Nike poised for 2026 reboundWe keep coming back to the line attributed to Nike's CEO Phil Knight, “The cowards never started and the weak died along the way. That leaves us.”
Nike shares have slumped over the past 12 months, down roughly 17 to 18 percent. The weakness reflects a tough consumer stretch and pressure across global retail channels.
But beneath the surface, the business is stabilising. Fiscal 2025 revenue came in around $46 billion, down about 10 percent from the prior year. Net income held near $3.2 billion.
Gross margins were close to 42 percent and operating margin hovered near 8 percent. These are not the numbers of a brand in structural decline. They show a business absorbing shocks while keeping its core intact.
The most recent quarter delivered revenue of roughly $11.7 billion, up a touch year-on-year, with net income around $700 million. The uptick is small but important. It tells me the bleeding is slowing. Inventory has normalised, wholesale orders have improved, and margin traction is beginning to reappear.
Now look at the macro backdrop. If US rates fall next year under easing inflation pressure, the consumer should finally exhale. That shifts momentum back toward discretionary spending. Nike captures that swing better than most. Its global footprint, deep wholesale relationships and disciplined direct to consumer strategy give it leverage when demand cycles turn.
Nike has been hit, no doubt. But it remains a unique asset in global apparel. Product cadence is improving. Cost discipline is tighter. The brand still owns mindshare.
Nike has gone through the fire. Many competitors wilted. Nike endured. With the share price depressed and fundamentals firming, the setup looks compelling for a rebound.
The forecasts provided herein are intended for informational purposes only and should not be construed as guarantees of future performance. This is an example only to enhance a consumer's understanding of the strategy being described above and is not to be taken as Blueberry Markets providing personal advice.
