Nike Reported Its Q3 Earnings Last Week. Is a Turnaround on the Horizon for the Struggling Retailer?

When Nike (NYSE: NKE) CEO Elliott Hill stood in the Camp Nou stadium earlier this year, staring at scaffolding and cranes during Barcelona's renovation, he said something worth sitting with: "This is Nike right now," according to the Observer. That's an unusually honest thing for a CEO to say about a company he runs, and after watching recent third-quarter results, the metaphor still fits.Q3 revenues came in flat at $11.3 billion, down 3% on a currency-neutral basis. Net income fell 35% year over year to $520 million, with gross margin declining 130 basis points to 40.2%, weighed down by tariff-related product costs. The stock dropped more than 8% after the report despite beating EPS estimates. This means that Wall Street wanted more, and the patience for "the work takes time" narratives is wearing thin.But buried inside the flat headline of Nike is a real signal worth paying attention to. Running -- the category Nike arguably built its legacy on -- grew 20% in the quarter. In North America, the wholesale channel, which Nike essentially abandoned in favor of its own stores and website, grew 11%. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool