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Nike stock (NYSE: NKE) is trading higher in the US premarket price action today after CEO Elliott Hill disclosed that he purchased approximately $1 million worth of the company’s shares.
The transaction, disclosed in a Form 4 filing with the Securities and Exchange Commission (SEC), comes as Hill leads a high-stakes turnaround effort for the sportswear giant. Hill bought 16,388 shares of Class B common stock at an average price of $61.10 per share. Following the transaction, Hill owns 241,587 Nike shares valued at around $14.7 million.
Recent Insider Buying in Nike Stock
Hill is not the only high-profile figure betting on Nike’s recovery. This purchase follows a flurry of insider activity this month, as enumerated below.
- Tim Cook: The Apple CEO and longtime Nike lead independent director, purchased 50,000 shares worth nearly $3 million on December 22. The transaction was executed at a weighted average price of $58.97 per share and nearly doubled Cook’s holdings to a total of roughly 105,480 shares, currently valued at over $6 million.
- Robert Swan: Nike Director and former Intel CEO, also bought approximately $500,000 in shares the same day as Cook.
- Philip Knight: Chairman Emeritus Phil Knight recently acquired 4.5 million Class A convertible shares through a private distribution, further solidifying the founding family’s position.
NKE Is Working On a Turnaround Plan
Under Hill, Nike has pivoted to a turnaround strategy known as the “Win Now” plan. This initiative is a direct response to the brand’s recent struggles with declining innovation, loss of market share in performance running, and a “botched” over-reliance on direct-to-consumer (DTC) digital sales.
The strategy is designed to move Nike away from the “lifestyle fashion” focus of the previous era and back into a performance-first mindset. As part of the strategy, Nike is taking several actions. These include
- The “Sport Offense”: Restructuring the entire business around specific sports (Running, Basketball, Soccer, etc.) rather than generic consumer segments (Men, Women, Kids).
- Wholesale Re-engagement: Rebuilding broken relationships with retail partners like Foot Locker, JD Sports, and Dick’s Sporting Goods. Under the previous “Consumer Direct Acceleration” plan, Nike had pulled back from these partners, which inadvertently allowed rivals like On and Hoka to seize shelf space.
- Franchise Discipline: Reducing the supply of over-saturated “classic” models (Air Force 1, Dunk, and Air Jordan to restore their exclusivity and premium status.
- Innovation Acceleration: Speeding up the product pipeline to deliver “athlete-centered” technology, such as the neuroscience-based designs and powered running systems previewed in late 2025.
Nike Rejigged Its Top Management
In a major reshuffle earlier this month, Nike eliminated traditional executive “layers” to make the company faster and more tech-integrated. Eliminated Roles: Nike eliminated the standalone Chief Technology Officer (CTO) and Chief Commercial Officer (CCO) positions to integrate those functions more deeply into operations and finance. These measures would help Nike streamline its business and lower costs.
NKE Stock Fell After Fiscal Q2 2026 Earnings
Meanwhile, the insider buying spree in Nike comes a few days after Nike reported its fiscal Q2 2026 earnings. Nike reported revenues of $12.43 billion in the quarter, which was approximately 1% higher than the corresponding period last year and ahead of the $12.22 billion that analysts had expected. The company’s gross margins fell 300 basis points to 40.6% in the quarter. Nike cited increased tariffs in North America as the primary driver of margin contraction. CFO Matthew Friend estimated that Southeast Asian tariffs alone would cost the company approximately $1.5 billion for the current fiscal year.
Moreover, Nike’s strategic pivot back to Wholesale (up 8%) at the expense of Nike Direct (down 8%) is a double-edged sword. While wholesale gets more products in front of customers, it carries significantly lower margins than selling directly through Nike.com or owned stores. To clear out surplus inventory of older styles (like the Air Force 1 and Dunk), Nike has engaged in aggressive discounting, further eating into the bottom line.
During the earnings call, Hill said that margin expansion is a “top priority” for the management team. He added, “While it will take time, we see the path back to double-digit EBIT margins for NIKE, Inc. That formula includes a multi-branded and diverse product portfolio that is constantly refreshing and bringing in newness, and seeking to drive value out of every relationship we have in the marketplace. It also requires us to be bolder and more creative in how we operate.”
Meanwhile, Nike’s per-share earnings came in at 53 cents, which was well ahead of the 38 cents that analysts had modelled.
NKE’s Sales in Greater China Continue to Plummet
Nike’s North America revenues rose 9% to $5.63 billion. This was driven by a renewed focus on wholesale partnerships (like Dick’s Sporting Goods) and a stabilization of consumer demand for core footwear. However, that was offset by the continued woes in the Greater China region, where Nike’s revenues plummeted 17% to $1.42 billion. This marks the sixth consecutive quarter of decline in what was once Nike’s fastest-growing market. Local competitors like Anta and Li-Ning continue to erode Nike’s market share, and a cooling Chinese economy has curtailed discretionary spending.
Nike admitted that its performance in China was below par. During the earnings call, Hill said, “What we’ve done is a start, but it’s not happening at the level or the pace we need to drive wider change.” He added, “The next step is to further adapt our approach to fit China’s unique monobrand footprint and digital-first marketplace. The reset requires a fresh way of thinking from our NIKE teammates and our NIKE store partners, and it will take time.”
The performance of Asia Pacific and Latin America (APLA) and Europe Middle East, and Africa (EMEA) was mixed, though, with modest growth in Europe and the Middle East being offset by currency headwinds and softer demand in Southeast Asia.
Nike Provided Tepid Guidance
Nike expects revenues to be down low single digits in the current quarter while forecasting further gross margin contraction between 175-225 basis points. The guidance was weaker than expected and is weighing heavily on market sentiments today.
During the earnings call, Hill said, “Fiscal year ’26 continues to be a year of taking action to rightsize our classics business, return Nike digital to a premium experience, diversify our product portfolio, deepen our consumer connection, strengthen our partner relationships, and realign our teams and leadership.” Hill, who returned to Nike last year and took over the baton from John Donahoe, added, “And I say we’re in the middle inning of our comeback.”
