Ahead of Nike’s Oct. 1 earnings report, The Motley Fool says long-term investors could consider a small position and add only as the turnaround proves itself. Shares are 77% below their late-2021 peak; China revenue fell 12% last quarter.
Nike shares were also down about 44% in 2026 as of the article’s writing. The company is rebuilding wholesale relationships, cutting excess inventory and focusing on key sports, locations and cities. It has about $9 billion in cash and short-term investments and pays a $0.41 quarterly dividend. Management expects gross margin to begin expanding in fiscal 2027’s second quarter; Nike expects Chinese brands’ growing appeal among consumers in China to continue.
