NIKE, Inc. NKE is trying to turn a narrower set of operating wins into a broader recovery. The problem is that the gains are still uneven.
Running, global football, training and North America are improving. Sportswear, Jordan Streetwear, NIKE Direct and Greater China continue to pressure demand, pricing and near-term visibility.
NIKE, Inc. Price, Consensus and EPS Surprise
NIKE, Inc. price-consensus-eps-surprise-chart | NIKE, Inc. Quote
NKE Recovery Is Split by Category
The clearest progress is coming from performance categories. Running has delivered five consecutive quarters of double-digit growth and added roughly $1 billion over that span. Performance product grew mid-single digits in fiscal 2026, with positive retail sales comparisons across running, training and global football in the fourth quarter.
Management expects growth to expand beyond running into training, basketball and ACG in fiscal 2027. Still, Sportswear and Jordan Streetwear remain weak. Sell-through is challenged, discounting is elevated and future order books are being affected.
NIKE Direct Still Drags on Growth
NIKE Direct remains one of the biggest gaps in the recovery. In the fourth quarter of fiscal 2026, NIKE Direct revenues fell 7% on a reported basis and 9% on a currency-neutral basis to $4.1 billion. NIKE Brand Digital declined 12%, while NIKE-owned stores were down 7%.
The weakness matters because Sportswear and Jordan Streetwear together represent about half of NIKE’s revenues. NIKE is reducing promotions, repositioning digital as a premium business and working to elevate 50% of its owned-store fleet by the end of fiscal 2027. That reset can help brand health, but it also slows the pace of revenue improvement.
NIKE, Inc. Revenue (TTM)
NIKE, Inc. revenue-ttm | NIKE, Inc. Quote
NKE Wholesale Rebound Offers Some Relief
Wholesale is providing a partial offset. Fourth-quarter fiscal 2026 wholesale revenues rose 4% on a reported basis and 1% on a currency-neutral basis to $6.6 billion, driven mainly by North America. In fiscal 2026, wholesale revenues increased 6% on a reported basis and 4% on a currency-neutral basis.
NIKE is rebuilding partner relationships through curated assortments, better in-store presentation and sport-led storytelling. DICK’S Sporting Goods Inc.’s DKS Foot Locker is an important marker in that process, as NIKE’s revenue growth and retail sales comparisons as the retailer turned positive for the first time in four years. adidas AG ADDYY, a major athletic footwear and apparel peer, remains a useful comparison point for investors watching whether NIKE can regain product momentum while protecting brand premium.
NIKE China Reset Clouds Near-Term Visibility
Greater China remains a major overhang. Fourth-quarter revenues in the region fell 12% on a reported basis and 17% on a currency-neutral basis to $1.3 billion. NIKE Direct declined 14%, including a 25% drop in NIKE Digital and a 9% decrease in NIKE stores, while wholesale declined 19%.
In fiscal 2026, Greater China revenues declined 11% on a reported basis and 13% on a currency-neutral basis to $5.85 billion. NIKE has seen digital full-price realization improve and inventory decline by double digits, but management expects near-term revenue trends in the region to remain in line with recent performance.
NKE Signals Point to Ongoing Caution
The bottom line is that NIKE’s recovery has real operational green shoots, but not enough broad-based strength yet. Performance categories and wholesale are improving, while Sportswear, Jordan Streetwear, direct channels and China continue to weigh on the pace of a cleaner rebound.
NKE currently carries a Zacks Rank #4 (Sell). The stock also has a Value Score of D, Growth Score of F, Momentum Score of F and VGM Score of F. Style Scores are designed to complement the Zacks Rank, with stronger grades generally pointing to more favorable value, growth or momentum characteristics.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For NIKE, those signals support a cautious stance. A weak Rank reflects pressure in earnings estimate trends, while weak Style Scores suggest limited support from valuation, growth and momentum factors. Until category strength spreads more widely across channels and geographies, the stock outlook remains tied to execution proof rather than early signs of improvement.
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This article originally published on Zacks Investment Research (zacks.com).