Nike stock drops following earnings, making money on the AI trade in 2026

分组1 - The core message of the article is that Nike's recent quarterly performance and guidance have been disappointing, contradicting the positive analyst sentiment surrounding the company [2][6][29] - Quarterly sales increased by only 1%, while direct sales dropped by 8%, indicating struggles in both online and physical retail [3][4] - Gross profit margin decreased by 300 basis points year-over-year, attributed to discounting on unsold products and the impact of Trump tariffs [4][29] 分组2 - Converse sales plummeted by 30%, raising speculation about Nike potentially divesting this brand [4][32] - Footwear sales in China fell by 21%, highlighting significant challenges in a previously strong market [5][14] - The guidance for the current quarter missed estimates, suggesting a lack of confidence in future performance [6][13] 分组3 - Analysts are questioning the credibility of management's optimistic messaging given the poor performance metrics [6][12] - The company is facing intense competition, particularly in China, where local brands are gaining traction [14][17] - There is a broader concern about the economic environment, with expectations of a sluggish economy impacting consumer spending [8][29]