NIKE Bets on EMEA Growth: Can This Strategy Pay Off in FY26?

NIKE Inc.’s NKE EMEA strategy is emerging as one of the most promising growth levers for fiscal 2026, building on progress already made in cleaning up the marketplace and repositioning NIKE Digital as part of an integrated channel strategy. In fourth-quarter fiscal 2025, the region delivered growth in key performance categories like running and training, while women’s sportswear footwear returned to growth. Wholesale sportswear also posted gains, reflecting the benefits of diversifying beyond classic franchises such as Air Force 1, Dunk and AJ1. The company ended the quarter with inventory slightly ahead of targets and a healthier balance of full-price sales.A core pillar of NIKE’s EMEA push is the “sport offense” realignment, dedicated cross-functional teams focused on specific sports to deepen athlete relationships, drive targeted innovation and tailor storytelling by market. This sharper focus enables the company to match local consumer demand with sport-specific product pipelines, such as high-performing running footwear (led by the Vomero 18 franchise) and expanded women’s basketball offerings. The approach also supports sharper marketplace segmentation, allowing NIKE to deliver unique assortments to wholesale partners like JD Sports while maintaining premium positioning in NIKE Direct.In fiscal 2026, NIKE expects the EMEA region to benefit from a stronger holiday order book, bolstered by growth in performance categories and new dimensions in sportswear to offset declines in classic franchises. Momentum in the region is also supported by improved wholesale sell-through rates, healthier inventory levels and higher full-price sales penetration. If the sport offense model continues to generate both consumer excitement and channel profitability, EMEA could be a key driver of the company’s return to sustainable growth in fiscal 2026.NKE’s Competition in the Global Arenaadidas AG ADDYY and lululemon athletica inc. LULU are the key companies competing with NIKE in the global market.adidas remains one of NIKE’s strongest global competitors, leveraging its deep heritage in performance sports and lifestyle segments to maintain a strong foothold in markets like EMEA and Asia-Pacific. The brand continues to benefit from its credibility in football, running and training, reinforced by partnerships with elite clubs, athletes and cultural icons. In recent years, adidas has accelerated its innovation cycle, introducing performance-driven footwear like the Adizero and Ultraboost lines, while expanding its sustainability initiatives, such as increasing the use of recycled materials through its Primegreen and Primeblue platforms.lululemon has carved out a premium niche in athletic apparel, dominating the global yoga, studio and athleisure markets while steadily expanding into high-performance categories like running, training, golf and tennis. lululemon’s vertically integrated model, with a strong direct-to-consumer foundation, allows for tight control over pricing, product drops and customer experience.NKE’s Price Performance, Valuation & EstimatesShares of NIKE have lost 1.1% year to date compared with the industry’s decline of 5.2%. Image Source: Zacks Investment Research From a valuation standpoint, NKE trades at a forward price-to-earnings ratio of 40.07X compared with the industry’s average of 29.34X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for NKE’s fiscal 2025 earnings implies a year-over-year decline of 12.04%, while that for fiscal 2026 indicates growth of 1.9%. The company’s EPS estimate for fiscal 2025 and 2026 has been unchanged in the past seven days. Image Source: Zacks Investment Research NIKE currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.See our %%CTA_TEXT%% report – free today!7 Best Stocks for the Next 30 DaysWant 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 Report lululemon athletica inc. (LULU): Free Stock Analysis Report Adidas AG (ADDYY): 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