As Nike Stock Slides, What’s Dragging the Swoosh Down + 2 Bright Spots

Core Viewpoint - Nike's stock faced significant challenges despite better-than-expected performance in the second quarter, primarily due to difficulties in turning around Converse and operations in Greater China [1]. Financial Performance - Nike reported net sales of $12.43 billion, a 1 percent increase from $12.35 billion year-over-year, remaining flat on a currency-neutral basis [4]. - Net income decreased by 32 percent to $792 million from $1.16 billion in the same period last year [4]. - Diluted earnings per share fell to 53 cents from 78 cents in Q2 [4]. Strategic Actions - The company is in the "middle innings" of its comeback, with various business areas at different turnaround phases, according to CEO Elliott Hill [2]. - Fiscal year '26 is focused on resizing the classics business, enhancing Nike's digital experience, diversifying the product portfolio, and strengthening consumer and partner relationships [3]. Market Insights - Analyst Sam Poser noted improvements in Nike's product offerings and sell-through rates based on retailer checks [5]. - Some channels are performing better than others, with new wholesale accounts showing unexpectedly high sell-through rates [6]. Regional Focus - In Greater China, Nike has implemented its "Win Now" strategy in key cities like Beijing and Shanghai, focusing on storytelling, assortment editing, and enhancing product presentation [7].