It will be a while before Nike returns to its glory, but CNBC’s Jim Cramer is willing to wait. “The reason I’m defending it is because I know most people who think Nike can turn around,” Kramer said Tuesday on “Squawk on the Street.” The stock rose 6.4% a day after the company announced on Sept. 30 that it beat fiscal 2026 first-quarter profit. But the stock has since fallen about 14%, including a 4% rise on Tuesday. “This is one of the better companies out there that went bankrupt,” Kramer added. Nike holds a stake in Kramer’s Charitable Trust, a portfolio used by the CNBC Investment Club. Bank of America agrees. “The recent pullback since Q1 results presents a particularly attractive buying opportunity,” analysts said in a note to clients on Tuesday, citing continued sales and improving margins as Nike’s innovation pipeline strengthens. The sneaker and apparel giant announced a series of new products, including a collaboration with NikeSkims sports shapewear, the upcoming NikeMind shoe collection, and the Aero-FIT performance line. Nike continues to revamp its lineup and introduce new inventory, which analysts say could lead to product wins in 2026. Analysts said the upcoming FIFA World Cup in North America will be a new tailwind for Nike because it will give the company a “megaphone” to showcase its latest products on a global stage. BofA maintained its price target of $84. NKE 5Y Mountain Nike 5 Years It hasn’t been an easy road for Nike investors. The stock price has fallen since hitting a record high of $177.51 at the end of 2021. Nike’s direct-to-consumer strategy under former CEO John Donahoe after the pandemic failed to foster growth and alienated retail partners. But the company’s latest quarter showed a positive sign that Nike’s turnaround strategy under new CEO Elliott Hill is working. Nike’s total sales and earnings per share both exceeded street expectations. For more than a year, Hill has focused on putting sports back at the center of Nike’s universe, including creating sports-themed stores. Still, Hill candidly told CNBC’s Sarah Eisen that a return won’t happen overnight. Important issues remain, including improving relationships with wholesalers and revitalizing sluggish sales in China. Kramer acknowledges that comebacks for apparel brands don’t always work out, pointing to the example of Under Armor. But Kramer sees the Nike bet as a bet on Hill’s strategy, likening it to Starbucks CEO Brian Nicol, who is also in the midst of a sea change. He is confident that both CEOs can return their respective companies to greatness. “I put[Nike]in the same category as the Starbucks of baristas. I think that will come back as well.”
