Can Do It? Curious case of Nike

Nike was once the undisputed king of athletic wear, a brand that not only dominated sports but defined culture. But in recent years, its stock has struggled. Sluggish growth, rising competition from brands like Adidas, Lululemon, Hoka and On, and missteps in supply chain and digital strategy have kept investors cautious. From its peak in late 2021, Nike’s stock has lost significant ground (66%), underperforming broader indices.

Now, the brand is plotting a comeback.

Nike has brought back Elliot Hill, its former executive, signalling a return to fundamentals; product innovation, athlete partnerships, and rebuilding its wholesale and direct-to-consumer strategy. In a surprising show of confidence, legendary investor Bill Ackman has taken a large position in Nike, calling it a classic turnaround story with strong long-term fundamentals.

Ackman’s thesis? The brand still has enormous global equity, a loyal customer base, and the ability to recover margins and reignite growth through operational focus and brand clarity.

Nike isn’t just betting on new shoes. It’s betting on a return to form and investors are watching closely.

— Pai Capital