Nike aims for double-digit EBIT margins by enhancing sports strategy and improving operational efficiency.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 18 2025
0mins
Source: SeekingAlpha
Management Insights: CEO Elliott Hill highlighted NIKE's transformation efforts, focusing on right-sizing the Classics business, enhancing NIKE Digital, and diversifying the product portfolio. Leadership changes were announced to streamline decision-making, with North America showing strong growth.
Financial Performance: NIKE reported a 1% revenue growth, with significant declines in NIKE Direct and Digital sales. Gross margins fell due to increased product costs from tariffs, while North America saw a 9% revenue increase, contrasting with a 16% decline in Greater China.
Outlook and Challenges: Management anticipates low single-digit revenue declines in Q3, with ongoing headwinds in Greater China and Converse. They expect margin pressures from tariffs and inventory issues but remain focused on strategic actions to drive recovery.
Analyst Sentiment: Analysts expressed cautious optimism regarding NIKE's recovery, emphasizing the need for clarity on margin expansion and the impact of tariffs. Management maintained a confident tone but acknowledged the non-linear nature of recovery across different regions.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy NKE?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on NKE
Wall Street analysts forecast NKE stock price to rise
21 Analyst Rating
14 Buy
7 Hold
0 Sell
Moderate Buy
Current: 61.100
Low
62.00
Averages
76.11
High
110.00
Current: 61.100
Low
62.00
Averages
76.11
High
110.00
About NKE
NIKE, Inc. is engaged in the designing, marketing and distributing of athletic footwear, apparel, equipment and accessories and services for sports and fitness activities. The Company's operating segments include North America; Europe, Middle East & Africa (EMEA); Greater China; and Asia Pacific & Latin America (APLA). It sells a line of equipment and accessories under the NIKE Brand name, including bags, socks, sport balls, eyewear, timepieces, digital devices, bats, gloves, protective equipment and other equipment designed for sports activities. It also designs products specifically for the Jordan Brand and Converse. The Jordan Brand designs, distributes and licenses athletic and casual footwear, apparel and accessories predominantly focused on basketball performance and culture using the Jumpman trademark. The Company also designs, distributes and licenses casual sneakers, apparel and accessories under the Chuck Taylor, All Star, One Star, Star Chevron and Jack Purcell trademarks.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Analysts Predict Shift to Value Stocks in 2026
- Turnaround Strategy: Nike replaced CEO John Donahue with Elliott Hill in 2024, who is implementing the 'Win Now' strategy that leverages the brand's strength and innovation capabilities to reverse the performance decline, although overall sales growth remains sluggish and flat.
- Wholesale Channel Growth: The company's wholesale revenue improved by 8% in the most recent quarter, yet gross margin contracted by 3 percentage points due to tariff impacts, indicating that efforts to diversify sales channels are gradually bearing fruit.
- North America and Europe Markets: North America saw a 9% revenue increase, while Europe grew by 3% after adjusting for foreign exchange effects, suggesting that Nike's growth momentum in these regions is accelerating, despite a 17% year-over-year sales decline in China.
- Future Outlook: Analysts forecast Nike's earnings per share to reach $2.47 for fiscal 2027, a significant increase from $1.75 for fiscal 2026, and although the current stock price is around $60 with a price-to-earnings ratio of about 25, Nike is expected to achieve a strong rebound in revenue and profitability in the long term.
See More
Nike's Turnaround: Opportunities and Challenges
- Turnaround Strategy: Nike replaced CEO John Donahoe with Elliott Hill in 2024, who is implementing the 'Win Now' strategy that leverages the brand's strength and innovation to expand sales channels through renewed wholesale agreements, aiming to drive revenue growth.
- Sales Growth Challenges: Despite an 8% increase in wholesale revenue last quarter, overall sales growth remained flat on a currency-neutral basis, highlighting the challenges Nike faces in market recovery, particularly with a 17% year-over-year decline in sales in China.
- Future Outlook: Analysts predict a significant rebound in Nike's earnings per share, forecasting $2.47 for fiscal 2027, up from $1.75 in fiscal 2026, indicating potential profitability recovery as the company overcomes the impact of Trump tariffs.
- Market Opportunities: The Chinese market presents substantial potential, with government plans to expand the sports industry to a $1 trillion market by 2030, and Nike, with its strong brand recognition and marketing strategies, may benefit from this growth in the coming years.
