Think It's Too Late to Buy Nike? Here's the Biggest Reason Why There's Still Time

Core Insights - Nike has faced significant challenges in recent years but is showing signs of recovery and potential growth [1][6] - The company has made strategic changes in leadership and is focusing on innovation and brand rebuilding [4][10] Financial Performance - For the fiscal year, Nike's revenue decreased by 10% to $46.3 billion, and net income fell by 44% to $3.2 billion [8] - In the fourth quarter, revenue dropped 12% to $11.1 billion, with net income down 86% to $211 million [8] - The company anticipates a mid-single-digit revenue decline for the first quarter, with additional cost pressures from tariffs estimated at $1 billion [9] Competitive Advantages - Nike maintains a strong roster of high-profile sponsors and is recognized as the most valuable brand in sportswear [10][11] - The brand's legacy products, such as the Air Force 1 and Air Jordan, continue to have significant consumer appeal [11][12] Growth Potential - If Nike can return to its previous profit levels, it has the potential to recover its stock price, which is currently over 50% lower than its peak in 2021 [6][14] - The footwear and apparel market has grown since 2021, providing a favorable environment for Nike's recovery [13][14]