, and prompted Truist Financial (TFC +0.26%) analyst Joseph Civello to cut his firm's rating on Nike from "buy" to "hold."
Nike shares plunged to their lowest level in more than 10 years, and nearly 80% below the high reached in late 2021. The analyst noted that Dick's report created a new wave of uncertainty surrounding the sportswear group.
Nike investors have been counting on progress in the turnaround, but now the retail demand picture could complicate that plan. Whether investors want to hold the stock may depend on their time horizon and income needs. The stock now has a dividend yield of about 4.2%, providing income while waiting for better news.
Howard Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Deckers Outdoor, Nike, and Truist Financial. The Motley Fool has a disclosure policy.
Two battered consumer giants both hired new leadership to stop the bleeding, but the turnaround playbooks could not look more different right now. Before adding either to a retirement portfolio, the evidence separating genuine recovery from prolonged hope deserves a…
The question for a retirement-focused investor sizing up Estee Lauder (NYSE:EL | EL Price Prediction) against Nike (NYSE:NKE) is simple: which of these battered consumer icons has produced actual evidence that its turnaround is working, and which is still asking you to keep believing? Both stocks destroyed enormous shareholder value over the past five years, and both brought in new leadership to fix it. As of the close on August 27, 2026, one has produced hard proof. The other is telling investors the fix will take longer.
Shared Starting Point: A Five-Year Collapse Estee Lauder is down 68.8% over the trailing five years to $106.21. Nike is down 77.1% over the same window to $38.44. The comparison is apt because the scale of decline is comparable. Over 10 years, Estee Lauder has produced a 16.8% return, while Nike shareholders are sitting on a 34.9% loss.
Turnaround Evidence: Raised Guide vs. Extended Timeline On August 19, 2026, Estee Lauder reported its fourth consecutive earnings beat, with fiscal Q4 adjusted EPS of $0.39 versus a $0.32 estimate on revenue of $3.63 billion. Full-year adjusted EPS reached $2.51, adjusted operating margin expanded 320 basis points to 11.2%, and gross margin reached 75.5%. The Profit Recovery and Growth Plan concluded with $1.20 billion in gross benefits. Management raised the fiscal 2027 outlook, guiding adjusted EPS of $3.10 to $3.35 and lifting the margin range to 12.7% to 13.5%. CEO Stephane de la Faverie stated: “We reignited growth, with organic sales rising 3%, driven by the breadth of growth across brands, and expanded operating margins significantly.” Estee Lauder rose 10.46% in the week ended August 27.
Nike’s story runs the other way. On June 30, 2026, Nike reported Q4 fiscal 2026 EPS of $0.72, but $0.52 of that came from a one-time $986 million IEEPA tariff-recovery benefit. Revenue slipped 1.1% year over year, NIKE Direct fell 7%, Greater China dropped 12% (17% currency-neutral), and Converse collapsed 32%. CEO Elliott Hill acknowledged: “Overall, the results aren’t there yet. We know we’re not living up to our full potential, particularly in Nike Sportswear and Jordan Streetwear.” Guidance calls for fiscal 2027 revenue to decline by low to mid-single digits. Reuters flagged a prolonged turnaround on July 1, 2026. One company raised its forward outlook; the other extended its timeline.
What Investors Are Actually Buying Today Estee Lauder shares have moved sharply higher: up 27.7% over the past month and up 14.7% over one year, though only 1.4% year to date. A buyer today is paying after the proof arrived, at a forward P/E near 32, with a modest dividend yield of roughly 1.3% on the $1.40 annual payout.
Nike offers the opposite optics: a great global brand, a price down 39.7% year to date and 50.8% over one year, a 4.3% dividend yield backed by a 24-year streak of increases, and management that has openly said the fix will take longer. That is the textbook value-trap setup: a strong brand and a seemingly cheap price coexisting with deteriorating fundamentals.
Verdict: Proof Beats Promise For a retirement-focused investor evaluating turnaround evidence, Estee Lauder is the winner. A raised forward outlook is proof. A yield backed by declining revenue is merely a hope. Investors are buying Estee Lauder after a sharp move, and the stock remains well below its price of five years ago. Nike could deliver a powerful recovery from a depressed base if Hill’s execution succeeds. Both stocks carry turnaround risk that argues for modest position sizing in a retirement portfolio.
There are two checkpoints to watch. For Estee Lauder, it is whether the raised fiscal 2027 guide of $3.10 to $3.35 adjusted EPS is met, exceeded, or revised. For Nike, it is whether revenue stops declining and whether Greater China stabilizes after its 12% Q1 decline. Those data points will settle any debate.
Contact [email protected] for any questions or corrections.
BEAVERTON, Ore.--(BUSINESS WIRE)--NIKE, Inc. (NYSE: NKE) plans to release its first quarter fiscal 2027 financial results on Thursday, October 1, 2026, at approximately 1:15 p.m. PT, following the close of regular stock market trading hours. Following the news release, NIKE, Inc. management will host a conference call beginning at 2:00 p.m. PT to review results.
The conference call will be broadcast live over the Internet and can be accessed at https://investors.nike.com/. For those unable to listen to the live broadcast, an archived version will be available at the same location through 9:00 p.m. PT, October 29, 2026.
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.
Nike has been quietly shuttering Nike Well Collective stores, its small-format neighborhood shop concept.
At least 24 stores have closed across a dozen states, a Fast Company review has found. The closures appear to be happening alongside a broader restructuring.
In April 2026, the sportswear giant announced it would eliminate 1,400 jobs, primarily technology roles. The brand also said it would consolidate its technology footprint at its headquarters in Oregon and the Nike India Technology Center.
Nike also reportedly closed its boutique-style group fitness studios, Nike Studios, in March 2026. The studios had been part of a three-year experiment in collaboration with FitLab.
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In an earnings call this summer, Elliott Hill, Nike’s CEO, said the company was making changes to its direct-to-consumer strategy, including elevating the user experience.
