Rethinking Nike: Is the Iconic Brand Still a Buy Based on its Turnaround Story?

By Jack Delaney – Apr 14, 2026 at 6:25PM ESTKey PointsNike faces sluggish sales in China. Revenue is expected to drop for its fiscal Q4 2026. North America could be key in the company's turnaround efforts. Investing in a turnaround company is exciting because if you're right that the management team can right the ship, you're rewarded with a rising stock price. That's what may have largely attracted some newer shareholders to Nike (NKE +3.01%), as Elliott Hill took the helm as CEO in late 2024 to get the iconic sneaker seller back on track. But the company's latest earnings report also highlighted one risk of investing in a turnaround story. Image source: Getty Images. Challenges and missteps Nike faced several challenges over the last few years, but broadly, the narrative has been about the retailer trying to regain relevance. Relying more on its iconic status than on innovation, Nike has been left with aging inventory that requires heavy discounts to sell. The company is slowly regaining momentum, with its fiscal 2026 third quarter highlighting progress in its running and global football divisions, as well as improving wholesale revenue in North America. It's also seeing strong demand for its Nike Mind platform, which attracted more than 2 million signups for its innovative footwear. ExpandNYSE: NKENikeToday's Change(3.01%) $1.29Current Price$44.20Key Data PointsMarket Cap$64BDay's Range$42.95 - $44.2152wk Range$42.09 - $80.17Volume23MAvg Vol19MGross Margin40.57%Dividend Yield3.78% Still, it wasn't enough to offset a disappointing outlook for the future. For Q4 2026, Nike expects total revenue to fall as much as 4% year over year, while revenue from China is expected to decline by around 20%. Patience is key The risks of investing in a turnaround are that it may take longer than expected or never happen at all. For Nike shareholders, the good news is that this appears to be a case of taking longer. Wall Street is currently fixated on Nike's China revenue, as that 20% drop is an eye-catching figure. But as management has shared, that is part of a plan to reduce sales and prevent inventory from piling up. I would watch for updates on how that's going, but I wouldn't forget to pay attention to North America as part of the turnaround, as it was the company's largest revenue source in 2025. Management said the region is "leading our comeback," and if Nike can keep innovating and driving new sales, it can eventually be a successful turnaround story. It will just require management to execute and patience from investors to reap the potential rewards.Read NextApr 14, 2026 •By Ben Gran1 Glimmer of Hope for Hard-Hit Nike Stock: Teens Love NikeApr 13, 2026 •By Ben GranNike Got Downgraded: Can the Iconic Brand Ever Recover?Apr 11, 2026 •By Micah ZimmermanNike Reported Its Q3 Earnings Last Week. Is a Turnaround on the Horizon for the Struggling Retailer?Apr 10, 2026 •By Leo SunFrom Allbirds to Nike, the Sneaker Segment is Running Into the Ground. Here's What Retail Investors Need to Know.Apr 10, 2026 •By Stefon WaltersIs Nike's Business Doomed if It Doesn't Win Back China?Apr 10, 2026 •By Travis HoiumNike Stock Is Still BrokenAbout the AuthorJack is a seasoned content strategist with over a decade of experience in financial publishing. He's directed technology, emerging opportunities, and alternative asset publications to deliver actionable insights to investors. He has a B.A. in Communication Studies.TMFJackDelaneyStocks MentionedNikeNYSE: NKE$44.20(+3.01%)+$1.29*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.