Nike's stock has fallen more than 50% since Elliott Hill replaced John Donahoe as CEO in late 2024, and only 11 of 43 analysts rate it a buy. Sales fell 4% year over year last quarter, and Greater China sales dropped 26% in the first quarter, while rivals On and Decker Outdoor's Hoka reported strong momentum in China. Nike's new Pace plan targets $2.5 billion in cost savings, but most will not arrive for two or three years. Gross margin rose 60 basis points to 42.8% but remains below 45.4% a couple of years ago while competitors' margins improved, so the article suggests waiting to see whether Pace restores growth rather than buying now.
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