Nike shares slip 15%
Nike’s stock fell about 15% after its quarterly report despite an earnings beat, as investors remain skeptical about the company’s turnaround prospects. (gurufocus.com). Reports note the company is shifting strategy across wholesale, product and China market focus while insiders bought shares during the weakness. (gurufocus.com)
Nike shares fell more than 15% on April 1 after the company said its turnaround will take longer and current-quarter sales will drop. (cnbc.com) Nike reported fiscal third-quarter revenue of $11.3 billion for the period ended Feb. 28, 2026, with diluted earnings per share of $0.35. Revenue was flat on a reported basis, wholesale sales rose to $6.5 billion, and Nike Direct sales fell to $4.5 billion. (investors.nike.com) The problem was the outlook. Chief Financial Officer Matthew Friend said fourth-quarter sales are expected to fall 2% to 4%, while analysts had been looking for growth, and he said Greater China sales are expected to drop about 20% in the quarter. (money.usnews.com) Chief Executive Elliott Hill said Nike is pulling back promotions, pushing more new product and refocusing on core categories such as running. He also said the turnaround is taking longer than he expected. (money.usnews.com) China has become the clearest pressure point. Nike said third-quarter sales in Greater China fell 10%, and executives told investors the cleanup of inventory and the shift back toward full-price selling there will keep weighing on results through fiscal 2027. (money.usnews.com; cnbc.com) The company is also trying to rebalance how it sells. Nike’s third-quarter release showed wholesale growing while its direct business declined, a reversal from the strategy Nike pushed in earlier years when it emphasized selling more through its own stores and apps. (investors.nike.com) Margins remain under pressure as Nike clears older inventory and faces higher costs. Gross margin fell 130 basis points to 40.2% in the quarter, and Friend said the company could also face volatility from Middle East disruption, oil prices and tariffs. (investors.nike.com; cnbc.com) Investors have heard versions of this reset before. Morningstar analyst David Swartz told Reuters that Nike has been talking about clearing inventory since the fourth quarter of the last fiscal year, and investors are asking why the process is still dragging on. (money.usnews.com) There was one show of confidence after the selloff. Director Robert Holmes Swan bought 11,781 shares on April 7 at about $42.44 each, a purchase worth roughly $500,000, according to a filing cited by InsiderTrades. (insidertrades.com) Nike’s next test is whether North America growth and newer products can offset the China slump fast enough to steady sales before fiscal 2027. For now, the stock drop showed investors want faster proof than an earnings beat. (cnbc.com; investors.nike.com)