“We’ve elevated more than 150 stores with sport-led experiences. Over time, we will continue to rezone and elevate our fleet and close the doors that are no longer aligned to our strategy,” Hill said on the call.
How Nike Well Collective got its start Nike Well Collective got its start as a different name and concept. The retailer introduced the Nike Live concept in 2018 with the opening of its first store, Nike by Melrose, in Los Angeles, which has since closed.
Key Takeaways NIKE's Running business has posted five straight quarters of double-digit growth.Refreshed Pegasus, Vomero and Structure franchises are driving performance-focused product momentum.Running gained five points of market share in key regions, while Lifestyle franchises are under pressure. NIKE, Inc.’s (NKE - Free Report) Running business has emerged as a key spot as its product-led turnaround gains momentum. The company is strengthening its Running portfolio by refreshing key franchises such as Pegasus, Vomero and Structure, with products designed to address specific runner needs, including cushioning, stability and energy return. The company is also broadening its lineup across various price points while accelerating the introduction of performance-focused products.
NIKE’s greater emphasis on performance-led innovation has accelerated Running growth, signaling strong consumer acceptance of its new product offerings. NKE has posted five consecutive quarters of double-digit Running growth, adding approximately $1 billion to the business in fiscal 2026. It has also captured around five percentage points of market share in statement Running footwear across North America and Western Europe, highlighting the growing impact of its renewed focus on performance-driven innovation and its ability to win back consumers.
The momentum is not limited to North America and Western Europe. Running also grew mid-single digits in Greater China in the fourth quarter, despite the broader market remaining under significant pressure. In China, NIKE said the Pegasus 42 launch performed well across roughly 2,000 elevated doors, while Running and Global Football were among the stronger areas of the business. In EMEA and APLA, Running also delivered double-digit growth, demonstrating that the category is gaining traction across multiple regions. The improvement is being driven by a sharper product strategy.
In short, NIKE’s Running business has emerged as a key spot in its turnaround, demonstrating that its renewed emphasis on sport, innovation and athlete-focused products is beginning to gain traction. The category’s strong performance provides early evidence that the company’s Sport Offense strategy is working, particularly when it combines consumer insights, differentiated product innovation and a sharper focus on performance needs.
However, the company’s Lifestyle business remains under pressure, particularly across established franchises such as Air Force 1, Dunk and Air Jordan. Sportswear and Jordan Streetwear continue to face challenges from weak sell-through and cautious consumer spending. While Running alone cannot fully offset the weakness in Lifestyle, its strong performance demonstrates that NIKE can reignite consumer demand through product innovation and performance-led offerings rather than relying primarily on established lifestyle franchises.
NKE’s Peerslululemon athletica inc. (LULU - Free Report) is putting greater emphasis on product newness, technical performance and innovation. LULU has been specifically increasing the frequency and breadth of new styles while maintaining its premium positioning. lululemon is leveraging its innovation platform and expanding beyond traditional yoga and core categories into areas such as running, training, tennis, golf, hiking and footwear.
adidas AG’s (ADDYY - Free Report) innovation strategy is centered on athlete-led product development, advanced technologies, local consumer insights and a combination of performance innovation with lifestyle appeal. adidas is pursuing a broad-based growth strategy centered on product innovation, performance and lifestyle relevance. ADDYY is strengthening key performance categories such as Running, Football and Training through new technologies and athlete-focused products, while simultaneously refreshing its Lifestyle portfolio.
NKE’S Price Performance, Valuation and EstimatesShares of NIKE have lost 34.5% in the past six months compared with the industry’s decline of 29.9%.
Image Source: Zacks Investment Research
From a valuation standpoint, NKE trades at a forward price-to-earnings ratio of 21.69X compared with the industry’s average of 19X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NKE’s fiscal 2027 and fiscal 2028 earnings implies year-over-year growth of 10.1% and 34.5%, respectively. The company’s EPS estimate for fiscal 2027 has been stable while that of fiscal 2028 has moved south in the past 30 days.
Nike (NYSE: NKE) investors holding 100 shares will receive $41 when the company pays its next quarterly dividend on October 1, 2026.
The payment was declared on August 6 with no change from the previous quarterly payout of $0.41 per share.
Investors must own the stock before the September 1, 2026 ex-dividend date to qualify. The payout maintains Nike’s annual dividend rate at $1.64 per share, giving the stock a 4.02% yield at its recent price of $40.76.
If the dividend remains unchanged for a full year, investors holding 100 shares would collect approximately $164 annually.
Nike dividend payment schedule. Source: Dividend.com Notably, Nike’s dividend yield is significantly higher than the 1.89% average yield across the consumer discretionary sector.
Meanwhile, the company’s forward payout ratio stands at 75.25%, indicating a substantial portion of earnings is being returned to shareholders through dividends.
It is worth noting that Nike last increased its dividend in late 2025, raising the quarterly payment from $0.40 to $0.41 per share. The increase extended the company’s dividend growth streak to roughly 24 consecutive years, bringing it within one year of qualifying for Dividend Aristocrat status.
If Nike announces another increase later this year matching the previous hike of about 2.5%, the quarterly dividend would rise to approximately $0.42025 per share.
Indeed, the company has historically announced its annual dividend increase in November, making a potential hike later in 2026 a key event for income-focused investors.
Nike’s elevated dividend yield comes as the stock remains under heavy pressure. Shares fell to a 12-year low of $38.86 before recovering to $40.76 as of August 21.
Nike stock price struggles The stock has lost about 48% over the past year, more than 35% year-to-date, and nearly 78% from its November 2021 record high of $177.
NKE YTD stock price chart. Source: Finbold The latest sell-off was largely triggered by disappointing results and weaker guidance from rival On Holding, which weighed on sentiment across the premium athletic footwear sector.
Additional pressure has come from a recent JPMorgan downgrade to ‘Underweight’ with a $40 price target, concerns over weak demand in China, softness in Nike’s direct-to-consumer business, increased competition, tariff-related headwinds, and a slower-than-expected turnaround under CEO Elliott Hill.
