The Motley Fool
27 Mar 2026, 19:37 UTC · 31w ago
Should You Buy Nike (NKE) Stock Before March 31?
Impact · against what's priced in
Nike's latest financial deterioration is a significant negative catalyst as margins have fallen further than the trough the market had previously assumed. While the price already discounted revenue flatness and wholesale struggles, the 310bps drop in gross margin to 41.4% undermines the 'trough-is-in' thesis.
- NKE−0.50
Challenges what's priced in
- The price assumes
42.9% GM / 8.2% OM as the current run-rate
The market assumes a run-rate gross margin of 42.9%, but the first half of fiscal 2026 saw margins plummet 310 basis points to 41.4%, indicating a deeper profitability collapse than currently priced.
What NKE's price assumes · Feb 24
