Nike Continues Wholesale Push, But Will It Be Enough to Fix Its Flailing Stock Price?

Fleet Feet Columbus Circle recently hosted an event for the Nike Structure Plus sneaker.

Nike is continuing to sign on new wholesale partners as the company — and its stock — continues to be under pressure.

On Tuesday, the Swoosh announced it has inked a new vendor partnership with Fleet Feet. The expanded deal deepens the assortment of Nike Running footwear, apparel and accessories, which span race and road running, and increases distribution from select doors to Fleet Feet’s nationwide footprint.

The news comes one week after Nike’s stock fell over 15 percent to $44.62 on April 1, the first trading session following weak fourth quarter guidance and a slower than expected recovery in the third quarter.

The sell off was more bad news for the Swoosh, as Wall Street continues to punish the brand. Over the last five years, shares for Nike Inc. are down 68 percent from its high of $167.31 per share in November 2021.

On Tuesday, the stock traded down just over 3 percent to $42.69 per share at the time of market close.

And some market watchers, like BNP Paribas Equity Research senior analyst Laurent Vasilescu, aren’t convinced that Nike’s renewed focus on wholesale partnerships like this one with Fleet Feet will save the company.

In a new research note issued on Monday, Vasilescu cited Nike’s 10-Q filing that stated its 11 percent wholesale growth in Q3 was driven by marketplace actions (off-price) and new accounts – not so much with existing accounts.

“We are consistently told by investors that sell-through data remains pressured year-over-year, which Nike acknowledged on the earnings call last Tuesday evening,” Vasilescu stated. “We don’t see any factors that would change the trajectory of the sell-through, near-term. We think Nike North America could actually turn negative as it laps sell-in to new accounts, marketplace actions, all the while as underlying sell-through at existing accounts remains weak.”

Williams Trading analyst Sam Poser has an opposing view, writing in a research note last week that he expects North American sales trends will “remain poised for further positive inflections.”

“While total sales may be challenged through the second quarter of fiscal 2027, margins, ex-tariff impact, should continue to improve,” Poser said. “Management expects balanced growth between wholesale and DTC in the near term. North America will also continue to benefit from having its ground game back in place.”

Despite these mixed viewpoints, it’s no secret that Nike chief executive officer Elliott Hill isn’t pleased with the progress the company has made on its turnaround efforts.

“While we are not satisfied, I am confident that our progress in the areas we prioritize: first, through our Win Now actions, point to where we are ultimately heading across our portfolio,” Hill told analysts on last week’s Q3 earnings call. “Because of the scale and breadth of the Nike portfolio, that progress will not happen all at once.”

Following that call, Hill gathered employees to discuss the state of the business, further expressing his impatience for the company to turn a corner, which sparked major headlines.

“I’m so tired, and I know you are too, of talking about fixing this business,” Hill said at that all-hands meeting last week, according to Bloomberg News. “I want to move to inspiring and driving growth and having fun.”

In response to Bloomberg’s report, Nike said in a statement to FN that the meeting was held to “provide context on the quarter, reinforce what was shared externally, and align on the work ahead.”

“It was a direct conversation about where we are seeing real progress, where we need to move faster, and what it will take to win,” the statement noted. “The discussion reflected the same reality we shared externally: urgency, transparency, focus and a determination to restore growth.”

Last week, the Beaverton, Ore.-based company reported net income in the third quarter of fiscal 2026 fell 35 percent to $520 million from $794 million in the year-ago period. Diluted earnings per share dropped to 35 cents from 54 cents.

Net sales in the period tallied $11.3 billion, flat from $11.3 billion on a reported basis and down 3 percent on a currency-neutral basis.

Looking ahead, Nike said it expects revenues in the coming fourth quarter to be down 2 to 4 percent, with modest growth in North America despite lapping a value liquidation in the prior year largely offset by declines in Greater China and Converse.