Nike’s revenue may continue to decline in the short term, but discounts, inventory turnover, and margins have a chance to improve first. As long as these changes emerge sequentially, convincing the market that the worst is passing, the stock price could rebound ahead of a noticeable recovery in company profits.

This is also what makes Nike most worthy of study after falling to a 12-year low. On August 17, the company’s stock price hit its lowest closing price since 2014; as of August 28, the stock stood at $39.60, with a market capitalization of approximately $58.7 billion, down nearly 80% from its all-time high in 2021. The market is not worried about whether Nike will disappear, but whether it can once again create products consumers are…