Nike: A Solemn Accounting

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Nike. A name synonymous with athletic shoes, and, increasingly, with a bit of a stumble. They’re still a big fish, naturally, in the global pond of sportswear. But things haven’t been…optimal. Mistakes were made. Shares are down, way down – 63% from their peak as of January 23rd. A significant drop, wouldn’t you say? So it goes.

Paying attention to this company is…reasonable. Here are three numbers to consider. Three little clues in the grand, indifferent universe of consumer spending.

1. Revenue Growth

From 2019 to 2024, Nike’s revenue crept upwards at a rate of 6% per year. Solid enough, if you ignore the inevitable heat death of the universe. But then, in 2025, things flattened. A 10% decrease. A little hiccup in the relentless march of time. Analysts predict a 1% rise in 2026. A rounding error, really.

Revenue is a decent indicator of whether people still want the things Nike sells. No competitor comes close to their overall sales volume, but getting back to consistent growth is proving…difficult. They’re trying to innovate, which is what everyone is always trying to do, isn’t it?

North America is doing okay, sales up 9% in the second quarter of 2026. But Greater China…that’s a different story. Down 17% last quarter. A reminder that even the most powerful brands are subject to the whims of global economics.

2. Gross Margin

Gross margin, that little slice of profit, has shrunk from 43.6% to 40.6%. It’s the usual story: higher costs, tariffs adding an extra $1.5 billion to their expenses. It’s always something. Like a cosmic tax on shoemaking.

They’re also trying to stop discounting so much. A sensible move, perhaps. Refreshing the product line is key, naturally. But so is figuring out where to sell everything. They leaned too hard on online sales during the pandemic. Now they’re trying to mend fences with the actual stores. A return to the old ways, in a new, slightly broken world.

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3. Demand Creation Expense

Nike is still a powerful brand. One of the most recognizable names on the planet. That’s worth something, even if it doesn’t solve the fundamental meaninglessness of existence. It’s a moat, they call it. A protective barrier against the forces of competition.

They spent $1.3 billion on marketing in the last quarter, up 13%. More than revenue grew. They pay famous people to wear their shoes. A time-honored tradition. The CFO, Matt Friend, says they’ll earmark about 10% of revenue for this. It’s a branding arms race, really. A desperate attempt to stand out in a world overflowing with…stuff.

So, revenue, gross margin, and marketing expense. Three numbers. They don’t tell the whole story, of course. Nothing ever does. But they offer a glimpse into the strange, often illogical world of consumer goods. And that, my friends, is enough. So it goes.

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2026-01-29 17:42