Despite these challenges, Nike has maintained its focus on returning capital to investors. The company returned approximately $2.5 billion to shareholders during fiscal 2026, primarily through dividends, while significantly reducing share buybacks as free cash flow remained under pressure.
At the same time, revenue stabilized near $46.4 billion in fiscal 2026, with improvements in North America and wholesale operations helping offset ongoing weakness in China and several other markets.
Featured image via Shutterstock
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Nike's (NKE +1.37%) turnaound its taking longer than the market was expecting.
*Stock prices used were the afternoon prices of Aug. 20, 2026. The video was published on Aug.22, 2026.
Parkev Tatevosian, CFA 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. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
Nike's (NKE +1.37%) forward (12-month) dividend yield is 4% -- well above Coca-Cola's 2.4%. This is notable given Coke's status as a Dividend King, a label reserved for companies that have raised their dividends for 50-plus straight years.
Nike's elevated yield reflects a lower share price despite the company continuing to pay a steady quarterly dividend. Instead of being priced in, the market might be undervaluing the stock ahead of a successful turnaround.
Nike's latest results still showed revenue declines, yet the underlying story is getting more constructive. If management executes, an improvement in margins and recovery in profitability could drive meaningful upside over the next several years.
Image source: The Motley Fool.
Why Nike's dividend looks sustainable High yields often show up when investors expect limited growth -- which is why mature, dominant businesses with less runway, including many Dividend Kings, tend to pay above-average yields. Those stocks are typically bought for income first, not for market-beating appreciation.
Nike's yield is high mainly because the stock is down, not because the company can't afford the payout. The company recently declared a $0.41 dividend, payable Oct. 1 to shareholders of record Sept. 1, putting the annualized dividend at $1.64 per share.
Although the payout ratio is elevated, Nike still generates sufficient cash to support its quarterly dividend, especially given the expected rebound in fiscal 2027. Nike's trailing 12-month free cash flow of $2.2 billion was less than its $2.4 billion in dividend distributions over the same period. But analysts expect free cash flow to rebound to $3 billion in fiscal 2027, consistent with positive trends management is beginning to see in margin stabilization.
If cash generation improves as management focuses on cleaning up inventory, the dividend becomes easier to support -- and the stock has room to move higher. Unlike Coke, Nike can offer both income and real upside.
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Why Nike's turnaround is hitting an inflection point Full-year sales were essentially flat at about $46 billion (down 2% on a currency-neutral basis). Still, Nike's latest earnings report included signals of improving fundamentals.
Demand remains softest in lifestyle categories (sportswear and Jordan streetwear), which still represent roughly half of sales. But performance wear is holding up better -- and that matters because it's the core of Nike's brand.
Nike Running is the standout, producing five straight quarters of double-digit growth. Management also pointed to better retail trends in training and global football. Strength in these categories suggests Nike is winning where it historically wins best -- performance products -- and that healthier growth can return as the company fixes inventory levels and leans harder into its strongest franchises.
Valuation helps the investment case. Nike trades at about 1.3x sales, well below its historical norm of 2.0x or higher. If Nike cleans up inventory, improves sales mix, and expands margins, investors could reward it with a higher multiple.
The turnaround path will likely stay bumpy in a cautious consumer environment. But between the high yield and the discounted price-to-sales ratio, the market doesn't appear to be fully pricing in a successful turnaround -- and that could offer investors meaningful upside potential.
Nike (NKE +1.37%), the world's largest athletic footwear and apparel maker, was once considered a stable blue chip stock. But over the past five years, its stock has plunged more than 75%. It's now trading at its lowest price in 12 years.
Could Nike be a contrarian play at these levels? Let's see why its stock plummeted, if it's historically undervalued, and if it has a shot at a comeback over the next few years.
Image source: Getty Images.
What happened to Nike? More than a decade ago, Nike declared it could grow its revenue from $30.6 billion in fiscal 2015 (which ended in May 2015) to $50 billion in fiscal 2020. But in reality, Nike's revenue only reached $37.4 billion in fiscal 2020. Its sluggish sales in North America and Europe, soft demand for its Converse brand, and the COVID-19 pandemic all caused it to miss that target.
After the pandemic passed, Nike stabilized its business by expanding Nike Direct (its first-party e-commerce marketplace and brick-and-mortar stores) to reduce its dependence on wholesale retailers. From fiscal 2020 to fiscal 2023, its revenue grew at a steady 11% CAGR.
But after that recovery, Nike's top-line growth flatlined in fiscal 2024, and its revenue fell 10% in fiscal 2025. That slowdown was caused by its declining sales in North America and a strong dollar, which offset its steadier growth in China and other overseas markets. Nike Direct's expansion backfired as shoppers returned to wholesale retailers, and aggressive competitors -- including Deckers' Hoka, New Balance, and On Holding -- carved up the performance-running and lifestyle sneaker markets.
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That pressure forced Nike to rely on markdowns to grow its revenue. From fiscal 2023 to fiscal 2025, its gross margin declined from 43.5% to 42.7%, and its EPS fell from $3.23 to $2.16.
In fiscal 2026, Nike's revenue came in flat again. Its North American business finally grew, but its overseas sales -- especially in China -- fizzled out. Its EPS dipped 3% to $2.10. Its gross margin expanded 20 basis points to 42.9% for the year, but that was mainly due to a one-time tariff recovery rather than a significant reduction in markdowns.
Can Nike stabilize its business? Nike's turnaround strategy has been messy. It's trying to rebuild relationships with the wholesale retailers it alienated during Nike Direct's expansion, reduce its excess inventory without cheapening its brand, and develop new performance-oriented brands to widen its moat and reduce its dependence on its aging retro flagship shoes (Air Force 1, Dunk, and Air Jordan Retros). It also needs to find fresh ways to pull consumers back from rapidly growing local challengers like Anta and Li-Ning in China.
