Core Insights - Nike is shifting its strategy regarding the rapidly growing sport of pickleball by signing Anna Leigh Waters, the top-ranked pickleball player, as its first sponsored professional athlete in this sport [1] Company Strategy - The decision to sponsor Anna Leigh Waters indicates a proactive approach by Nike towards engaging with the pickleball market, which combines elements of tennis, badminton, and ping-pong [1]

Core Viewpoint - Nike is undergoing a significant turnaround after experiencing a decline in performance, with plans to improve innovation and distribution to regain market strength [4]. Financial Performance - Nike generated over $46 billion in revenue in fiscal 2025, but reported diluted earnings per share (EPS) of $2.16, a 42% year-over-year decline [2][5]. - The consensus analyst estimate for fiscal 2026 predicts a further 28% drop in diluted EPS [2]. - Revenue growth was strong at 9.6% in fiscal 2023, but fell by 9.8% in the last fiscal year, with only a 1% gain forecasted for fiscal 2026 [3]. Market Position - Despite recent struggles, Nike maintains a strong brand presence and pricing power, with a gross margin of 40.6% in Q2 2026 [5]. - The company continues to attract consumers with limited-edition releases and has a robust marketing strategy that enhances its competitive advantage [5]. Investment Considerations - Current market conditions suggest that Nike is not a buy-and-hold-forever stock, but may present opportunities for investors with higher risk tolerance [6]. - The potential for a successful turnaround could lead to significant gains, although it may take longer than expected for improvements to materialize [6].

Group 1 - The core viewpoint of the article highlights the stark contrast between the booming global sports trend in 2025 and the significant decline in stock prices of major footwear brands, with Nike dropping from $179.1 to $65.64, Adidas falling over 30%, and Puma experiencing a 51.34% drop [2][3] - The overall slowdown in the athletic shoe market is a contributing factor to disappointing stock performances, with Bank of America's report indicating that the average organic growth rate for global sports brands has plummeted from 13.38% in 2022 to 1.33% in 2025, suggesting a shift towards stock competition after two decades of rapid growth [2][3] - Asics stands out as a notable exception, with its market value increasing from 1 trillion to over 3 trillion yen, and its stock price rising nearly 30% this year, making it the fastest-growing athletic shoe brand on the second-hand platform StockX for the past year [2][3] Group 2 - Asics, despite its relatively limited scale and global recognition compared to Nike and Adidas, demonstrates that patience, focus, and rhythm control may be more important than explosive growth in a long-term industry marathon [3][4] - The brand's historical roots trace back to Onitsuka Tiger, founded in 1949, which later evolved into Asics, emphasizing quality and affordability to penetrate the market dominated by Adidas and Puma [6][7] - Asics' resurgence is attributed to a strategic shift back to running shoes, with significant technological advancements like the Alpha GEL midsole introduced in 1986, which helped solidify its position in the serious running market [17][19] Group 3 - The brand's recent growth strategy includes a focus on core competencies, with a significant reduction in product lines under the leadership of President Yasuhito Hirota, who has streamlined operations by exiting non-core businesses [23] - Asics' business segments now include running shoes, core sports, sports fashion, apparel equipment, and Onitsuka Tiger, with running shoes contributing the largest share at 48% in the fiscal year 2024 [23] - The Greater China region has become a crucial market, accounting for approximately 15% of revenue, with Onitsuka Tiger seeing a 50.1% year-on-year growth in the second quarter of 2025, indicating a strong consumer base in China [23]

Core Insights - Nike and Starbucks are both iconic brands that have faced challenges due to rising inflation and have recently changed their CEOs to implement turnaround strategies [1][7] - Both companies finished the previous year with negative stock performance, with Nike down 16% and Starbucks down 8% [2] Company Performance - Starbucks appointed Brian Niccol as CEO in September 2024, focusing on simplifying the menu, reducing wait times, and enhancing customer experience, which has positively impacted investor confidence [3] - Nike appointed Elliott Hill as CEO in October 2024, choosing an internal candidate with extensive company knowledge, focusing on improving wholesale relationships and brand investment [4] - Both companies have shown initial signs of progress in growth rates over recent quarters under their new leadership [5] Margin Pressure - Gross profit margin is a critical metric for assessing the impact of rising costs and pricing strategies on both companies [6] - Nike has experienced a smaller decline in its margin, losing about four percentage points from its recent high, compared to Starbucks, which has lost nearly eight percentage points [8]

