Can Nike Finally Bounce Back in 2026?

It was another great year for stocks in 2025, but not everyone joined the party. Several popular companies with heavy consumer exposure, such as NIKE NKE, faced pressure, losing roughly 15% on a YTD basis.It has been a challenging few-year stretch for NIKE, facing post-pandemic demand issues while also getting its margins hit by recent tariffs. But can 2026 be the bounce-back year? Let’s take a closer look at the current outlook.Can NIKE Shares Bounce?NIKE is currently undergoing several key changes with its ‘Win Now’ program, including rebuilding its relationships with retailers and emphasizing a greater focus on its more popular shoes. It’s important to note that NIKE largely cut out retailers to push direct sales over recent years, but the reduction of shelf space backfired considerably, significantly reducing its presence.The operational turnaround hasn’t yet fully materialized, with sales up a modest 0.6% year-over-year throughout its latest period. As shown below, the company’s year-over-year sales growth rates over recent periods have been well below levels seen across its history.Image Source: Zacks Investment ResearchFollowing its latest release, Elliott Hill, CEO, said, ‘NIKE is in the middle innings of our comeback. We are making progress in the areas we prioritized first and remain confident in the actions we're taking to drive the long-term growth and profitability of our brands.’The company’s profitability picture has also been challenged, with its gross margin contracting 300 basis points year-over-year throughout its latest period. Tariffs were behind the crunch, reflecting yet another headwind NIKE has faced. Please note that the chart below tracks margins on a trailing twelve-month basis.Image Source: Zacks Investment ResearchIts current year outlook has also been slashed considerably, with the current $1.56 Zacks Consensus EPS estimate down more than 30% over the last year. Next year’s estimate has fallen 14% over the same timeframe.Image Source: Zacks Investment ResearchPutting Everything TogetherLegendary apparel titan NIKE NKE has faced numerous challenges over recent years, with a shift to a more direct-to-consumer approach post-pandemic largely backfiring. The approach also reduced its shelf space across retailers, massively impacting the brand's visibility.Recent tariffs have also been affecting profitability, reflecting yet another headwind. But the company’s resilience has to be noted, and recent top line performance has been well improved relative to recent periods. While the 0.6% year-over-year revenue growth rate throughout its latest period isn’t impressive, it reflects a considerable improvement compared to the -12% and -9% declines we saw throughout early 2025.The bearish revision trends still warrant caution. A quarterly release that reveals accelerating sales growth and the easing of tariffs could easily shake the stock out of its recent woes. It's a stock that deserves a very close eye in 2026. Just Released: Zacks Top 10 Stocks for 2026Hurry – you can still get in early on our 10 top tickers for 2026. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful.From inception in 2012 through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2026. You can still be among the first to see these just-released stocks with enormous potential.See New Top 10 Stocks >>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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks