Nike (NYSE: NKE) stock has been going through an extended rough patch.
Sales and earnings have been under pressure, and industry dynamics have also called into question the extent of the company’s brand strength
In addition to softer demand in key geographic markets, the company has also seen its profit margins eroded. The company posted a net income margin of just 4.6% in the third quarter of its current fiscal year — which ended Feb. 28. For comparison, the business had recorded a net income margin of 7% in last year’s quarter.
For another point of comparison, the business posted a net income margin of roughly 9.7% in fiscal Q3 of 2024. Revenue was up just 0.3% year over year in fiscal Q3. Nike stock is actually down roughly 28% over the last decade.