Running Strong, Sportswear Soft: Can NIKE Balance Its Portfolio?

NIKE Inc’s. NKE first-quarter fiscal 2026 results show progress in rebuilding momentum, though performance remains uneven across the portfolio. Running was the standout, growing more than 20% as redesigned franchises like the Vomero, Structure and Pegasus, powered by ZoomX, React X and Air, resonated with consumers. This validates the early impact of the company’s “Sport Offense” strategy. Stronger wholesale trends and 4% North America growth further supported results, helping stabilize the top line despite a still-cautious consumer backdrop.However, softness in Sportswear continues to weigh on NIKE’s results. Key franchises like Air Force 1, Air Jordan 1, Dunk and Converse’s Chuck Taylor remain in reset mode, contributing to a 30% decline in classic footwear in North America. While “look of running” styles and apparel show pockets of strength, global Sportswear remains under pressure and requires clearer consumer targeting and tighter product and inventory discipline. The challenges are even more pronounced in Greater China, where revenues fell 10% and NIKE Digital dropped 27% amid structural marketplace headwinds and heightened promotional activity.However, hurdles persist. Sportswear softness, lagging China sales and weaker digital traffic continue to weigh on results. The challenge now is whether NIKE’s “brand trio” can sustain momentum across markets. If the company harnesses the performance strength of NIKE, the cultural pull of Jordan and the creative energy of Converse, it could reignite growth. Nonetheless, as management cautioned, the comeback “won’t be perfectly linear,” making the next few quarters crucial for proving that NIKE’s brand trio can truly fire on all cylinders.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 AG is regaining momentum as strong demand for its iconic lifestyle franchises, including Samba, Gazelle and Spezial, drives improved sell-through and marketplace heat. The company is also seeing progress in performance categories like running and global football while operating with cleaner inventories and tighter cost discipline, supporting margin recovery. Although North America remains in rebuild mode, Europe, Latin America and China are contributing to growth, placing adidas on a more stable footing as it executes its strategic turnaround.lululemon continues to benefit from strong brand equity and a loyal customer base, though its growth has moderated from the prior-year’s outsized gains. Innovation across women’s and men’s activewear, along with ongoing international expansion, remains a key driver of demand, particularly in the Asia-Pacific. While North America has softened and the athleisure market has normalized, lululemon remains highly profitable with healthy inventory levels, strong DTC performance and a solid long-term runway.NKE’s Price Performance, Valuation & EstimatesShares of NIKE have lost 14.7% in the past three months compared with the industry’s decline of 13.7%.Image Source: Zacks Investment ResearchFrom a valuation standpoint, NKE trades at a forward 12-month price-to-earnings ratio of 29.58X compared with the industry’s average of 26.33X.Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for NKE’s fiscal 2026 earnings implies a year-over-year decline of 23.6%, while that for fiscal 2027 indicates growth of 50.9%.Image Source: Zacks Investment ResearchNIKE stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Zacks Naming Top 10 Stocks for 2026Want to be tipped off early to our 10 top picks for the entirety of 2026? History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2026. Don’t miss your chance to get in on these stocks when they’re released on January 5. Be First to 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 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