Did Nike Just Find the Key to a Roaring Comeback?
The first thing Nike (NYSE: NKE) tells you on its investor relations page is that it's a growth company. Its recent results, however, say the opposite. Revenue at Nike was flat in its fiscal third quarter at $12.4 billion, and was up just 1% in the first three quarters of the year.
Nike is facing a number of challenges that have led to its growth stalling. It's losing market share, especially in running, to upstart competitors like On Holding and Deckers' Hoka brand. It also said it was pulling back its supply of styles like the Air Force 1 and Pegasus running shoes, a sign that it's leaned too hard on classic brands. It also continues to be impacted by parting ways with Kyrie Irving, one of its biggest basketball stars, over a year ago.
As a result of those challenges, Nike stock is down 20% over the past year even as the broad market has soared, and it's off nearly 50% from its pandemic-era peak. It's easy to see why Nike stock has fallen as the stock is still priced for growth. However, Nike is now shifting its strategy in order to rebuild business momentum. Here's how.
Source Fool.com
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