Nike Stock: Reasonably Priced or Still Too Expensive?​

Core Viewpoint - Nike's stock price has declined over 50% in the past five years, despite its strong brand recognition and sponsorship deals with elite athletes [1] Group 1: Financial Performance - Nike's current dividend yield is 2.5%, which is attractive given its poor stock performance [2] - In Q2 of fiscal 2026, revenue increased by 1% year over year, but net income fell by over 30% [4] - Wholesale revenue, Nike's largest segment, grew by 8% year over year, while Nike Direct revenue decreased by 8% [5] Group 2: Regional Sales Performance - North American revenue increased by 9%, but sales in other regions, including Europe, China, and Asia Pacific & Latin America, declined by 1%, 16%, and 4% respectively [6] - International sales, which account for over half of Nike's revenue, are under pressure from tariffs, trade wars, and rising competition [6] Group 3: Market Position and Growth Potential - Nike has been losing market share for years, with only the apparel segment showing meaningful growth, which has decelerated [7] - Executives believe North American sales growth indicates a comeback, but the potential for further growth in this saturated market may be limited [8]