Nike Is Down 77% From Its Peak. Should You Buy Before It Reports Earnings on Oct. 1?
Nike has struggled to rebuild its brand, and a turnaround won't be quick or easy.
Overview
Nike (NYSE: NKE) used to be a blue chip staple, but is now a sore spot in portfolios. Shares of Nike have fallen 77% from their peak in late 2021, and are down about 44% in 2026 as of this writing. The company is mounting a turnaround, but does that mean investors should buy the stock now before earnings on Oct. 1 or remain on the bench this time around?
The athletic apparel giant's biggest challenge is China. Revenue in the country fell 12% in the last quarter as Chinese-based brands gained favor among consumers there. Nike expects this trend to continue as well.
Details
Nike is combating this by rebuilding its wholesale relationships, reducing excess inventory, and focusing on its key sports, locations, and specific cities. The athletic retailer's balance sheet remains strong, with about $9 billion in cash and short-term investments. Nike also still pays a quarterly dividend of $0.41 per share.
Source
Originally published at www.fool.com.