Nike shares have fallen 20% since announcing Elliott Hill’s return as CEO in 2024. Despite Nike reporting a 1% revenue increase to $12.4 billion in the second quarter, profit dropped 32% to $792 million due to challenges in China and tariffs. Hill remains confident in Nike’s direction, especially in North America.

Investors are uncertain about Nike’s turnaround, as shares dropped 10% despite revenue growth in North America. Nike’s focus on full-price sales led to a decrease in consumer spending on promotions. Analysts see potential in Nike’s strategy, with Bank of America calling the quarter’s results successful execution.

Although Nike’s latest numbers disappointed investors, there were positive aspects, such as successful execution of the full-price sales strategy. Profit margins would have improved without tariffs, according to senior research analyst Kevin McCarthy. Despite the stock slide, some analysts like McCarthy see an opportunity to buy Nike shares.

Read more at Yahoo Finance: Nike’s Turnaround Is ‘Going to Take Time.’ Meanwhile, The Stock Is Sliding.