CEO Elliot Hill, who took the helm in Oct. 2024, doesn't expect the "Win Now" transformation plan to boost its revenue anytime soon. Instead, Hill is calling fiscal 2027 a "reset year" in which it will sacrifice its top-line growth to clear out its inventory and stabilize its margins.
Will Nike's stock sink even lower? For the first half of fiscal 2027, Nike expects its revenue to decline by the low- to mid-single digits, with a steeper decline in the second quarter. It expects heavy overseas digital promotions, the adjusted timing of its North American wholesale shipments, and tough macro headwinds on discretionary consumer spending to cause that slowdown.
It's also bracing for slower sales in China through fiscal 2027 as it clears out its inventories, reduces sell-in levels, and transitions toward digital storefronts on third-party marketplaces. That decline should be partly offset by its growth in North America. Analysts expect its revenue to decline nearly 2% for the full year.
On the bright side, Nike expects its gross margins to start expanding in the first quarter of fiscal 2027 as its logistics and supply chain costs decline. But analysts still expect its EPS to drop 18% for the full year.
At $40, Nike still isn't undervalued at 23 times this year's earnings. Its forward dividend yield of 4.1% might seem attractive, but it's lower than the 10-Year Treasury's 4.7% yield. So while Nike's stock price might seem historically cheap, it could get even cheaper if it doesn't address its existential challenges. That's why I'd avoid it until a few more green shoots appear.
Don Kaufman (@Theotrade) sees two strong bearish opportunities and one "shot" to the upside on Wednesday's Big 3. He sees a likely pullback in the State Street Health Care Sector SPDR ETF (XLV) amidst Moderna's (MRNA) stellar rally.
Nike (NKE +2.48%)'s stock keeps on hitting new lows and may end up falling to below $30 before the end of 2026. The company is in the midst of a turnaround that could conceivably take years to complete, and even then, it's not a guarantee to be successful. New CEO Elliott Hill took over nearly two years ago, and it's hard to say that the business is really going in the right direction.
Here's why I think Nike's stock is likely to continue to decline, and when it might be worth buying.
Image source: Getty Images.
Nike's stock may look cheap, but it really isn't Investors may see headlines talk about Nike's stock being at a 12-year low and think it must be a cheap buy. It's been in a free fall, for sure. But the business is also far different from what it was 12 years ago. The growth has dried up, and its future is full of question marks. Just take a look at this chart, which effectively shows why the stock is where it is right now.
NKE Net Income and Revenue (Annual) data by YCharts
Profits have declined over the past decade. And while revenue has risen, it's been at a fairly slow pace, which is not what investors would have expected to see from a supposed top growth stock such as Nike. In its most recent fiscal year, which ended on May 31, revenue was flat, and net income was down 3% year over year.
Although the stock has declined significantly in recent years, it's trading at a forward price-to-earnings (P/E) multiple of 23, which is based on analyst projections of how its earnings will look in the year ahead. Paying that high a multiple for a business that's not growing is expensive. The average stock on the S&P 500 trades at a forward P/E of 21.
That's why I could see the stock falling to less than $30 this year, as investors may demand more of a discount for the lack of growth and uncertainty ahead.
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I wouldn't buy Nike's stock until it completely overhauls its business Nike's brand isn't dead. It's still popular. But I don't think its products can be mass-produced anymore. It can't be everything to everyone. As a luxury brand, with limited supply, that's priced high and commands significant margins, I believe it can do well.
But the business, as it stands today, just doesn't look investable given all the competition from foreign and online retailers. Without a drastic overhaul that involves shrinking its operations, I wouldn't consider buying the stock, and I think investors are better off avoiding it as well, as it isn't as cheap as it looks.
BlackRock Inc. reduced its stake in NIKE, Inc. (NYSE:NKE – Free Report) by 10.9% during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 81,814,490 shares of the footwear maker’s stock after selling 9,984,473 shares during the period. BlackRock Inc. owned 5.51% of NIKE worth $3,358,485,000 at the end of the most recent quarter.
Other hedge funds have also added to or reduced their stakes in the company. Scarborough Advisors LLC acquired a new stake in NIKE in the 1st quarter worth about $25,000. Cornerstone Financial Management LLC bought a new position in shares of NIKE in the 4th quarter valued at $26,000. Sankala Group LLC acquired a new position in NIKE during the fourth quarter worth about $26,000. Meeder Asset Management Inc. increased its position in NIKE by 108.4% during the 1st quarter. Meeder Asset Management Inc. now owns 548 shares of the footwear maker’s stock worth $29,000 after purchasing an additional 285 shares in the last quarter. Finally, J.Safra Asset Management Corp bought a new position in shares of NIKE in the 4th quarter valued at $29,000. 64.25% of the stock is owned by institutional investors and hedge funds.
NIKE Stock Up 2.5% NKE stock opened at $40.06 on Wednesday. The stock’s 50 day simple moving average is $42.73 and its 200 day simple moving average is $48.29. NIKE, Inc. has a fifty-two week low of $38.86 and a fifty-two week high of $80.17. The company has a debt-to-equity ratio of 0.40, a quick ratio of 1.36 and a current ratio of 1.96. The company has a market cap of $59.43 billion, a P/E ratio of 19.17, a price-to-earnings-growth ratio of 1.81 and a beta of 1.11.
NIKE (NYSE:NKE – Get Free Report) last released its quarterly earnings data on Tuesday, June 30th. The footwear maker reported $0.20 earnings per share for the quarter, topping the consensus estimate of $0.11 by $0.09. NIKE had a net margin of 6.70% and a return on equity of 16.54%. The firm had revenue of $10.97 billion for the quarter, compared to the consensus estimate of $10.85 billion. During the same quarter in the prior year, the company posted $0.14 earnings per share. The business’s revenue was down 1.1% on a year-over-year basis. On average, research analysts expect that NIKE, Inc. will post 1.74 earnings per share for the current fiscal year. NIKE Dividend Announcement The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Tuesday, September 1st will be paid a $0.41 dividend. This represents a $1.64 dividend on an annualized basis and a yield of 4.1%. The ex-dividend date is Tuesday, September 1st. NIKE’s dividend payout ratio is 78.47%.
