Josh Gilbert, Lead Analyst, APAC & Middle East, etoro
Abu Dhabi, United Arab Emirates – August, 2026: Nike is one of the most well-known and loved brands in the world, but for shareholders, there’s not much love left. Shares closed at their lowest level for over a decade on Monday, down 77% in the last five years. This didn’t even follow a poor earnings report, this is simply what it looks like when investors slowly lose faith in a turnaround story.
Josh Gilbert, Lead Analyst, APAC & Middle East at etoro explains that a big part of the problem goes back to Nike’s decision to prioritise selling directly to consumers and pull back from wholesale retailers. Nike effectively bet that the strength of the Swoosh meant customers would follow it wherever it sold. Instead, retailers handed that shelf space to On, Hoka and Adidas, and consumers bought what was in front of them. It is now rebuilding those relationships, and there are signs of progress, with wholesale revenue growing again and the running category performing strongly. Winning back shelf space is only part of the challenge, though. Winning back the customer is a separate ordeal.
China has been the other major problem. Greater China sales fell 17% in the latest quarter, as shoppers in the region have been cautious for a few years now, while local brands like Anta and Li Ning have used that to take ground. Nike has also decided to stop selling through the big online partners there and put everything through its own channels. That may improve pricing and brand control in the long run, but that could dent sales in a big way in the meantime.
The wider industry is also under pressure. Running shoe manufacturer On cut its sales outlook last week after quarterly revenue missed expectations, and that raised a bigger question for investors. For a while, the assumption was that the sportswear category was healthy and Nike was simply the broken part of it. On’s update suggests demand across the sector might be softening too, which makes Nike’s turnaround even harder.
For many investors, the question is whether this is a glaring opportunity or simply trying to catch a falling knife. Nike remains the biggest sportswear brand in the world, it is back on speaking terms with retailers, and running is becoming a bright spot, something that is needed if it wants to thrive again. Even with this boon, the market remains unconvinced for now.
Results at the end of September are the next big hurdle for Nike. When Elliott Hill took the top job, everyone knew this turnaround would be a marathon, not a sprint. The problem is that it is starting to feel more like an ultra-marathon, and after another slide to decade lows, investors increasingly look like they’re running out of legs.
About etoro:
etoro is a trading and investing platform that empowers you to invest, share and learn. We were founded in 2007 with the vision of a world where everyone can trade and invest in a simple and transparent way. Today we have 40 million registered users from 75 countries. We believe there is power in shared knowledge and that we can become more successful by investing together. So, we’ve created a collaborative investment community designed to provide you with the tools you need to grow your knowledge and wealth. On etoro, you can hold a range of traditional and innovative assets and choose how you invest: trade directly, invest in a portfolio, or copy other investors. You can visit our media centre for our latest news.
Disclaimers:
Availability of the above-mentioned products and services may vary by jurisdiction and country, for example not all of these products and services are currently available to US users.
Tori does not provide investment advice. Tori is an AI-powered tool designed to offer educational content, data and general market insights. It does not consider personal circumstances and should not be relied upon for investment decisions.
Zengo’s non-custodial wallet is a separate product from etoro’s regulated exchange services. Access to Web3 services through the wallet, including decentralized applications, token swaps, and staking, is not a regulated activity and is not offered, managed, or guaranteed by any etoro regulated entity. Users interact directly with third-party protocols and are responsible for their own actions.
etoro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
etoro is a group of companies that are authorised and regulated in their respective jurisdictions. The regulatory authorities overseeing etoro include:
- The Financial Conduct Authority (FCA) in the UK
- The Cyprus Securities and Exchange Commission (CySEC) in Cyprus
- The Australian Securities and Investments Commission (ASIC) in Australia
- The Financial Services Authority (FSA) in the Seychelles
- The Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) in the UAE
- The Monetary Authority of Singapore (MAS) in Singapore
- etoro USA Securities Inc., registered with Securities and Exchange Commission (SEC) and member of FINRA and SIPC
- etoro USA LLC state and FinCEN (31000318247697) registered
- etoro NY LLC hold licenses with the State of New York (MTL #104940 and VC #122584)
Middle East:
etoro (ME) Limited, is licensed and regulated by the Abu Dhabi Global Market (“ADGM”)’s Financial Services Regulatory Authority (“FSRA”) as an Authorised Person to conduct the Regulated Activities of
(a) Dealing in Investments as Principal (Matched), (b) Arranging Deals in Investments, (c) Providing Custody, (d) Arranging Custody and (e) Managing Assets (under Financial Services Permission Number 220073) under the Financial Services and Market Regulations 2015 (“FSMR”). Registered Office and its principal place of business: Office 26 and 27, 25th floor, Al Sila Tower, ADGM Square, Al Maryah Island, Abu Dhabi, United Arab Emirates.
