From Yahoo Finance: 2025-03-22 11:00:00

Nike stock has been struggling, down over 30% in the past year and barely moving in the last five. CEO Elliott Hill is implementing a “Win Now” plan to reverse the damage, focusing on innovation and improving relationships with wholesale partners.

Nike’s recent earnings saw a 9% revenue drop to $11.3 billion, with a 30% EPS decline to $0.54. The company faces challenges, especially in China, where revenue fell 17%. Gross margins are expected to see further pressure, and revenue is forecasted to decline in the mid-teens range in fiscal Q4.

It will take time for Nike’s turnaround efforts to show results, causing near-term pain. Analysts expect a decline in gross margins in fiscal Q4, with challenges like tariffs and restructuring charges. Management anticipates revenue decline due to geopolitical uncertainty and other headwinds.

Despite the current challenges, Nike is working towards restoring its brand health and improving sales. It may take at least a year to see positive results, but signs of progress could lead to a stock rally. Investors should monitor Nike’s turnaround closely for potential opportunities.

Read more: Will Nike Investors’ Frustrations End Anytime Soon?