More NIKE News Here are the key news stories impacting NIKE this week:
Positive Sentiment: Recent results showed improving wholesale demand, particularly in North America, alongside a sharp improvement in gross margin and better-than-expected earnings. Management’s focus on product innovation and marketplace execution is giving some investors hope that the reset under CEO Elliott Hill can eventually restore growth. Why Nike Stock Is Up Today Positive Sentiment: Valuation and income appeal are attracting contrarian investors. The stock offers a dividend yield near 4%, and NIKE could potentially extend its dividend-growth streak for a 25th consecutive year in 2026. Several company insiders have also purchased shares recently. Nike Stock Dividend Outlook Neutral Sentiment: Analyst targets imply substantial potential upside, with reports citing an average target around $50.66 and a median six-month target of $47.50. However, targets vary widely, underscoring the uncertainty surrounding the turnaround. Nike Price Target Outlook Negative Sentiment: Investors remain concerned that the turnaround is taking too long. NIKE has lost roughly 78% from its 2021 peak and more than $200 billion in market value, while weak direct-to-consumer demand, international pressure and a reported decline in China sales continue to weigh on sentiment. Nike Stock Hits Lowest Level Since 2014 Negative Sentiment: A recent analyst downgrade and weak digital sales have reinforced fears that product and distribution problems will persist. Technical analysts also describe the stock’s trend as severely damaged, limiting confidence that the current rebound represents a durable bottom. What Is Dragging Nike Down? Insider Activity at NIKE In related news, COO Venkatesh Alagirisamy sold 890 shares of NIKE stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $41.60, for a total value of $37,024.00. Following the completion of the transaction, the chief operating officer directly owned 74,820 shares in the company, valued at approximately $3,112,512. The trade was a 1.18% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Matthew Friend sold 2,463 shares of NIKE stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $41.60, for a total value of $102,460.80. Following the transaction, the chief financial officer directly owned 82,165 shares of the company’s stock, valued at $3,418,064. The trade was a 2.91% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 26,142 shares of company stock worth $1,169,380 in the last ninety days. Corporate insiders own 1.10% of the company’s stock.
Wall Street Analyst Weigh In A number of brokerages recently issued reports on NKE. BTIG Research reiterated a “buy” rating and issued a $55.00 price objective on shares of NIKE in a report on Wednesday, July 1st. Stifel Nicolaus set a $45.00 price target on shares of NIKE and gave the company a “hold” rating in a research note on Wednesday, July 1st. Oppenheimer cut their price target on shares of NIKE from $120.00 to $60.00 and set an “outperform” rating on the stock in a report on Friday, June 26th. China Renaissance reduced their price objective on shares of NIKE from $50.30 to $47.30 and set a “hold” rating on the stock in a research note on Thursday, July 2nd. Finally, Barclays decreased their price objective on NIKE from $67.00 to $52.00 and set an “overweight” rating for the company in a report on Wednesday, July 1st. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, eighteen have issued a Hold rating and five have assigned a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $53.53.
Get Our Latest Stock Report on NIKE
NIKE Company Profile (Free Report)
Nike, Inc (NYSE: NKE) is a global designer, marketer and distributor of athletic footwear, apparel, equipment and accessories. Founded in 1964 as Blue Ribbon Sports by Phil Knight and Bill Bowerman and renamed Nike in 1971, the company is headquartered near Beaverton, Oregon. Nike develops and commercializes products across performance and lifestyle categories for sports including running, basketball, soccer and training, and is known for signature technologies and design-driven product lines.
The company markets products under several primary brands, including Nike, Jordan and Converse, and sells through a combination of wholesale relationships, branded retail stores and direct-to-consumer channels such as company-operated stores and digital platforms (e.g., Nike.com and mobile apps).
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NIke (NKE +3.63%) stock peaked five years ago on the strength of pandemic-driven demand, but since then, the business has steadily unraveled due to a string of poor strategic decisions, weak consumer discretionary demand, rising competition, and challenges from tariffs and inflation.
On Monday, the stock sank below $40 for the first time in more than a decade, falling 4% to a 12-year low even as there was no major news out on the stock.
A number of broader factors seem to be behind Nike's continuing slide in recent weeks, including a disappointing earnings report from On Holdings, rising long-term interest rates, which show investors preparing for a longer-term inflationary environment, and continuing risks from an evolving tariff regime.
Investors hoping for a turnaround in Nike stock have been burned for years, but is the flailing stock close to hitting bottom? Let's take a look at Nike's chances for a recovery.
Where Nike stands todayDespite the ongoing stock swoon, there may be more reason to be optimistic about a turnaround than there has been in several quarters.
Much of the tariff fiasco is over, and Nike expects to recover $986 million from International Emergency Economic Powers Act (IEEPA) tariff refunds, which led to a spike in net income in the fourth quarter.
More importantly, because the headwinds from the IEEPA tariffs are beginning to roll off, Nike expects to return to gross margin expansion in the current quarter, which ends in November, and that could mark the beginning of the turnaround in the business. Through the first half of the year, the company forecast revenue down low-to-mid single digits.
The collapse in Nike's stock has come as revenue growth has stalled and gross margin has come down, as the chart below shows.
NKE Gross Profit Margin (Quarterly) data by YCharts
As you can see from the chart, Nike's gross margin slumped from close to 48% to roughly 40% over the last five years, excluding the IEEPA-driven spike in the last quarter, and revenue growth has been flat or negative over the last three years.
Based on those results, it's not surprising the stock has lost more than 75% of its value over the last five years.
Image source: Getty Images.