See More
Analysts Predict Value Stocks Comeback in 2026
- Nike's Turnaround Strategy: Under new CEO Elliott Hill, Nike is implementing a 'Win Now' turnaround strategy that leverages its strong brand and innovation capabilities; despite overall sales stagnation, wholesale revenue grew by 8% in the latest quarter, indicating potential for diversified sales channels.
- North America Performance: In North America, Nike's revenue increased by 9%, while Europe saw a 3% growth after adjusting for foreign exchange impacts, suggesting that market demand in these regions is accelerating, which could further enhance overall performance in the future.
- Challenges in China: Although sales in China dropped by 17% year-over-year, negatively impacting financial results, Nike's strong brand recognition in the region and the Chinese government's push for sports development, aiming for a $1 trillion market by 2030, present long-term growth opportunities for the company.
- Future Earnings Expectations: Analysts predict that Nike's earnings per share will reach $2.47 for fiscal 2027, a significant increase from $1.75 for fiscal 2026; despite the current stock price being around $60 with a price-to-earnings ratio of about 25, the potential for margin recovery and sales growth makes Nike's value proposition noteworthy.
See More
China's Gen Z Embraces Counterfeits, Leaving Luxury Brands Disappointed in Their Investment.
- Changing Consumer Landscape: The traditional Chinese luxury consumer, known for their brand obsession, is fading away.
- Emergence of a New Generation: A new group of savvy shoppers is rising, valuing shopping intelligence and experience over mere brand loyalty.
See More
Nike Declares Quarterly Dividend of $0.41 per Share
- Quarterly Dividend Announcement: Nike has declared a quarterly dividend of $0.41 per share, consistent with previous payouts, indicating the company's stability and commitment to shareholder returns in the current economic climate.
- Dividend Yield: The forward yield of 2.6% reflects Nike's competitiveness in attracting investors, particularly amid increasing market volatility, showcasing its ability to provide consistent returns.
- Payment Schedule: The dividend is payable on April 1, with a record date of March 2 and an ex-dividend date also on March 2, ensuring shareholders receive their returns promptly and bolstering investor confidence.
- Market Reaction Outlook: While Nike's dividend policy remains stable, concerns about future growth persist, especially as the company faces challenges with the Converse brand's growth struggles, which may impact long-term investor confidence.
See More
NIKE Declares Quarterly Cash Dividend of $0.41
- Quarterly Cash Dividend: NIKE's Board of Directors has declared a cash dividend of $0.41 per share, payable on April 1, 2026, to shareholders of record as of March 2, 2026, demonstrating the company's ongoing profitability and commitment to shareholder returns.
- Shareholder Return Strategy: This dividend reflects NIKE's strong performance in maintaining stable cash flow and profitability, aimed at boosting investor confidence and attracting more long-term investors, thereby reinforcing its market position.
- Company Background: Headquartered near Beaverton, Oregon, NIKE is the world's leading designer, marketer, and distributor of athletic footwear, apparel, and accessories, with its wholly-owned subsidiary Converse expanding its market reach further.
- Information Transparency: NIKE enhances communication with investors by providing financial information and earnings releases on its official website, ensuring transparency and improving brand image.
See More
Analysts Predict Shift to Value Stocks in 2026
- Turnaround Strategy: Nike replaced CEO John Donahue with Elliott Hill in 2024, who is implementing the 'Win Now' strategy that leverages the brand's strength and innovation capabilities to reverse the performance decline, although overall sales growth remains sluggish and flat.
- Wholesale Channel Growth: The company's wholesale revenue improved by 8% in the most recent quarter, yet gross margin contracted by 3 percentage points due to tariff impacts, indicating that efforts to diversify sales channels are gradually bearing fruit.
- North America and Europe Markets: North America saw a 9% revenue increase, while Europe grew by 3% after adjusting for foreign exchange effects, suggesting that Nike's growth momentum in these regions is accelerating, despite a 17% year-over-year sales decline in China.
- Future Outlook: Analysts forecast Nike's earnings per share to reach $2.47 for fiscal 2027, a significant increase from $1.75 for fiscal 2026, and although the current stock price is around $60 with a price-to-earnings ratio of about 25, Nike is expected to achieve a strong rebound in revenue and profitability in the long term.
