Nike Embarks on a Decade-Long Rebuild Strategy
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 01 2026
0mins
Source: Fool
- Disappointing Earnings Report: Nike reported a full-year diluted earnings per share of $2.10, reflecting only a 3% decline year-over-year, but heavily reliant on a $986 million tariff refund, indicating vulnerability in profitability, with the CEO admitting that sportswear remains lagging, particularly in Greater China where sales have notably declined.
- Negative Market Reaction: Following the earnings report, Nike's stock price quickly dipped 10% before stabilizing at around a 3% decline ahead of market open, reflecting investor concerns regarding the company's future growth potential, especially in the underperforming sportswear and Jordan streetwear segments.
- Challenges in Growth Areas: Despite achieving five consecutive quarters of double-digit growth in its running business, adding approximately $1 billion in revenue, the CEO emphasized that overall performance still falls short of expectations, particularly with ongoing sales declines in Greater China impacting the company's strategic positioning.
- Uncertain Future Outlook: Management did not provide specific guidance for fiscal 2027, anticipating further revenue declines in the first half, which raises doubts among investors about Nike's long-term development strategy, especially amid intensifying global market competition.
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Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 386.740
Low
500.00
Averages
631.36
High
678.00
Current: 386.740
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company. The Company develops and supports software, services, devices, and solutions. The Company’s segments include Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services. This segment primarily comprises: Office Commercial, Office Consumer, LinkedIn, and Dynamics business solutions. The Intelligent Cloud segment consists of server products and cloud services, including Azure and other cloud services, SQL Server, Windows Server, Visual Studio, System Center, and related Client Access Licenses (CALs), and Nuance and GitHub; and Enterprise Services, including enterprise support services, industry solutions and Nuance professional services. The More Personal Computing segment primarily comprises Windows, Devices, Gaming, and search and news advertising.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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