Nike's Market Share Continues to Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
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Source: Newsfilter
- Market Share Decline: According to Euromonitor International, Nike's global sports footwear market share fell by 3 percentage points to 22.9% in 2025, marking the third consecutive year of decline, indicating the brand's weakening position amid fierce competition.
- Intensifying Competition: Adidas increased its market share from 11.7% in 2024 to 12.2%, and recently, a runner wearing Adidas' new ultra-light shoes broke the two-hour marathon barrier, further intensifying the pressure on Nike's innovation efforts.
- Severe Inventory Issues: Nike's inventory as a share of revenue remains at 16.1%, flat compared to when Hill took over, and although the company is clearing obsolete stock through discounts and returns, profit recovery has been slow, with deeper average markdowns putting pressure on margins.
- Investor Confidence Wanes: Despite Hill's promises to restore Nike's market dominance, investor patience is wearing thin, as evidenced by Nike's stock closing at $43.09 on Monday, the lowest since 2014, reflecting growing concerns about the company's future.
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Analyst Views on NKE
Wall Street analysts forecast NKE stock price to rise
21 Analyst Rating
14 Buy
7 Hold
0 Sell
Moderate Buy
Current: 43.090
Low
62.00
Averages
76.11
High
110.00
Current: 43.090
Low
62.00
Averages
76.11
High
110.00
About NKE
NIKE, Inc. is engaged in the designing, marketing and distributing of athletic footwear, apparel, equipment and accessories and services for sports and fitness activities. The Company's operating segments include North America; Europe, Middle East & Africa (EMEA); Greater China; and Asia Pacific & Latin America (APLA). It sells a line of equipment and accessories under the NIKE Brand name, including bags, socks, sport balls, eyewear, timepieces, digital devices, bats, gloves, protective equipment and other equipment designed for sports activities. It also designs products specifically for the Jordan Brand and Converse. The Jordan Brand designs, distributes and licenses athletic and casual footwear, apparel and accessories predominantly focused on basketball performance and culture using the Jumpman trademark. The Company also designs, distributes and licenses casual sneakers, apparel and accessories under the Chuck Taylor, All Star, One Star, Star Chevron and Jack Purcell trademarks.
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.
Nike's Earnings Disappoint, Cuts 1,400 Jobs Amid Turnaround Struggles
- Disappointing Earnings: Nike's fiscal third-quarter revenue remained flat at $11.3 billion, down 3% on a currency-neutral basis, slightly exceeding estimates of $11.23 billion, while earnings per share fell from $0.54 to $0.35, indicating a significant decline in profitability.
- Job Cuts Announced: The company plans to cut 1,400 jobs, primarily in its technology department, aimed at making structural changes to address ongoing business challenges, which may impact employee morale and the company's innovation capabilities.
- Market Reaction: Despite a broader market recovery, Nike's stock fell 16% in April and is down 75% from its all-time high, with analysts widely downgrading the stock and lowering price targets, reflecting a pessimistic outlook on its recovery prospects.
- Innovation Setbacks: The departure of Nike's innovation chief Tony Bignell after less than a year raises further concerns about the company's turnaround ability, although a new collaboration with Kobe sold out quickly, indicating that the brand still possesses some market appeal.
See More
Nike's Market Share Continues to Decline
- Market Share Decline: According to Euromonitor International, Nike's global sports footwear market share fell by 3 percentage points to 22.9% in 2025, marking the third consecutive year of decline, indicating the brand's weakening position amid fierce competition.
- Intensifying Competition: Adidas increased its market share from 11.7% in 2024 to 12.2%, and recently, a runner wearing Adidas' new ultra-light shoes broke the two-hour marathon barrier, further intensifying the pressure on Nike's innovation efforts.
- Severe Inventory Issues: Nike's inventory as a share of revenue remains at 16.1%, flat compared to when Hill took over, and although the company is clearing obsolete stock through discounts and returns, profit recovery has been slow, with deeper average markdowns putting pressure on margins.
- Investor Confidence Wanes: Despite Hill's promises to restore Nike's market dominance, investor patience is wearing thin, as evidenced by Nike's stock closing at $43.09 on Monday, the lowest since 2014, reflecting growing concerns about the company's future.
See More
Nike Announces Cash Dividend Plan for 2026
- Stable Dividend Policy: Nike's board approved a cash dividend of $0.41 per share, scheduled for July 1, 2026, demonstrating the company's commitment to providing stable returns to shareholders despite uncertain economic conditions.
- Cash Reserve Status: As of February 28, Nike held $6.66 billion in cash and cash equivalents, which provides financial stability and flexibility in a highly competitive market.
- Restructuring Strategy Implementation: Nike is executing its 'Win Now' strategy by consolidating tech teams in Oregon and India and adjusting supply chains to enhance operational efficiency in response to uneven market demand.
