Nike shares slide on Q2 results despite beat on earnings and revenue

Core Viewpoint - Nike's stock has seen a decline of over 4% following recent results, raising questions about the impact of China weakness versus wholesale strength on investor sentiment [1] Group 1: Financial Performance - The wholesale segment is highlighted as a significant area of strength for Nike, with a focus on re-engaging with wholesale partners contributing to positive sales growth [2] - North American sales growth has accelerated from the previous quarter, exceeding expectations, indicating successful strategic focus [2] Group 2: Investor Sentiment - There is notable skepticism among investors regarding Nike's turnaround, with many choosing to wait for clearer signs of recovery before investing [3][4] - The current macroeconomic environment is challenging, with consumers feeling financially stretched, which may impact spending on Nike products [5] Group 3: Competitive Landscape - Concerns about competition from smaller brands are present, but there is a belief that these brands have not made significant inroads into wholesale markets [7] - If Nike's turnaround fails, it could create opportunities for smaller brands to gain market share, as Nike has previously focused less on innovation and wholesale [9][10]