Is It Time to Just Buy Nike Stock as a Turnaround Takes Hold?

Geoffrey Seiler, The Motley Fool

Sun, Jun 29, 2025, 5:15 PM 5 min read

• Nike shares jumped higher as the company indicated the worst is over.

• The company has been laying the foundation to improve its business moving forward.

• With earnings depressed, now could be a good time to buy the stock.

• 10 stocks we like better than Nike ›

It's been frustrating to be a Nike (NYSE: NKE) investor the past few years, but investors cheered after new CEO Elliott Hill indicated that the worst was now behind the company after it reported its fiscal fourth quarter results.

Nike shares surged on the results, which topped low expectations, although the stock is still down on the year and more than 20% lower over the past five years.

Let's delve into Nike's recent earnings to see why now is a good time to pick up shares in the iconic sneaker and apparel maker.

Hill, who has been on the job for less than a year, has been working hard to help turn around Nike's business following the missteps of former CEO John Donahoe. Hill's predecessor neglected innovation and pushed the company's classic footwear segment, which consists of brands like Air Jordan and Air Force 1. He also made a big direct-to-consumer push while neglecting important wholesale relationships.

Hill has been working to rewind the damage done by Donahoe through his Win Now action plan. The main tenet of his plan is to return Nike to its innovation roots. He has reorganized the business to drive sports-specific innovation across its three main brands: Nike, Jordan, and Converse. The company has seen some early traction with new innovation, with its Vomero 18 running shoe becoming a $100 million-plus franchise with strong sell-through just 90 days after launch.

The company is also working to mend its relationship with wholesalers. On this end, it recently announced a new partnership with Amazon, where the e-commerce giant will carry a select assortment of Nike footwear, apparel, and accessories. Nike also hired retail marketing, visual merchandising, and account managers to work with large wholesalers to help with their presentations and create better consumer connections.

In addition, the company is looking to implement sharper marketplace segmentation in order to serve its customers at different price points. At the same time, it is looking to position Nike Digital and Nike Direct as premium destinations. This means you might be able to get some lower-priced Nike products at a retailer like Kohl's, while Nike will have its high-end products with the newest technology on its apps and in its stores.