Nike Stock Tumble Lower

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Nike Stock Tumble Lower

Nike Stock Continues To Tumble Lower. Should You Buy It?

Nike stock keeps refreshing lows like there's no tomorrow. In April, the stock price went down by 16%, and the stock is already trading negatively on a yearly basis.

Nike is facing multiple headwinds, and problems just continue to multiply. For starters, the revenue from the Chinese market continues to slip. Similarly, high tariffs are squeezing the margins of the North American market.

Nike Turnaround Can Take Years

Amidst all of this, management also cut 14000 jobs in an attempt to turn things around. Also, the recent guidance shows that the timeline for return to growth is now pushed even further.

When it comes to Nike or any other company, we must realize that turnaround requires patience and time. In Q3 FY2026, the revenue of Nike was $11.3 billion y/y. Now, that's a positive sign, as the revenue in FY2025 showed a 10% decline.

However, the EPS is now sitting at $0.35 with a -35% decline, and the income has also dropped from $794 million to just $520 million.

But one consolation for investors is that Nike pays a dividend. The dividend yield of Nike is 3.9%, which can be quite attractive for many investors.

Also, Nike has been paying the dividend for 24 years in a row. It has also raised the dividend yield every year without fail!

However, the dividend payments alone do not justify the high risks associated with the Nike stock. The weakness in China is real, and the fashion market remains unpredictable and fickle.

If we look around, other companies like One Holding and Lululemon are actually posting strong growth. So, this tells us it is more of a Nike problem.

When we consider all of these things, it becomes clear that it is best to avoid Nike stock. However, it might be appealing to those who want dividend income, as the Nike stock price is now very low.

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