Core Insights - The upcoming Winter Olympics in Milan is expected to highlight the intersection of sports and fashion, with major sports brands using the event as a platform for showcasing their latest collections [1] - In 2025, approximately 15 mainstream sports brands participated in over 45 independent fashion events globally, with around 18 events held in the Chinese market [1] Group 1: Major Events and Brand Participation - Nike and adidas led the fashion shows, with Nike debuting its "Victory Lap" show in April and adidas showcasing its "POWER OF THREE" in October, both in Shanghai [2][8] - High-end outdoor brands like HOKA and Descente are also making their mark, with HOKA presenting at the Taipei Fashion Week and Descente launching a show in Beijing [4][11] - SALOMON hosted its first show in China, blending French outdoor culture with local elements [5][13] Group 2: Fashion and Sports Integration - The integration of sports and fashion is becoming more pronounced, with brands like HELLY HANSEN using unique venues like natural caves for their shows, emphasizing the connection between outdoor activities and fashion [7][17] - The concept of fashion shows as a new competitive arena for sports brands is emerging, with both international giants and local brands participating in multiple events [17][18] Group 3: Consumer Identity and Market Trends - Fashionable sports products are becoming identity markers for individuals and groups, with high-end sports brands serving as alternatives to luxury goods for the middle class [18][20] - The trend of "Protein chic" and the popularity of healthy body images are influencing fashion aesthetics, indicating a shift in consumer preferences towards active lifestyles [31] Group 4: Marketing and Sales Strategies - Fashion shows are increasingly being used as a marketing tool to connect with buyers and retailers, enhancing sales opportunities for brands [25][28] - The cost of hosting fashion shows is significant, but the potential for high returns through celebrity appearances and social media engagement makes it a worthwhile investment for brands [22][24]

Key Takeaways NKE's Q2 fiscal 2026 gross profit fell 6.3% as gross margin dropped 300 bps to 40.6% amid cost pressures.Tariffs, inventory obsolescence in Greater China and weak demand weighed on margins and channel mix.NKE is mitigating tariffs via manufacturing diversification, selective price hikes and cost controls.NIKE, Inc. (NKE) continues to face considerable margin pressure stemming from higher tariffs, unfavorable channel mix and soft demand in key markets. These pressures are further compounded by ...

Core Viewpoint - Nike's stock price has declined over 50% in the past five years, despite its strong brand recognition and sponsorship deals with elite athletes [1] Group 1: Financial Performance - Nike's current dividend yield is 2.5%, which is attractive given its poor stock performance [2] - In Q2 of fiscal 2026, revenue increased by 1% year over year, but net income fell by over 30% [4] - Wholesale revenue, Nike's largest segment, grew by 8% year over year, while Nike Direct revenue decreased by 8% [5] Group 2: Regional Sales Performance - North American revenue increased by 9%, but sales in other regions, including Europe, China, and Asia Pacific & Latin America, declined by 1%, 16%, and 4% respectively [6] - International sales, which account for over half of Nike's revenue, are under pressure from tariffs, trade wars, and rising competition [6] Group 3: Market Position and Growth Potential - Nike has been losing market share for years, with only the apparel segment showing meaningful growth, which has decelerated [7] - Executives believe North American sales growth indicates a comeback, but the potential for further growth in this saturated market may be limited [8]

Key Points Nike has been losing market share for years, and that trend is likely to continue. The apparel segment was the only part of the business that meaningfully grew in its fiscal 2026 Q2, and that growth decelerated sequentially. International sales, which represent a significant portion of total revenue, continue to drop. 10 stocks we like better than Nike › Nike (NYSE: NKE) is one of the most recognizable athletic brands in the world. The company has numerous sponsorship deals with elite ...

We recently published 9 Stocks on Jim Cramer’s Radar.  NIKE, Inc. (NYSE:NKE) is one of the stocks on Jim Cramer's radar. NIKE, Inc. (NYSE:NKE)’s shares are down by 8% over the past year as the firm struggles to convince markets about the merits of its turnaround. However, since mid-December, the stock is up by 15%. Despite the stock’s woes, Cramer has continued to defend NIKE, Inc. (NYSE:NKE). He believes that the firm’s CEO, Elliott Hill, is the right executive for the job. More recently, the CNBC TV hos ...

Company - Nike has signed a deal with Anna Leigh Waters, the No. 1-ranked pickleball player, making her the first pickleball athlete to join Nike's roster [1] - The terms of the deal remain undisclosed, but Waters will represent Nike for apparel and footwear at all her events and serve as a global ambassador for pickleball [1] - Nike is currently undergoing a turnaround plan under new CEO Elliott Hill due to previous lagging sales and a stock slump [2] Industry - Pickleball has experienced explosive growth in recent years, indicating a rising trend in the sport [2] - Anna Leigh Waters has had a record-breaking year, holding the No. 1 rank in women's singles, doubles, and mixed doubles, with a total of 181 gold medals and 39 career triple crowns [3] - Waters began her professional pickleball career in 2019 at the age of 12, becoming the youngest-ever pro pickleball player [3]