<p><em>Note: Access all prior Nike (NKE) research <a href="https://thescienceofhitting.com/t/nke">on the TSOH website</a>.</em></p><p><span>From “</span><strong><a href="https://thescienceofhitting.com/p/nike-fighting-back"><span>Nike: Fighting Back</span></a></strong><span>” (April 2026):</span></p><p><em><span>“While the near term picture is dominated by a barrage of financial pressures – the Classics pullback, China struggles, tariffs, etc. – I think these insiders have bought Nike shares because they believe the long-term trajectory for the business and the brand is much improved given the changes that have been implemented under Elliott Hill’s leadership over the past 18 months…”</span></em></p><p><span>From a financial perspective, </span><a href="https://s1.q4cdn.com/806093406/files/doc_financials/2026/q4/Q4-FY26_Press-Release_FINAL.pdf"><span>FY26</span></a><span> was a terrible year for Nike.</span></p><p><span>Revenues of ~$46.4 billion were nearly $5 billion lower than three years earlier, adjusted EBIT margins were down by half compared to the trailing ten-year average, and adjusted EPS fell to levels first eclipsed in FY15.</span></p><div class="captioned-image-container"><figure><a class="image-link image2 is-viewable-img" href="https://substackcdn.com/image/fetch/$s_!ub6x!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Ff688c2ff-4bcd-4b58-8bf2-1efeb1665a98_915x666.jpeg" target="_blank"><div class="image2-inset"><source type="image/webp" /><img alt="" class="sizing-normal" height="666" src="https://substackcdn.com/image/fetch/$s_!ub6x!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Ff688c2ff-4bcd-4b58-8bf2-1efeb1665a98_915x666.jpeg" width="915" /><div class="image-link-expand"><div class="pencraft pc-display-flex pc-gap-8 pc-reset"><button class="pencraft pc-reset pencraft icon-container restack-image" tabindex="0" type="button"><svg fill="none" height="20" stroke="var(--color-fg-primary)" stroke-linecap="round" stroke-linejoin="round" stroke-width="1.5" viewBox="0 0 20 20" width="20" xmlns="http://www.w3.org/2000/svg"><g><title></title><path d="M2.53001 7.81595C3.49179 4.73911 6.43281 2.5 9.91173 2.5C13.1684 2.5 15.9537 4.46214 17.0852 7.23684L17.6179 8.67647M17.6179 8.67647L18.5002 4.26471M17.6179 8.67647L13.6473 6.91176M17.4995 12.1841C16.5378 15.2609 13.5967 17.5 10.1178 17.5C6.86118 17.5 4.07589 15.5379 2.94432 12.7632L2.41165 11.3235M2.41165 11.3235L1.5293 15.7353M2.41165 11.3235L6.38224 13.0882"></path></g></svg></button><button class="pencraft pc-reset pencraft icon-container view-image" tabindex="0" type="button"><svg class="lucide lucide-maximize2 lucide-maximize-2" fill="none" height="20" stroke="currentColor" stroke-linecap="round" stroke-linejoin="round" stroke-width="2" viewBox="0 0 24 24" width="20" xmlns="http://www.w3.org/2000/svg"><polyline points="15 3 21 3 21 9"></polyline><polyline points="9 21 3 21 3 15"></polyline><line x1="21" x2="14" y1="3" y2="10"></line><line x1="3" x2="10" y1="21" y2="14"></line></svg></button></div></div></div></a></figure></div><p><span>But </span><em><span>today’s</span></em><span> results are largely reflective of </span><em><span>yesterday’s</span></em><span> mistakes.</span></p><p>I believe that Nike is heading in the right direction under CEO Elliott Hill’s leadership, but it has required meaningful change. One notable development has been the <strong>>$4 billion</strong> revenue reduction from <a href="https://youtu.be/kpnBnrq8Q7Q?si=KaXMa5kYQRZ4y3dV&t=46">their classics footwear franchises</a>, with roughly half of that impact realized in FY26; this resulted in minimal Footwear revenue growth for Nike over the past five years, a product category that historically drove mid-to-high single digit per annum (%) gains.</p><div class="captioned-image-container"><figure><a class="image-link image2 is-viewable-img" href="https://substackcdn.com/image/fetch/$s_!Ouha!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fc22f4691-ab5c-4600-9685-ec379b3225f4_915x667.jpeg" target="_blank"><div class="image2-inset"><source type="image/webp" /><img alt="" class="sizing-normal" height="667" src="https://substackcdn.com/image/fetch/$s_!Ouha!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fc22f4691-ab5c-4600-9685-ec379b3225f4_915x667.jpeg" width="915" /><div class="image-link-expand"><div class="pencraft pc-display-flex pc-gap-8 pc-reset"><button class="pencraft pc-reset pencraft icon-container restack-image" tabindex="0" type="button"><svg fill="none" height="20" stroke="var(--color-fg-primary)" stroke-linecap="round" stroke-linejoin="round" stroke-width="1.5" viewBox="0 0 20 20" width="20" xmlns="http://www.w3.org/2000/svg"><g><title></title><path d="M2.53001 7.81595C3.49179 4.73911 6.43281 2.5 9.91173 2.5C13.1684 2.5 15.9537 4.46214 17.0852 7.23684L17.6179 8.67647M17.6179 8.67647L18.5002 4.26471M17.6179 8.67647L13.6473 6.91176M17.4995 12.1841C16.5378 15.2609 13.5967 17.5 10.1178 17.5C6.86118 17.5 4.07589 15.5379 2.94432 12.7632L2.41165 11.3235M2.41165 11.3235L1.5293 15.7353M2.41165 11.3235L6.38224 13.0882"></path></g></svg></button><button class="pencraft pc-reset pencraft icon-container view-image" tabindex="0" type="button"><svg class="lucide lucide-maximize2 lucide-maximize-2" fill="none" height="20" stroke="currentColor" stroke-linecap="round" stroke-linejoin="round" stroke-width="2" viewBox="0 0 24 24" width="20" xmlns="http://www.w3.org/2000/svg"><polyline points="15 3 21 3 21 9"></polyline><polyline points="9 21 3 21 3 15"></polyline><line x1="21" x2="14" y1="3" y2="10"></line><line x1="3" x2="10" y1="21" y2="14"></line></svg></button></div></div></div></a></figure></div>
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