The key to Nike's comebackWhile the chart above is disconcerting, it also shows that a turnaround may be easier to achieve than investors think. Nike doesn't have to reinvent a whole new business in order for the stock to work from here. It just has to begin to make progress toward its earlier gross margin levels and return to steady revenue growth.
In addition to the forecast for first-quarter gross margin expansion, there are also some green shoots that could point to a recovery.
It's returned to growth in running, one of its biggest categories, as it's gained five percentage points in market share over the last five quarters, and its revenue has grown by $1 billion during that time. That shows the company pushing back on competition from On Holding and Deckers' Hoka brand.
It's returned to growth in North America, its biggest market, where revenue grew 5% in fiscal 2026, a sign its "Sport Offense" strategy is paying off, and it's reinvested in the wholesale channel after neglecting it under former CEO John Donahoe, as wholesale revenue grew by double digits.
Nike should be able to apply some of those lessons learned from the Sport Offense in North America to other regions.
Despite the stock's slide, Nike stock isn't cheap, but analysts expect earnings per share to begin to increase this year and accelerate into the following year.
If Nike can meet those expectations, the stock looks like it's about ready to bottom out. If it gets some help from the macro environment, there could be a lot of upside in the recovery.
Nike's (NKE +3.16%) stock isn't winning any competitions right now. Shares of the beleaguered company are down more than 30% year-to-date and trading near its 52-week low. Nike is in the middle of CEO Elliott Hill's turnaround strategy called, "Win Now." The jury is still out on whether this initiative will be a long-term success, but there is one number that investors should watch this month: $40.
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This dollar amount represents the 52-week low Nike has been flirting with for the last several weeks. While timing the market and basing investment decisions solely on stock price is never a good idea, I do believe this price point will give us insight into how investors feel about "Win Now" and its progress. If Nike falls below $40, it'll be the first time in more than a decade the company has traded below that level. Overall, it's a very bearish sign, signaling investors may be losing patience as they wait for any wins to come from "Win Now."
On the bright side, Nike has some positive momentum at the moment. The athletic brand received a massive tariff refund, totaling $986 million, split between two payments. The company is also rebuilding wholesale channels and investing in teams and athletes to boost loyalty and repeat customers.
Image source: Getty Images.
A new chief financial officer just started on Aug. 17, and Nike is focused on tightening control over Chinese digital distribution as sales continue to fall there. The bottom could be near, and a recovery could soon follow.
Investors will need continued patience with Nike, as we do not yet know whether the strategy to bring back the iconic consumer brand is working as intended or how long it will take. I do not believe Nike is worth buying right now, but the long decline from its 2021 peak might soon be coming to an end.
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.
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Nike (NYSE:NKE | NKE Price Prediction) trades at $39.09, while Wall Street’s average price target sits at $50.66, an implied upside of roughly 30%.
Nike is the world’s largest athletic footwear company and one of the most contentious names in consumer discretionary. CEO Elliott Hill’s Win Now turnaround is grinding into a second year, and shares reflect the frustration. Bernstein’s Aneesha Sherman and Nick Anderson carry a $72 target, implying roughly 84% upside. That gap between price and the most bullish coverage is the real story.
A Year That Erased Nearly Half the Stock Nike is down 47.81% over the trailing 12 months. Shares have slid 37.68% year to date and another 7.17% in the past week alone.
The Q1 FY27 report crystallized the problem. Nike beat EPS by 465%, but a $986 million one-time IEEPA tariff recovery added $0.52 per share. Strip it out and EPS was $0.20. Revenue fell 1% year over year, Greater China dropped 17% currency-neutral, and Converse collapsed roughly 32%.
Insiders piled on. From mid-June through early August, CFO Matt Friend, President Amy Montagne, and three other senior executives sold across 13 disclosed transactions in the $41 to $46 range. Open-market executive purchases were zero.
The $72 Bull Case Bernstein Is Not Backing Off Bernstein’s thesis rests on three ideas: Nike is scaling back over-distributed “Classics” like Air Force 1 and Dunk to clear channel inventory, painful but necessary; gross margins should recover before revenue does as promotional clearance winds down; and performance running and basketball continue to grow across major regions while lifestyle transitions.
Management partially supports the view. Running has posted five consecutive quarters of double-digit growth, adding roughly $1 billion in FY26 and gaining 5 market share points in statement footwear across Western Europe and North America. Q1 FY27 gross margin hit 49.2%, up 890 basis points, though the tariff recovery accounted for most of the lift. CFO Matt Friend now expects gross margin expansion to begin in Q1 FY27, earlier than prior guidance.
Coverage is largely on the sidelines: 1 Strong Buy, 11 Buy, 25 Hold, 1 Sell, and 1 Strong Sell. Bernstein’s $72 sits well above the $50.66 consensus. Hill has said Win Now will sunset by the end of calendar 2026, with Investor Day on November 16 to 17 setting a 12 to 18 month window for the thesis to inflect.
The Footwear Group Fell Together, Nike Fell Deepest The athletic footwear peer group sold off broadly over the past year. Nike is the deepest decliner.
Lululemon (NASDAQ:LULU) trades at $115.74 against a $127.92 target for about 10.5% upside. Shares are down 41.68% over one year on Americas comp weakness. Coverage skews to 1 Buy, 29 Hold, 3 Sell, 1 Strong Sell.
On Holding (NYSE:ONON) trades at $31.31 against a $45.40 target, roughly 45% upside. Down 30.94% over a year despite Q2 revenue growth of 13.5% and gross margin of 65.4%. Coverage skews bullish at 6 Strong Buy, 18 Buy, 3 Hold, 1 Sell.
Deckers (NYSE:DECK) trades at $90.11 against a $122.81 target, roughly 36% upside. HOKA keeps growing double-digits and management raised FY27 EPS guidance. Coverage runs 5 Strong Buy, 8 Buy, 11 Hold, 2 Sell. Down just 12.48% over a year, DECK fell least.
On consensus targets alone, ONON leads the group with 45% implied upside. Only Bernstein’s $72 Nike call sits above it.
