Nike, Inc.

Nike, Inc. is the world's largest seller of athletic footwear and apparel, generating $46.3 billion in revenue in fiscal 2025 across the Nike, Jordan, and Converse brands. The company designs and markets products in virtually every sport category — from running and basketball to football and training — and sells through a hybrid model of wholesale partners and its own direct-to-consumer operations spanning digital platforms and over 1,000 retail stores globally.

This is a turnaround story playing out at one of the world's most valuable consumer franchises. After two decades of nearly uninterrupted growth, Nike hit a wall in fiscal 2025: revenue fell 10%, operating income dropped 41%, and the stock lost roughly two-thirds of its value from 2021 highs. The company is now in what CEO Elliott Hill calls the "middle innings" of a comeback — unwinding a classic-franchise overexposure that management estimates will have removed over $4 billion in revenue from peak, absorbing roughly $1.5 billion in gross tariff costs, and reorganizing the entire enterprise around a "Sport Offense" that puts individual sports back at the center of product creation and marketing. The file turns on a single question: whether the Sport Offense restores the product engine fast enough to offset the structural headwinds Nike is still working through.

Nike's size and brand power mean it is never an irrelevant business — at $46 billion in revenue and $3.3 billion in free cash flow even in a bad year, it generates resources that most competitors cannot match. But the market is pricing it as a show-me story, and the recovery is visibly uneven: North America is improving, EMEA is fighting a promotional environment, and Greater China is in a reset that management acknowledges will take longer than other regions. This report walks through the mechanics of what broke, what is being fixed, and what an investor needs to believe at the current price.