- Market Competitive Pressure: Despite facing pressure from rivals like Deckers Outdoor and On Holding, with expected slight sales declines, the company aims to leverage events like the 2026 FIFA World Cup to drive revenue growth.
See More
Nike Declares Quarterly Dividend of $0.41 per Share
- Quarterly Dividend Announcement: Nike has declared a quarterly dividend of $0.41 per share, consistent with previous payouts, indicating the company's stable cash flow and profitability, which is likely to attract more investor interest in its stock.
- Dividend Yield: The current dividend yield stands at 3.81%, which is attractive in the current market environment, although concerns about a potential future dividend cut may prompt investors to assess risks carefully.
- Shareholder Timeline: The dividend will be payable on July 1, with a record date of June 1 and an ex-dividend date also on June 1, ensuring shareholders receive their earnings promptly and bolstering shareholder confidence.
- Market Reaction Expectations: Nike's dividend policy may influence its stock price performance, particularly as investor expectations regarding the company's future growth potential evolve, with stable dividend payments likely to enhance demand for its shares.
See More
Dividend Comparison: Nike vs. Verizon
- Nike's Dividend Struggles: Nike raised its quarterly dividend by 3% to $0.41 in November, marking its 24th consecutive increase; however, its revenue for Q3 2026 was flat at $11.3 billion, indicating weak business growth that may jeopardize future dividend sustainability.
- Profitability Decline: Nike's earnings per share plummeted 35% year-over-year to $0.35, with gross margin contracting by 130 basis points to 40.2%, primarily due to rising tariffs in North America, which poses significant pressure on profitability and could threaten future dividend payments.
- Verizon's Strong Dividend Stability: Verizon boasts a dividend yield of nearly 5.9%, reporting Q1 2026 revenue of $34.4 billion, up 2.9% year-over-year, and adjusted earnings per share rising 7.6% to $1.28, reflecting a positive turnaround in its business.
- Robust Free Cash Flow: Verizon's free cash flow increased by 4% to $3.8 billion in Q1 2026, with expectations of over $21.5 billion for the year, comfortably covering its annual dividend payout of approximately $11.8 billion, indicating strong dividend sustainability and growth potential.
See More
Dividend Comparison: Nike vs. Verizon
- Nike's Performance Decline: Nike's latest earnings report revealed a 35% year-over-year drop in earnings per share for Q3 2026, with gross margin contracting by 130 basis points to 40.2%, reflecting pressures from higher tariffs in North America, leading to shares hovering near a 10-year low and diminishing investor confidence in future profitability.
- Verizon's Strong Growth: Verizon reported Q1 2026 revenue of $34.4 billion, up 2.9% year-over-year, with adjusted earnings per share rising 7.6% to $1.28 and EBITDA hitting a record $13.4 billion, indicating significant progress in its turnaround strategy and attracting more investor interest.
- Dividend Payment Capability Comparison: Nike is projected to pay approximately $2.4 billion in dividends over the next 12 months, but its free cash flow is tracking below this level, raising concerns about the sustainability of its dividend; in contrast, Verizon's free cash flow is expected to reach $21.5 billion, comfortably covering its $11.8 billion dividend payout, indicating stronger financial health.
- Investor Confidence Disparity: While Nike's dividend yield stands at about 3.7%, its poor performance has weakened investor confidence in future growth; conversely, Verizon's yield is near 5.9%, and the company has raised its dividend for 19 consecutive years, showcasing the stability and attractiveness of its dividend, potentially making it a better long-term investment choice.
See More
Nike's Earnings Disappoint, Cuts 1,400 Jobs Amid Turnaround Struggles
- Disappointing Earnings: Nike's fiscal third-quarter revenue remained flat at $11.3 billion, down 3% on a currency-neutral basis, slightly exceeding estimates of $11.23 billion, while earnings per share fell from $0.54 to $0.35, indicating a significant decline in profitability.
- Job Cuts Announced: The company plans to cut 1,400 jobs, primarily in its technology department, aimed at making structural changes to address ongoing business challenges, which may impact employee morale and the company's innovation capabilities.
- Market Reaction: Despite a broader market recovery, Nike's stock fell 16% in April and is down 75% from its all-time high, with analysts widely downgrading the stock and lowering price targets, reflecting a pessimistic outlook on its recovery prospects.
- Innovation Setbacks: The departure of Nike's innovation chief Tony Bignell after less than a year raises further concerns about the company's turnaround ability, although a new collaboration with Kobe sold out quickly, indicating that the brand still possesses some market appeal.
See More
Nike's Market Share Continues to Decline
- Market Share Decline: According to Euromonitor International, Nike's global sports footwear market share fell by 3 percentage points to 22.9% in 2025, marking the third consecutive year of decline, indicating the brand's weakening position amid fierce competition.
