Nike just beat Wall Street estimates for its first quarter of fiscal 2026.
It would've been a much more lucrative move to own the market than Nike in the past five years.
The business is rebalancing its distribution strategy and boosting product innovation.
Nike (NYSE: NKE) just reported earnings for its fiscal 2026 first quarter (ended Aug. 31). The global sportswear titan produced revenue of $11.7 billion and diluted earnings per share of $0.49, both coming in well ahead of Wall Street estimates. This might be an encouraging sign as the business aims to turn its situation around. But this has still been a disappointing investment.
This consumer discretionary stock is up 17% in the past four months (as of Oct. 3). Its longer-term track record, though, is best forgotten. If you'd invested $10,000 in Nike shares five years ago, here's how much you'd have today.
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Image source: Nike.
Nike's brand is associated with winning and inspiration, pushing people to strive and become the best versions of themselves. Perhaps the business should take its own advice.
Owning the stock over the past five years would've resulted in investors losing 37% of their starting capital. A meaningful $10,000 would be worth much less today, just $6,300. The overall market fared significantly better.
Nike has struggled in recent years. It leaned too heavily on digital channels, alienating valuable wholesale partners. The business failed to introduce fresh and exciting new products, especially in the running category. And persistently intense competition in the retail sector just adds fuel to the fire.
The latest financial results were a step in the right direction. However, the company has a lot of work left to reach its former glory.
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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.