See More
Nike's Turnaround: Opportunities and Challenges
- Turnaround Strategy: Nike replaced CEO John Donahoe with Elliott Hill in 2024, who is implementing the 'Win Now' strategy that leverages the brand's strength and innovation to expand sales channels through renewed wholesale agreements, aiming to drive revenue growth.
- Sales Growth Challenges: Despite an 8% increase in wholesale revenue last quarter, overall sales growth remained flat on a currency-neutral basis, highlighting the challenges Nike faces in market recovery, particularly with a 17% year-over-year decline in sales in China.
- Future Outlook: Analysts predict a significant rebound in Nike's earnings per share, forecasting $2.47 for fiscal 2027, up from $1.75 in fiscal 2026, indicating potential profitability recovery as the company overcomes the impact of Trump tariffs.
- Market Opportunities: The Chinese market presents substantial potential, with government plans to expand the sports industry to a $1 trillion market by 2030, and Nike, with its strong brand recognition and marketing strategies, may benefit from this growth in the coming years.
See More
Analysts Predict Value Stocks Comeback in 2026
- Nike's Turnaround Strategy: Under new CEO Elliott Hill, Nike is implementing a 'Win Now' turnaround strategy that leverages its strong brand and innovation capabilities; despite overall sales stagnation, wholesale revenue grew by 8% in the latest quarter, indicating potential for diversified sales channels.
- North America Performance: In North America, Nike's revenue increased by 9%, while Europe saw a 3% growth after adjusting for foreign exchange impacts, suggesting that market demand in these regions is accelerating, which could further enhance overall performance in the future.
- Challenges in China: Although sales in China dropped by 17% year-over-year, negatively impacting financial results, Nike's strong brand recognition in the region and the Chinese government's push for sports development, aiming for a $1 trillion market by 2030, present long-term growth opportunities for the company.
- Future Earnings Expectations: Analysts predict that Nike's earnings per share will reach $2.47 for fiscal 2027, a significant increase from $1.75 for fiscal 2026; despite the current stock price being around $60 with a price-to-earnings ratio of about 25, the potential for margin recovery and sales growth makes Nike's value proposition noteworthy.
See More
China's Gen Z Embraces Counterfeits, Leaving Luxury Brands Disappointed in Their Investment.
- Changing Consumer Landscape: The traditional Chinese luxury consumer, known for their brand obsession, is fading away.
- Emergence of a New Generation: A new group of savvy shoppers is rising, valuing shopping intelligence and experience over mere brand loyalty.
See More
Nike Declares Quarterly Dividend of $0.41 per Share
- Quarterly Dividend Announcement: Nike has declared a quarterly dividend of $0.41 per share, consistent with previous payouts, indicating the company's stability and commitment to shareholder returns in the current economic climate.
- Dividend Yield: The forward yield of 2.6% reflects Nike's competitiveness in attracting investors, particularly amid increasing market volatility, showcasing its ability to provide consistent returns.
- Payment Schedule: The dividend is payable on April 1, with a record date of March 2 and an ex-dividend date also on March 2, ensuring shareholders receive their returns promptly and bolstering investor confidence.
- Market Reaction Outlook: While Nike's dividend policy remains stable, concerns about future growth persist, especially as the company faces challenges with the Converse brand's growth struggles, which may impact long-term investor confidence.
See More
NIKE Declares Quarterly Cash Dividend of $0.41
- Quarterly Cash Dividend: NIKE's Board of Directors has declared a cash dividend of $0.41 per share, payable on April 1, 2026, to shareholders of record as of March 2, 2026, demonstrating the company's ongoing profitability and commitment to shareholder returns.
- Shareholder Return Strategy: This dividend reflects NIKE's strong performance in maintaining stable cash flow and profitability, aimed at boosting investor confidence and attracting more long-term investors, thereby reinforcing its market position.
- Company Background: Headquartered near Beaverton, Oregon, NIKE is the world's leading designer, marketer, and distributor of athletic footwear, apparel, and accessories, with its wholly-owned subsidiary Converse expanding its market reach further.
- Information Transparency: NIKE enhances communication with investors by providing financial information and earnings releases on its official website, ensuring transparency and improving brand image.
See More
