By Teresa Rivas

Nike stock was falling after it reported fiscal fourth-quarter results Tuesday.

Nike earned 20 cents a share, excluding a 52 cent benefit related to the expected recovery of import tariffs, on revenue that fell 1.1% from the year-ago period to $10.97 billion. Consensus called for Nike to earn 12 cents a share on revenue of $10.85 billion

North America was once again a bright spot, but overall revenue for the flagship Nike brand was flat, and down 3% on a constant currency basis, as China, Europe, the Middle East and Africa remained weak. Many investors had previously pinned their hopes on China as being the next leg of Nike's growth story, but that hasn't panned out. Revenue for its Converse brand was down about a third.

Likewise, its direct-to-consumer business has also disappointed. Wholesale revenues were up, again mostly thanks to North America, but Nike Direct sales were down 7% (or 9% in constant currency).

Shares of Nike fell 1% in regular trading, and were down 4% in the Wednesday premarket.

A pandemic winner, Nike couldn't hold on to its gains and now trades at just a fraction of its 2021 highs. The stock has lost some 75% in the past five years, and has lost more than 35% since the start of 2026 alone.

Some analysts are hopeful that a new management team will help bolster the company's turnaround: Chief Executive Officer Elliott Hill took over in October 2024, and earlier this month Nike announced it would soon have a new chief financial officer as well.

However, change has been difficult. The company faces a host of competition, from well-known competitors in the U.S. and domestic brands in China. It can't rely on the starpower of basketball players like it did in the past with Michael Jordan.

The stock's long struggle means it could be in danger of getting booted out of the Dow Jones Industrial Average. It has received a number of downgrades recently, including one from KeyBanc Capital Markets last week, in which the analyst said it didn't expect much from the stock until the company can provide more compelling detail about its turnaround, potentially at its investor day this fall.

Little wonder most investors aren't game.

Write to Teresa Rivas at teresa.rivas@barrons.com

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