Early Turnaround Opportunity with Margin Recovery UpsideNIKE, Inc. Class BBATS:NKEgorgevorgianNike, Inc. is currently trading around $47-48, near multi-year lows, despite generating approximately $46.5B in TTM revenue, highlighting a clear disconnect between price and scale. In the latest quarter, revenue reached $12.4B, slightly up YoY (~+0.6%), indicating early signs of stabilization after prior declines. However, gross margin compressed from ~45% to ~40–41%, reflecting temporary pressure from promotions and inventory clearing, which has driven net income down by roughly 35–45% YoY. Importantly, these pressures are cyclical rather than structural, and the current valuation already prices in weak China performance and margin headwinds. With inventories stabilizing and North America returning to growth (+3% YoY), Nike is entering a potential recovery phase where even modest margin normalization could significantly expand earnings. At current levels, the stock offers an asymmetric setup, where downside appears limited relative to the upside from margin recovery and demand normalization. Additionally, upcoming global sporting events are expected to act as a demand catalyst, as athletic apparel and footwear sales historically see a noticeable uplift during major international competitions(+20-25%).