NKE Analysis: Nike's $97 Billion Turnaround Under New CEO Elliott Hill — Down 21% From Highs as New Balance and Tariffs Squeeze the Swoosh
Nike, Inc. (NYSE: NKE) is at an inflection point. The world's largest athletic footwear and apparel company trades at $65.40 — down 21% from its 52-week high of $82.44, though up 25% from the $52.28 low it touched in 2025. The stock's $97 billion market capitalization still dwarfs every competitor, but the narrative has shifted dramatically from the days when Nike commanded a premium multiple as the undisputed king of global sportswear. New CEO Elliott Hill, who took the reins after a decades-long career inside Nike, has acknowledged the problems: over-reliance on a few legacy franchises, a botched direct-to-consumer pivot that alienated wholesale partners, and margin erosion from markdowns. His turnaround plan centres on relaunching performance innovation — including the ACG outdoor brand unveiled in Milan this week — rebuilding wholesale relationships, and cutting costs. The market is cautiously optimistic, pricing the stock at 38x trailing earnings while waiting for proof that the strategy is working. The February 19 CNBC report that New Balance's 2025 sales surged 19% to $9.2 billion underscores the competitive pressure Nike faces. Add Trump's new 10% global tariff — which directly impacts Nike's Asia-heavy supply chain — and the turnaround task becomes even more daunting. Yet Nike's scale, brand power, and $8.3 billion cash position give it resources that no competitor can match. The question is whether Hill can deploy them fast enough.