Nike Hits Decade Low, Shorts Surge

Nike’s stock just hit its lowest point in a decade, with nearly 5% of shares on loan to short sellers and the brand’s global sports footwear share sliding for a third straight year. Adidas is gaining ground, especially after breaking the two-hour marathon barrier with its latest running shoe. Despite deep discounts on over a third of Nike’s lineup and margins squeezed below 6%, the brand is betting big on its revamped “core-sports” push—hoping double-digit growth in North American running and soccer, plus new launches like the Vomero 18 and upcoming Alphafly updates, will finally turn the tide.

But here’s the catch: regulatory headaches are mounting, with the EEOC probing Nike’s diversity policies and Oregon teachers protesting tax breaks and labor standards. Legal battles and public scrutiny could force expensive changes to how Nike recruits and manages talent, threaten future state incentives, and distract leadership right when execution is critical. Meanwhile, Nike’s trying to stoke excitement with buzzy drops—like the NikeSKIMS “Studio Stretch,” Kobe retros, and fresh PSG and MLB collabs—but only a full-price sell-through will buy them time to fix the core business.

Featuring insights from Morningstar’s David Swartz and portfolio managers at Logan Capital and Flossbach von Storch.

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