How Good Has Nike (NKE) Stock Actually Been?

Core Viewpoint - Nike has been underperforming in the market over the past five years despite being the largest athletic wear company globally and the largest apparel company in the U.S. [1] Group 1: Market Performance - Nike's stock has significantly lagged behind the S&P 500, with a 5-year total return of -50% compared to the S&P 500's 100% [8] - The company's stock has not performed well recently, with a 1-year total return of -17% and a 3-year total return of -38% [8] Group 2: Challenges and Competition - The company faces headwinds due to an inflationary environment and has made strategic missteps, such as reducing wholesale partnerships to focus on direct-to-consumer sales [2][3] - Nike has diluted its premium branding through markdowns to attract a broader audience, which has opened opportunities for competitors like Brooks Running and On Holding [2][3] Group 3: Management Response - A new CEO has been appointed to drive innovation and faster product launches, with some progress noted in fiscal Q1 2026, where revenue was roughly flat year-over-year [4] - The growth in revenue primarily came from the wholesale business, indicating a potential shift in strategy [4] Group 4: Economic Environment - The apparel retail environment remains challenging as consumers are conserving spending amid ongoing inflation and economic uncertainty [5]