Nike’s First Investor Day in 9 Years Is Days Away: 3 Numbers You Need to Know Before Nov. 17

It has long held a leadership position in the global sportswear market. But Nike (NYSE:NKE) shares have been on a losing streak, and investors are starting to lose patience. The turnaround effort under CEO Elliott Hill is taking longer than anticipated.

The company had its last investor day in 2017. Its next one is scheduled for Nov. 16 and 17. During the two-day presentation, Nike will provide investors with critical updates about the direction the business is headed. Management will discuss its growth objectives and strategic priorities.

Before being flooded with a fresh look at Nike's outlook, here are three numbers you need to know about this consumer discretionary stock.

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Declining sales

Nike is trying to recapture its edge. Product innovation has been a weak point in recent years, with the business leaning too heavily on its classic footwear designs. This doesn't drive excitement among customers, who are always chasing new trends in the world of fashion. The success of budding rivals in an already competitive industry has made things even more difficult.

That backdrop continues to pressure the top line. For fiscal 2027, executives expect that Nike's revenue will register a high-single-digit percentage dip. If this forecast holds true, it would follow flat sales in fiscal 2026 and a 10% decline in fiscal 2025.

The situation is even worse in the Greater China segment. What was Nike's fastest-growing market in the past, a country it has operated in for 45 years, has now turned into a major financial drag. During the most recent fiscal quarter (first-quarter 2027 ended Aug. 31), revenue there fell 22% year over year to $1.2 billion. Consumers are favoring local brands over Nike.

Valuation de-rating

Investors once loved having Nike in their portfolios. During the five-year period leading up to their all-time high on Nov. 5, 2021, shares had climbed an impressive 255%. This easily outpaced the broader market. Nike benefited from surging profits.

The mood on Wall Street has soured, as market sentiment has turned sharply negative. At the peak, Nike sported a market capitalization of $281 billion. Today, that figure sits at $56 billion. The stock price trades 79% off its record (as of Nov. 12).

This pessimism is reflected in the valuation. Shares sell at a price-to-earnings (P/E) ratio of 18.2. At first look, this doesn't appear to be a bargain. Over the past 10 years, however, Nike's stock has rarely been cheaper.

Even more surprising is the share price. At $38, shares are roughly at the same level where they stood all the way back in 2014. Nike was generating significantly less in revenue around that time.

Contrarian investors will view this as a favorable setup. Nike might only need to introduce small fundamental improvements in order for market sentiment to make a positive shift.

Big payouts

If you're an income investor, Nike presents a very compelling opportunity. Because the stock has tanked over the past five years, the quarterly payout of $0.41 has a much bigger effect. The dividend yield is strong at 4.3%. This is substantially higher than what some blue chip dividend stocks offer investors.

The dividend's sustainability is something to be mindful of though. I don't believe there is a lot to be concerned about in this regard. Despite its struggles, Nike remains profitable. Its balance sheet is in solid shape, with sizable cash.

Last November, the business raised its quarterly payout by 3%. This was the 24th straight year it did that. If history is any indication, the board of directors will implement another hike this month. Income-seeking investors can be encouraged by that superb track record. It demonstrates Nike's commitment to its shareholders.

Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nike. The Motley Fool has a disclosure policy.