With Nike Stock Below $50, Is This a Buy-the-Dip Moment?

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And the pain intensified on Tuesday afternoon, when the company reported its fiscal third-quarter results. Challenged sales in China and a weak outlook for the current quarter sent shares plummeting, putting the stock below $50 -- far below its all-time high of more than $165 in late 2021.With the stock down so sharply, investors might be wondering if this iconic consumer brand is finally cheap enough to buy.Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »Image source: The Motley Fool.Nike's fiscal third quarter (a period wrapping up on Feb. 28, 2026) shows a business that is still very much in the middle of a turnaround under CEO Elliott Hill.Sales were flat year over year, and Nike's gross margin narrowed by 130 basis points to 40.2%, primarily due to higher North American tariffs. This margin compression, combined with a higher tax rate, led to a 35% year-over-year decline in net income to $520 million. And earnings per share similarly fell 35% to $0.35.Further, the company's direct-to-consumer channel is struggling. Nike Direct revenues fell 4% year over year to $4.5 billion, and sales at the company's Converse brand plummeted 35%. Management also pointed to continued sluggishness in the important China market -- a stark contrast to the surging sales competitors like Lululemon Athletica (NASDAQ: LULU) are experiencing in that region.And the company's outlook was especially disappointing, with the company guiding for fourth-quarter revenue to fall 2% to 4% year over year and Greater China remaining a weakness, with management guiding for sales in the market to decline about 20% year over year.Management's expectations for a 20% decline in Greater China is startling, given that sales in the market fell 10% in fiscal Q3. The sharper decline reflects "reduced sell-in" as the company "accelerated actions to clean up the marketplace," explained Nike chief financial officer Matt Friend in the company's fiscal third-quarter earnings call.Despite clear challenges, there are also signs that Nike's business is stabilizing.Most notably, the company's wholesale revenues climbed 5% year over year to $6.5 billion, extending strong momentum in wholesale that only recently resurfaced. After several years of prioritizing its direct-to-consumer channels at the expense of its retail partners, Nike's renewed focus on the wholesale channel appears to be paying off and driving top-line resilience in North America.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoTrending tickersNKE NIKE, Inc. 45.20 -7.62 (-14.43%)INTC Intel Corporation 48.18 +4.05 (+9.18%)CYCN Cyclerion Therapeutics, Inc. 6.61 +5.06 (+326.46%)RH RH 107.02 -32.80 (-23.46%)BA The Boeing Company 208.89 +9.85 (+4.95%)PortfolioSign in to access your portfolioSign inTop gainersRGC Regencell Bioscience Holdings Limited 37.45 +12.02 (+47.27%)FSLY Fastly, Inc. 32.66 +3.60 (+12.39%)KOD Kodiak Sciences Inc. 42.50 +4.38 (+11.49%)PVH PVH Corp. 77.50 +7.74 (+11.10%)MU Micron Technology, Inc. 374.45 +36.78 (+10.89%)Top losersRH RH 107.23 -32.59 (-23.31%)NKE NIKE, Inc. 45.17 -7.65 (-14.49%)AXTI AXT, Inc. 49.05 -7.93 (-13.92%)SOC Sable Offshore Corp. 14.92 -1.60 (-9.69%)COGT Cogent Biosciences, Inc. 34.90 -3.60 (-9.34%)Most activeNVDA NVIDIA Corporation 176.97 +2.52 (+1.45%)INTC Intel Corporation 48.20 +4.07 (+9.21%)NKE NIKE, Inc. 45.17 -7.65 (-14.49%)MU Micron Technology, Inc. 374.45 +36.78 (+10.89%)NOK Nokia Oyj 8.40 +0.36 (+4.42%)Top economic eventsEarnings eventsMy earnings eventsEarnings events