NIKE, Inc. Class B (NKE)

In the past six months, NIKE's stock has experienced a notable decline. As of January 5, 2026, NKE shares fell 17.3% over the preceding six months, underperforming the broader industry. CEO Elliott Hill initiated a "Win Now" strategy focused on product innovation, but analysts noted the turnaround is taking longer than expected. For the second quarter of fiscal year 2026, Nike reported a modest 1% year-over-year revenue increase to $12.4 billion, surpassing analyst expectations, but forecasted weaker holiday shopping months. Sales in the Greater China region saw a 17% decline. New U.S. tariff regimes are projected to impose an additional $1.5 billion in annual costs on Nike. Several financial institutions cut their price targets for Nike, and Needham analysts downgraded NKE to "hold" in January 2026. CEO Elliott Hill and Apple CEO Tim Cook made significant purchases of Nike shares, signaling insider confidence.

Demand for NIKE's products exhibits seasonal patterns. Search interest for "Nike sneakers" typically peaks in November, March, and December. "Nike running shoes" see their highest search interest in August. "Nike sportswear" generally peaks in November and December but experiences a seasonal decline during the summer months. The company often benefits from a "holiday season bump" in demand. Historically, sales tend to decrease in January and February following a December peak. Nike has shown a historically strong period between September 23 and December 22. Implied volatility for NKE stock tends to rise most in December and decline to its lowest levels in July.

NIKE, Inc. is a multinational corporation that designs, develops, manufactures, markets, and sells athletic footwear, apparel, equipment, accessories, and services. It is the world's largest supplier of athletic shoes and apparel, operating within the apparel, accessories, sports equipment, and retailing sectors. NIKE markets its products under its own brand, including lines like Nike Golf, Nike Pro, and Air Max, as well as under the Air Jordan brand and its Converse subsidiary.

NIKE, Inc. operates globally, serving consumers in over 190 countries. The company's primary geographic operating segments include North America; Europe, Middle East & Africa (EMEA); Greater China; and Asia Pacific & Latin America (APLA). Regional operations for the Americas, Asia-Pacific, and the United States are managed from Nike's World Headquarters in Beaverton, Oregon.

In the past year, Nike's brand reputation has faced several challenges. A new line of sneakers was criticized for its environmental impact, leading to public backlash. Nike faced criticism for using the phrase "Never again, until next year" in its London Marathon advertising. The company continued to face scrutiny over its supply chain relationship with Daewoo International, a firm accused of profiting from forced labor. Nike received criticism regarding its approach to women's sports and the transgender athlete debate. Nike was sued by Total90 LLC for trademark infringement. The company experienced an "innovation gap" where it reportedly prioritized digital logistics over product design.

NIKE, Inc. is primarily owned by institutional investors, who collectively hold approximately 64% to 68% of all shares. Major institutional owners include Vanguard Group Inc., BlackRock, Inc., and State Street Corp. Key individual owners include Phil Knight, co-founder, who is the largest individual shareholder, Travis Knight, Phil Knight's son, Mark Parker, Executive Chairman, and John Donahoe II, current CEO. The Knight family maintains effective control over Nike's board due to the structure of Class A shares.