Nike, Inc. (NKE)
NYSEConsumer DiscretionaryFootwear & AccessoriesSnapshot 2026-07-07
$43.20-0.33%
Close 2026-07-07 · 1-day change
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Track NKE free→Nike keeps its costs flat near $16.1 billion while investing to grow. It returns $2.5 billion to shareholders with rising dividends. Earnings beats show resilience despite a tough market. The brand remains the largest in athletic shoes and apparel.
Nike faces legal challenges and a weak sales outlook that hurt growth. Management issues and reliance on tariff refunds raise doubts. Revenue fell 1% last quarter and guidance was cut. Innovation struggles slow the turnaround.
The price is about 0% above our fair value near $43, reflecting modest 1.5% revenue growth expected by analysts. Our fair value is below the Street median, signaling cautious optimism. We see risk from weak guidance and legal threats not fully priced in.
Breaks if: expenses rise above $16.1 billion in FY26
Implement organizational changes and cost realignment to improve efficiency while investing in marketplace elevation and growth.
Stated in 4 of last 6 quarters. Selling and administrative expenses were roughly flat at $16.1 billion in fiscal 2026 compared to prior year, with slight quarterly fluctuations. Management has consistently emphasized cost realignment and efficiency investments, with approved restructuring charges and cost management actions. The trajectory shows ongoing cost discipline with limited net reduction but stable expense levels, indicating delivering on cost realignment with ongoing investment.
Standing thesis, reviewed periodically — not a price target or advice.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
“Adjusting our operating costs for greater efficiency over time.”
“Costs associated with exit or disposal activities approved, expected pre-tax charges of approx. $300 million.”
“Operating overhead expense decreased 3 percent to $2.9 billion, primarily due to restructuring charges in prior year.”
“Operating overhead expense decreased 13 percent, primarily due to restructuring charges of $340 million in prior year.”
Breaks if: significant leadership disruption or failure to execute turnaround
Breaks if: revenue growth falls below 1% in FY27
Breaks if: total returns fall below $2.5 billion or dividends per share below $1.63 in FY26
Maintain capital allocation discipline including managing credit facilities and returning capital to shareholders via dividends and share repurchases.
Stated in 3 of last 6 quarters. The company returned $2.5 billion to shareholders in fiscal 2026, including $2.4 billion in dividends and $123 million in share repurchases, up from $0.8 billion in 2025. Dividends per share increased from $1.57 to $1.63. Management has maintained disciplined capital allocation including credit facility management and shareholder returns, showing delivering on capital allocation priorities.
“Returned approximately $2.5 billion to shareholders, including $2.4 billion dividends and $123 million share repurchases.”
“Share repurchases of $123 million, reflecting 1.8 million shares retired under $18 billion program.”
“Returned approximately $0.8 billion to shareholders, including $591 million dividends and $202 million share repurchases.”