Nike is a global company that designs, manufactures, and sells footwear, apparel, equipment, and accessories for athletes, fitness enthusiasts, and everyday consumers. Its products range from running shoes and training apparel to sports gear, with performance features like cushioning, support, moisture-wicking fabrics, and durable materials. Nike distributes through its own stores, its online shop, and third-party retailers, and it also leverages athlete and team endorsements and a membership program to boost sales and engagement. The company differentiates itself through a strong brand built on high-profile endorsements, a broad direct-to-consumer network, a deep product catalog, and a commitment to sustainability and social impact. Nike’s goal is to grow as a leading global sports brand by delivering high-quality products and compelling retail experiences, while reducing its environmental footprint and increasing positive social impact.
Company Size
10,001+
Company Stage
IPO
Headquarters
Beaverton, Oregon
Founded
1964
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Health Insurance
Remote Work Options
Flexible Work Hours
Seven major S&P 500 companies with market capitalizations exceeding $20 billion need to rally at least 200% to reach their previous all-time highs, according to Bespoke. The struggling firms include PG&E, PayPal, Ford, Nike, Las Vegas Sands, Zoetis, and Crown Castle. Nike has experienced particularly poor performance, with the company's stock trading at record lows and its dividend yield approaching 5%. Recent quarterly results showed Nike Brand sales fell 4%, online sales dropped 13%, Converse sales declined 28%, and China sales crashed 26%. CEO Elliott Hill indicated that weakness in the sportswear market would persist. PayPal faces intense competition in the payments sector. New CEO Enrique Lores reportedly declined a buyout offer from Stripe and will focus on cost reductions and improving customer experience.
Nike's quarterly filing has drawn mixed reactions from analysts, with concerns over reduced transparency offsetting some positive signals. BNP Paribas criticised Nike's decision to stop disclosing regional comparable store sales, a metric it has provided since 2011. Analyst Laurent Vasilescu said the change reduces visibility on brick-and-mortar growth drivers and follows Nike's earlier pullback on regional accounts receivable data. He maintains an "underperform" rating, with a price target of $19. However, Guggenheim Securities highlighted encouraging trends, including five consecutive quarters of North America footwear unit growth and the region's first margin expansion since Q4 2024. North America inventory declined 1% after two years of growth. CEO Elliott Hill's turnaround plan, launched in October 2024, is expected to take 12–18 months, with more details coming at Nike's investor day on 16-17 November.
Nike launched Caitlin Clark's signature collection on 1 October, the day it reported earnings showing a 4% revenue decline. The company forecasts full-year revenue to drop by a high single-digit percentage, with adjusted earnings per share between $1.15 and $1.35. Nike currently trades at a forward P/E of about 21.0x, roughly 28% below its recent historical average of 32.97x. However, with EPS forecast to drop 14.38% this fiscal year, the lower multiple reflects weaker near-term prospects rather than value. Hedge fund ownership fell from 71 funds at the end of Q1 2026 to 56 funds at the end of Q2 2026. Short interest remained high at 8.98% of float as of 15 September 2026, suggesting investors want evidence of recovery before buying.
Nike reported first-quarter fiscal 2027 revenue of $11.2 billion, down 4% year over year and below analyst estimates. The consumer discretionary stock has fallen 81% from its November 2021 peak. The company currently pays an annualised dividend of $1.64 per share, yielding nearly 5%. Investors would need approximately 6,100 shares to generate $10,000 in annual dividend income. Nike has increased its dividend for 25 consecutive years. Despite the attractive dividend yield and healthy financial position, Nike faces challenges with product innovation. Smaller competitors have gained traction with in-demand shoes that resonate more strongly with consumers. The company's difficulties are expected to continue in the near term.
Nike faces a new challenge as AI shopping agents could steer customers away from legacy brands, according to retail CEO Jan Kniffen. The sportswear giant's shares have fallen 47% this year amid declining sales, with revenue dropping 4% in the latest quarter. Kniffen warned that AI agents making purchase decisions for shoppers might recommend competitors like Hoka or On based on fit and price, unless customers specifically request Nike by name. The company has responded by planning to sell through Google's Gemini chatbot. Nike reported quarterly revenue of $11.2 billion, but sportswear sales fell by a low-double-digit percentage and Greater China sales dropped 26%. The company announced layoffs beginning in 2027. Citi analysts noted Nike is becoming "a cost-cutting story".