Nike Stock: Reasonably Priced or Still Too Expensive?

Core Insights - Nike's stock price has decreased by over 50% in the past five years despite its strong brand recognition and sponsorship deals with elite athletes [1] - The current dividend yield stands at 2.5%, which is a positive aspect for investors, but overall sales growth remains stagnant [2] Financial Performance - In Q2 of fiscal 2026, Nike reported a 1% year-over-year revenue increase, while net income fell by over 30% [4] - Wholesale revenue, Nike's largest segment, increased by 8% year-over-year, but Nike Direct revenue fell by 8% [5] - North American revenue grew by 9%, but international sales in Europe, China, and Asia Pacific & Latin America declined by 1%, 16%, and 4% respectively [6] Market Dynamics - Nike has been losing market share for several years, with only the apparel segment showing meaningful growth, which has decelerated sequentially [7] - The company faces challenges from tariffs, high consumer costs, and rising competition, which could further hinder growth [5][6] - Executives believe that the growth in North America indicates a potential comeback, but the market may be saturated, limiting further expansion opportunities [8]