Nike Stock Has Been Absolutely Slammed, Bolstering Its Dividend Yield. Is This a Buying Opportunity?
It’s been a brutal stretch for Nike (NYSE: NKE) shareholders. The stock has fallen sharply this year, bringing shares down to levels not seen in years. The athletic apparel and footwear giant has been grappling with intense competition from newer upstart brands and a challenging macroeconomic environment that has pressured discretionary spending. But despite the market’s pessimism, the company’s recently reported fiscal second-quarter results provided some glimmers of hope that a turnaround is taking root. Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue » So, with the stock down 18% in 2026 alone and about 56% over the past three years, even as the business is showing some signs that its turnaround is working, is this a buying opportunity? Let’s take a closer look at the business to see whether this beaten-down stock might actually be a good opportunity. Image source: Getty Images. Wholesale momentum returns Nike’s fiscal second quarter of 2026 (ended Nov. 30, 2025) showed a company that is beginning to stabilize its top line. Total revenue for the period was $12.4 billion — up 1% year over year on a reported basis. This top-line performance represents a notable stabilization compared to recent quarters, where sales had been declining. The most encouraging detail from the quarter was the strength in Nike’s wholesale channel. For years, the company aggressively prioritized its direct-to-consumer business, sometimes at the expense of its retail partners. But management has recently pivoted to repair those relationships. And the strategy appears to be working. Wholesale revenue in fiscal Q2 rose 8% year over year to $7.5 billion. “The geography that is leading the way for NIKE right now is North America,” explained Nike chief financial officer Matthew Friend in the company’s fiscal second-quarter earnings call. He noted that the team’s effort to reconnect with partners led to “over 20% wholesale growth in North America with meaningful growth coming from existing partners.” But the company still has some work to do with its direct-to-consumer business. Unfortunately, its wholesale strength was offset by weakness in the company’s own channels. Nike Direct revenue fell 8% year over year to $4.6 billion, dragged down by a 14% decline in the brand’s digital sales. Another positive sign for the business is that Nike is keeping its supply chain disciplined despite the challenging sales environment. Inventories at the end of the second quarter stood at $7.7 billion, down 3% year over year.