Nike is undergoing a significant reshuffle at the executive level as part of its “Win Now” turnaround strategy, aimed at enhancing efficiency and digital operations. Under the leadership of CEO Elliott Hill, the company is streamlining its C-suite, creating new roles, and eliminating certain positions to focus on faster decision-making. This restructuring comes as Nike seeks to strengthen its connection with consumers and improve its market performance.
One major change includes the promotion of Venkatesh Alagirisamy to the newly established role of Chief Operating Officer. Alagirisamy will now oversee logistics, manufacturing, and technology leadership, following the removal of the Chief Technology Officer position, which resulted in the exit of Dr. Muge Dogan. Additionally, the heads of Nike’s four major regions—Greater China, EMEA, North America, and APLA—will now be part of the senior leadership team, reporting directly to Hill. The Chief Commercial Officer role has also been eliminated, with CFO Matt Friend taking charge of Global Sales and Nike Direct to better align marketplace strategies.
This executive shake-up raises questions about the future of Nike’s stock, which has faced volatility over the past year. Currently, the company’s market capitalization stands at approximately $97.1 billion. After reaching a 52-week high of $82.44 in February, Nike’s stock has retracted by 20.3%, closing the last session at $65.82. Over the past year, the stock has declined by 16.2% and 13% year-to-date, reflecting ongoing challenges as the company navigates internal restructuring and external economic pressures.
The leadership changes coincide with Nike’s efforts to rebuild its wholesale business and correct previous missteps in its direct-to-consumer strategy. While early signs of recovery have emerged, including a 7% increase in wholesale revenue to $6.8 billion, challenges remain. The direct-to-consumer segment saw revenues drop by 4% to $4.5 billion, and Converse revenues fell by 27% to $366 million.
Nike reported its fiscal first quarter (Q1 FY2026) results on September 30, covering the period ending August 31. Total revenue reached $11.7 billion, a modest 1% increase from the previous year. However, profitability took a hit, with net income declining by 31% to $0.7 billion and earnings per share (EPS) dropping by 30% year-over-year to $0.49, despite exceeding expectations.
Geographically, growth has been uneven. North America reported a revenue increase of 4%, driven by gains in apparel and equipment, as well as a rebound in demand for categories like running and training. In contrast, Greater China experienced a nearly 9% decline, impacting overall results. Management has expressed cautious optimism, indicating that progress under the “Win Now” plan may not be linear. The company anticipates Q2 revenues to decline in low single digits and gross margins to decrease between 300 and 375 basis points.
Analysts predict EPS for fiscal 2026 to be around $1.65, a decrease of 23.6% year-over-year, before rebounding by 56.36% in fiscal 2027. Recently, RBC Capital reaffirmed its “Outperform” rating and a price target of $85 for Nike. Analysts noted ongoing progress in managing excess inventory, contributing to confidence that the company will improve its operational position entering 2026. RBC also expects the fiscal Q3 2026 outlook to indicate stabilizing revenue and earnings trends.
Overall, Nike’s stock currently holds a consensus “Moderate Buy” rating among analysts. Of the 35 analysts covering the stock, 17 recommend a “Strong Buy,” while four suggest a “Moderate Buy.” Twelve analysts have a “Hold” rating, and two recommend a “Strong Sell.” The average price target for NKE is $82.76, suggesting a potential upside of 25.5%. Notably, the highest target price of $120 indicates that the stock could appreciate by as much as 82.2%.
As Nike navigates this transformative period, investors must weigh the implications of the leadership changes and the company’s strategic focus on rebuilding its market presence. The restructuring may position Nike for better performance in the long term, but the challenges ahead will require careful monitoring.