What the Consensus Actually Says Nike currently trades at $39.09 with a $50.66 consensus target and roughly 30% implied upside, drawn from 39 analyst ratings.
Shares are down 47.81% over the trailing year and 37.68% year to date. The S&P 500 is up 20.08% and 13.31% over those windows.
Nike trades at 19 trailing P/E and 23 forward P/E with a 3.95% dividend yield. Bernstein’s $72 implies 84% upside if the turnaround inflects.
The Investment Case The bull thesis holds if running momentum, the World Cup activation, and the Sport Offense reorganization stabilize NIKE Direct and Greater China over the next two quarters. The bear thesis strengthens if Converse’s collapse widens, China accelerates lower, and underlying ex-tariff revenue keeps sliding.
Bull case: management delivers margin expansion in Q1 FY27, the $18 billion buyback retires shares at depressed prices, and Investor Day reframes the growth story.
Bear case: eight straight EPS beats mean little when net income leans on tariff recoveries, China is falling faster than management concedes, and insider selling clusters into every rally.
Bernstein’s $72 requires a lot to break right. At $39 with a fortress balance sheet, a 4% yield, and running actually growing, the setup tilts toward a slow rebuild over a value trap.
Contact [email protected] for any questions or corrections.
Trpělivost ohledně slibovaného obratu investorům, zdá se, dochází. Akcie amerického výrobce sportovní obuvi a oblečení Nike pokračují v sestupném trendu, přičemž v pondělí klesly o další čtyři procenta a dostaly se pod hranici 40 dolarů za kus, což je cena, na které se naposledy nacházely v roce 2014. Bídu Nike ilustruje i srovnání s rokem 2021, kdy byly akcie na historickém maximu – od té doby se hodnota společnosti snížila přibližně o 78 procent.
Vývoj odráží přetrvávající skepsi investorů ohledně schopnosti firmy vrátit se v dohledné době k růstu. Nike se nadále potýká se slabší poptávkou, čelí měnícím se preferencím zákazníků i sílící konkurencí na trhu se sportovním vybavením, hodnotí server Yahoo Finance.
Od zmíněného maxima z listopadu 2021 se tržní hodnota Nike propadla o více než 200 miliard dolarů. Během tohoto náročného 57měsíčního období klesly samotné akcie zhruba o 78 procent, což vysílá varování, že sportovní gigant je uvězněn v ničivém technickém kolapsu.
„Akcie s podobným vzorcem, jaký nyní vykazuje Nike, a nacházející se ve fázi označované jako Stage 4 (odkaz na technickou metodiku Stan Weinstein's Stage Analysis, pozn. red.), obvykle ztrácejí kolem 72 procent své hodnoty a návrat na předchozí cenová maxima jim v průměru trvá pět let,“ uvedl pro server Benzinga Thierry Borgeat, investiční ředitel společnosti Arvy.
Podle něj je situace o to rizikovější, že historie ukazuje, že jen přibližně polovina takto zasažených akcií se na svá předchozí maxima skutečně vrátí. Druhá polovina zůstane dlouhodobě pod tlakem nebo postupně ztratí význam na trhu.
Vývoj akcií Nike za posledních pět let:
Pokračující pokles tržeb
Sentiment nevylepšily ani v pondělí zveřejněné hospodářské výsledky. Za své čtvrté fiskální čtvrtletí vykázal Nike tržby ve výši 11 miliard dolarů, což představovalo meziroční pokles o jedno procento. Po očištění o vliv měnových kurzů činil pokles dokonce čtyři procenta.
Na první dobrou vyzněl pozitivně zisk na akcii, jenž činil 0,72 dolaru. Toto číslo ovšem významně ovlivnila jednorázová účetní položka související s očekávaným navrácením části celních nákladů, která přidala zhruba 0,52 dolaru na akcii. Po vyloučení tohoto efektu tak byl obraz hospodaření podstatně méně přesvědčivý.
Nic pozitivního nevzešlo ani z výhledu. Společnost očekává, že v prvním fiskálním kvartálu tržby meziročně klesnou o nízké až střední jednociferné procento a zisk na akcii by měl během následujících tří čtvrtletí v zásadě stagnovat, pokud se nezapočítají mimořádné výnosy z celních refundací.
„Zatím neexistují žádné náznaky toho, že by se tržby mohly v dohledné době obrátit k kladným hodnotám — nevidíme jasný důvod rozšiřovat poměr P/E (z 22x konsenzuálního EPS pro fiskální rok 2027),“ uvedl ve svém komentáři analytik Evercore ISI Michael Binetti v poznámce.
Vedle toho Nike čelí stále ostřejší konkurenci. Kromětradičních rivalů se prosazují i nové rychle rostoucí značky jako například švýcarská On Holding, které dokážou oslovovat zákazníky novými produkty a silnou pozicí v běžeckém segmentu. Slabší spotřebitelská nálada na některých trzích pak omezuje ochotu utrácet za prémiovou sportovní obuv a oblečení.
"Návrat ke kořenům"
K nelehké situaci společnosti se vyjádřila také basketbalová hvězda LeBron James, dlouholetý ambasador značky Nike. „(Značka) se musí vrátit ke svým kořenům," řekl pro Yahoo Sports s tím, že by společnost měla obnovit užší kontakt s komunitami i mladší generací sportovců. Silné vazby na lokální sportovní prostředí a schopnost naslouchat zákazníkům byly podle něj v minulosti jedním z hlavních pilířů úspěchu značky.
Od začátku letošního roku akcie Nike klesly bezmála o 40 procent. Agentura Bloomberg eviduje na základě svých shromážděných dat u titulu 17 nákupů, 23 držení a čtyři prodeje s průměrnou cílovou cenou 51 dolarů.
For decades, Nike (NKE -4.03%) has operated as a leader in the global market for sports footwear and apparel. But that winning position has come under fire in recent years. The brand known for inspiring, empowering, and motivating its customers has failed at doing just that for its investors. As of Aug. 14, shares trade 77% below their peak from November 2021.
