Nike stock trades around $45, 16% below where it did a decade ago and 44% below its 52-week high, as the company prepares to report fiscal fourth-quarter results on June 30. North America revenue rose 3% to about $5 billion in the fiscal third quarter, with sell-through growing across all channels in February for the first time in two years, while Greater China revenue fell 7% to about $1.6 billion and management guided for a roughly 20% drop in the current quarter. Gross margin slipped to 40.2% from about 41.5% a year earlier, pressured by higher U.S. tariffs that cost roughly 3 percentage points, but management expects margins to start expanding again in the second quarter of fiscal 2027. CEO Elliott Hill, who returned in late 2024, is leading a turnaround plan called Win Now actions, with longer-term targets expected at an investor day this fall. The stock's price-to-earnings ratio remains about 30 as net income dropped 35% in the fiscal third quarter, leaving the valuation dependent on a profit recovery.
Nike IncGreater China revenue fell 7% and management guided for a roughly 20% drop in the current quarter, indicating weak demand in a key region.