- Intensifying Competition: Adidas increased its market share from 11.7% in 2024 to 12.2%, and recently, a runner wearing Adidas' new ultra-light shoes broke the two-hour marathon barrier, further intensifying the pressure on Nike's innovation efforts.
- Severe Inventory Issues: Nike's inventory as a share of revenue remains at 16.1%, flat compared to when Hill took over, and although the company is clearing obsolete stock through discounts and returns, profit recovery has been slow, with deeper average markdowns putting pressure on margins.
- Investor Confidence Wanes: Despite Hill's promises to restore Nike's market dominance, investor patience is wearing thin, as evidenced by Nike's stock closing at $43.09 on Monday, the lowest since 2014, reflecting growing concerns about the company's future.
See More
Nike Announces Cash Dividend Plan for 2026
- Stable Dividend Policy: Nike's board approved a cash dividend of $0.41 per share, scheduled for July 1, 2026, demonstrating the company's commitment to providing stable returns to shareholders despite uncertain economic conditions.
- Cash Reserve Status: As of February 28, Nike held $6.66 billion in cash and cash equivalents, which provides financial stability and flexibility in a highly competitive market.
- Restructuring Strategy Implementation: Nike is executing its 'Win Now' strategy by consolidating tech teams in Oregon and India and adjusting supply chains to enhance operational efficiency in response to uneven market demand.
- Market Competitive Pressure: Despite facing pressure from rivals like Deckers Outdoor and On Holding, with expected slight sales declines, the company aims to leverage events like the 2026 FIFA World Cup to drive revenue growth.
See More
Nike Declares Quarterly Dividend of $0.41 per Share
- Quarterly Dividend Announcement: Nike has declared a quarterly dividend of $0.41 per share, consistent with previous payouts, indicating the company's stable cash flow and profitability, which is likely to attract more investor interest in its stock.
- Dividend Yield: The current dividend yield stands at 3.81%, which is attractive in the current market environment, although concerns about a potential future dividend cut may prompt investors to assess risks carefully.
- Shareholder Timeline: The dividend will be payable on July 1, with a record date of June 1 and an ex-dividend date also on June 1, ensuring shareholders receive their earnings promptly and bolstering shareholder confidence.
- Market Reaction Expectations: Nike's dividend policy may influence its stock price performance, particularly as investor expectations regarding the company's future growth potential evolve, with stable dividend payments likely to enhance demand for its shares.
See More
Dividend Comparison: Nike vs. Verizon
- Nike's Dividend Struggles: Nike raised its quarterly dividend by 3% to $0.41 in November, marking its 24th consecutive increase; however, its revenue for Q3 2026 was flat at $11.3 billion, indicating weak business growth that may jeopardize future dividend sustainability.
- Profitability Decline: Nike's earnings per share plummeted 35% year-over-year to $0.35, with gross margin contracting by 130 basis points to 40.2%, primarily due to rising tariffs in North America, which poses significant pressure on profitability and could threaten future dividend payments.
- Verizon's Strong Dividend Stability: Verizon boasts a dividend yield of nearly 5.9%, reporting Q1 2026 revenue of $34.4 billion, up 2.9% year-over-year, and adjusted earnings per share rising 7.6% to $1.28, reflecting a positive turnaround in its business.
- Robust Free Cash Flow: Verizon's free cash flow increased by 4% to $3.8 billion in Q1 2026, with expectations of over $21.5 billion for the year, comfortably covering its annual dividend payout of approximately $11.8 billion, indicating strong dividend sustainability and growth potential.
See More
Dividend Comparison: Nike vs. Verizon
- Nike's Performance Decline: Nike's latest earnings report revealed a 35% year-over-year drop in earnings per share for Q3 2026, with gross margin contracting by 130 basis points to 40.2%, reflecting pressures from higher tariffs in North America, leading to shares hovering near a 10-year low and diminishing investor confidence in future profitability.
- Verizon's Strong Growth: Verizon reported Q1 2026 revenue of $34.4 billion, up 2.9% year-over-year, with adjusted earnings per share rising 7.6% to $1.28 and EBITDA hitting a record $13.4 billion, indicating significant progress in its turnaround strategy and attracting more investor interest.
- Dividend Payment Capability Comparison: Nike is projected to pay approximately $2.4 billion in dividends over the next 12 months, but its free cash flow is tracking below this level, raising concerns about the sustainability of its dividend; in contrast, Verizon's free cash flow is expected to reach $21.5 billion, comfortably covering its $11.8 billion dividend payout, indicating stronger financial health.
- Investor Confidence Disparity: While Nike's dividend yield stands at about 3.7%, its poor performance has weakened investor confidence in future growth; conversely, Verizon's yield is near 5.9%, and the company has raised its dividend for 19 consecutive years, showcasing the stability and attractiveness of its dividend, potentially making it a better long-term investment choice.
See More