It's hard to get excited about the company's prospects when it's in the middle of a multi-year turnaround in an intensely competitive industry. However, the consumer discretionary stock might pique the interest of investors seeking a nice income stream they can depend on.
Nike currently boasts a dividend yield of 4%. And the business is on track to make 2026 the 25th straight year that the quarterly payout will be raised.
Image source: The Motley Fool.
Taking care of shareholders through the ups and downs Last November, Nike raised its dividend payout for the 24th consecutive year. It bumped the quarterly distribution to $0.41 per share, which equates to $1.64 on an annualized basis. Since the share price has cratered, the yield has gotten a boost. Compared with the S&P 500 index's 1.03% dividend yield, the sportswear giant offers investors nearly four times the cash return.
It's likely that another hike will be announced later this year. Historically, Nike has implemented a dividend payout increase in November. If the trend continues, the business will officially be recognized as a Dividend Aristocrat®, a group of S&P 500 companies that have a 25-year (or longer) dividend-raise streak alive.
It's easy to consistently increase the dividend when financial performance is stellar, as profits and free cash flow should support capital returns. It's impressive when businesses do this. It's even more remarkable, on the other hand, to see Nike's leadership team remain committed to shareholders during a multi-year stretch of notable headwinds and relentless competitive pressures.
After 32-year Nike veteran Elliott Hill took the CEO position in October 2024, management has made efforts to improve product innovation and freshness, right-size distribution to balance wholesale and direct-to-consumer channels, and bolster the brand, all while bringing sports back into the center of the strategy. But progress is taking time. The share price has tanked 50% since Hill took over.
In the past three fiscal years, though, Nike has paid $6.9 billion in cumulative dividends. This is a notable sum that's equal to 11% of the company's market capitalization.
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Passive income for investors bullish on Nike Nike's revenue is projected to fall 1.5% in fiscal 2027 on a year-over-year basis. Over the next two years, this key financial metric is expected to grow by less than 4% annually. These estimates are based on consensus figures from the sell-side analyst community.
This outlook makes it extremely difficult to be bullish on Nike and view it as a compelling portfolio addition right now. That perspective is supported by the stock's precipitous decline.
However, it wouldn't be surprising to learn that some investors are still optimistic. After all, this is one of the world's most recognizable consumer brands. This introduces an invaluable intangible asset that Nike's peers don't have.
And now that it appears the company's financial performance has stabilized, there's less risk that the dividend streak will be disrupted. Nike reported $3.1 billion in net profit in fiscal 2026, and it has $9 billion in cash, cash equivalents, and short-term investments on its balance sheet.
If you're bullish on Nike's ability to return to healthy and sustainable revenue and earnings growth sooner rather than later, this setup is interesting, particularly given that the price-to-earnings ratio is near a 10-year low. Of course, your patience will be tested. But you can sit back, relax, and earn a 4% dividend yield while you wait for the business to improve, which could take longer than expected.
Nike (NYSE: NKE) stock has fallen another 4%, trading at $39.06 at the time of writing on August 18, a level that marks a new 52-week low and the lowest intraday level in roughly 12 years.
With the S&P 500 also down 0.4%, and the Dow Jones Industrial Average falling 0.5%, the broader market provided little support, but the latest selloff was also triggered by weaker-than-expected results from rival On Holding (NYSE: ONON).
The Swiss sportswear company reported second-quarter sales of $1.07 billion, below the $1.11 billion consensus estimate, while its full-year 2026 revenue outlook of roughly $4.39 billion to $4.50 billion also fell short of investor expectations. As such, the results appear to suggest that slowing consumer demand is beginning to affect even brands that have enjoyed strong recent momentum.
As a result of the consistent downward trend, Nike has lost nearly 80% of its market cap over the last 5 years as it dropped from the record high of $177.51 in November 2021.
All-time Nike stock price. Source: Google Finance Nike stock continues to plummet On Holding results prompted investors to reassess the broader athletic footwear sector. While On is still in an expansion phase, Nike has been under pressure for the better part of a decade now, which is making investors increasingly skeptical about when, or if, it can recuperate.
Currently, the Asian market remains one of Nike’s biggest challenges. In fiscal 2026, Nike generated $5.85 billion in revenue in Greater China, down 11% year over year, or 13% on a currency-neutral basis. Digital DTC sales fell 29%, footwear revenue declined 14%, and operating profit dropped 20% to $1.28 billion.
The weakness suggests that Nike’s problems extend beyond a temporary slowdown in consumer spending. For comparison, domestic brands, such as Anta and Li-Ning, continue to gain ground due to what many ascribe to a better understanding of local consumer practices.
Adding another layer of uncertainty. Chief Accounting Officer Johanna Nielsen is set to resign effective September 4, with Chief Financial Officer David Denton assuming the role of Interim Corporate Controller.
Is Nike stock a buy? Nike’s long-term chart thus remains firmly bearish. As mentioned, following its record high in late 2021, the pattern has been characterized by nothing but lower highs and lower lows. Certainly, brief rallies in 2022 and 2023 offered some short-term relief, but the broader descending trendline is undisputed.
Market sentiment is accordingly mixed. The latest decline also follows a downgrade from JPMorgan, which revised its rating on the stock from ‘Neutral’ to ‘Underweight’ on concerns that Nike’s ‘Win Now’ strategy could weigh on future profitability.
Some analysts, such as Gurgavin Chandhoke, CEO and founder of uINVSTE, argue that shares are overpriced even at their current levels.
On the other hand, the Wall Street consensus remains slightly more bullish, with NKE currently enjoying a ‘Moderate Buy’ consensus from a total of 25 research notes over the past three months, per TipRanks data available at press time.
Nike stock price prediction. Source: TipRanks Collectively, the 25 analysts assign an average Nike stock price target of $50.29, which implies a roughly 28% upside from the current price.
