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Globe and Mail
3 days ago
- Business
- Globe and Mail
NIKE Bets on EMEA Growth: Can This Strategy Pay Off in FY26?
NIKE Inc. 's NKE EMEA strategy is emerging as one of the most promising growth levers for fiscal 2026, building on progress already made in cleaning up the marketplace and repositioning NIKE Digital as part of an integrated channel strategy. In fourth-quarter fiscal 2025, the region delivered growth in key performance categories like running and training, while women's sportswear footwear returned to growth. Wholesale sportswear also posted gains, reflecting the benefits of diversifying beyond classic franchises such as Air Force 1, Dunk and AJ1. The company ended the quarter with inventory slightly ahead of targets and a healthier balance of full-price sales. A core pillar of NIKE's EMEA push is the 'sport offense' realignment, dedicated cross-functional teams focused on specific sports to deepen athlete relationships, drive targeted innovation and tailor storytelling by market. This sharper focus enables the company to match local consumer demand with sport-specific product pipelines, such as high-performing running footwear (led by the Vomero 18 franchise) and expanded women's basketball offerings. The approach also supports sharper marketplace segmentation, allowing NIKE to deliver unique assortments to wholesale partners like JD Sports while maintaining premium positioning in NIKE Direct. In fiscal 2026, NIKE expects the EMEA region to benefit from a stronger holiday order book, bolstered by growth in performance categories and new dimensions in sportswear to offset declines in classic franchises. Momentum in the region is also supported by improved wholesale sell-through rates, healthier inventory levels and higher full-price sales penetration. If the sport offense model continues to generate both consumer excitement and channel profitability, EMEA could be a key driver of the company's return to sustainable growth in fiscal 2026. NKE's Competition in the Global Arena adidas AG ADDYY and lululemon athletica inc. LULU are the key companies competing with NIKE in the global market. adidas remains one of NIKE's strongest global competitors, leveraging its deep heritage in performance sports and lifestyle segments to maintain a strong foothold in markets like EMEA and Asia-Pacific. The brand continues to benefit from its credibility in football, running and training, reinforced by partnerships with elite clubs, athletes and cultural icons. In recent years, adidas has accelerated its innovation cycle, introducing performance-driven footwear like the Adizero and Ultraboost lines, while expanding its sustainability initiatives, such as increasing the use of recycled materials through its Primegreen and Primeblue platforms. lululemon has carved out a premium niche in athletic apparel, dominating the global yoga, studio and athleisure markets while steadily expanding into high-performance categories like running, training, golf and tennis. lululemon's vertically integrated model, with a strong direct-to-consumer foundation, allows for tight control over pricing, product drops and customer experience. NKE's Price Performance, Valuation & Estimates Shares of NIKE have lost 1.1% year to date compared with the industry 's decline of 5.2%. From a valuation standpoint, NKE trades at a forward price-to-earnings ratio of 40.07X compared with the industry's average of 29.34X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for NKE's fiscal 2025 earnings implies a year-over-year decline of 12.04%, while that for fiscal 2026 indicates growth of 1.9%. The company's EPS estimate for fiscal 2025 and 2026 has been unchanged in the past seven days. Image Source: Zacks Investment Research NIKE currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. See our %%CTA_TEXT%% report – free today! 7 Best Stocks for the Next 30 Days Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NIKE, Inc. (NKE): Free Stock Analysis Report lululemon athletica inc. (LULU): Free Stock Analysis Report Adidas AG (ADDYY): Free Stock Analysis Report
Miami Herald
10-07-2025
- Business
- Miami Herald
Your favorite Nikes might be disappearing soon
I'll admit it...I'm a sucker for the classics. Give me a crisp pair of Air Jordan 1 Lows or Nike Dunks in a fresh colorway and I'm good. They're effortless, they go with everything, and they make you look put together without even trying. There's something about their shape, the colors, the nostalgia. They don't scream "look at me," but if you know, you know. And I'm not the only one who feels that way. These styles have had a stranglehold on streetwear and casual fashion for years. At one point, it felt like every other person walking into a coffee shop was wearing some version of a Panda Dunk. Related: Nike's latest announcement has fans scratching their heads But if you've been trying to buy a new pair lately and coming up not imagining it. Nike is quietly cutting back on these once-iconic sneakers. Fewer drops. Less shelf space. Slower restocks. The same styles that used to drive hype and dominate resale markets are now being phased out. Not because people stopped loving them-but because Nike's strategy is changing. It's a major shift and most customers won't see it coming. Especially if, like me, they assumed their go-to pairs would always be there. In its latest earnings report, Nike revealed something surprising: the sneakers that once built the brand are now dragging it down. According to CFO Matt Friend, Nike's classic footwear franchises (including the Air Force 1, Dunk, and Air Jordan 1) declined more than 30% in the fourth quarter. That alone created nearly a $1 billion revenue headwind. And Nike isn't trying to fix that decline. It's actively pulling back. The company says it's intentionally "right-sizing" those franchises to make room for new performance and sport-led products. In other words, Nike doesn't want these shoes to carry the business anymore. Related: Amid dupe lawsuit drama, Costco shoppers praise viral product CEO Elliott Hill put it bluntly: "We set out to aggressively right-size three very important franchises." Instead, the company is doubling down on running, training, and basketball. And while new models like the Vomero 18 and A'ja Wilson's A-ONE are gaining traction, they haven't scaled fast enough to offset what Nike's walking away from. The transition has been painful. Revenue is down 12%, and Nike Digital (the channel where many of these classics sold) is down 26% year-over-year. But Nike insists this is part of the plan. The brand calls it a "sport offense" and says it's time to reset for long-term growth. If you're a fan of the classics, this isn't great news. Nike isn't flooding the market with Dunks or Jordans the way it used to. That means fewer colorways, limited restocks, and a much tougher time finding your favorite pair in your size. And because Nike is repositioning its Digital channel as a full-price destination, those sale rack steals? They're likely not coming back. Nike is betting its new sport-focused gear will get shoppers just as excited. But that shift takes time-and risks leaving longtime fans behind in the process. I've even noticed it myself. The drops are fewer and farther between. I used to see new Dunk colorways popping up all the time-now it's mostly silence. And when a pair does drop, it's gone in minutes. So what can you do if your favorite pair is vanishing? Buy now, while you can. Keep an eye on trusted retailers. And know that if it feels like Nike is changing its identity, that's because it is. The classics aren't totally they're no longer the main event. Related: Nike raises prices and puts the blame purely on tariffs The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
