Nike (NYSE:NKE) is making headlines again, not just for its latest slogan, but for its recent stock surge as the company pivots back to its roots in sports performance. Despite industry headwinds, Nike remains a dominant force in athleticwear — but is it still a smart investment, or should Canadian investors look closer to home?
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Nike: A Global Giant in Turnaround Mode
Nike stock jumped this week as the company announced a renewed focus on its core sport categories like running, training, and basketball, especially in North America. The retailer surprised markets with stronger-than-expected quarterly revenue, driven by improved inventory control and product momentum.
However, it’s not all smooth sailing. Tariffs are set to hit harder than expected, with Nike projecting a US$1.5 billion impact on margins — up from a previous estimate of US$1 billion. Meanwhile, China remains a weak spot, with rising competition and a 12% drop in digital revenue.
Still, Nike is actively adjusting, not standing still. The company is revamping its product strategy, clearing out underperforming inventory, and aiming for more sustainable growth. While the stock trades at a hefty 32x earnings, it offers a 2.3% dividend yield, making it a solid — if pricey — core holding with defensive potential.
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Canada Goose: A Canadian Comeback Play?
If you’re looking for a homegrown alternative, Canada Goose Holdings (TSX:GOOS) may be worth a look. The luxury outerwear brand recently posted Q1 fiscal 2026 revenue growth of 22%, with direct-to-consumer sales up nearly 24%. Inventory was down 9% to $439.5 million, showing improved efficiency.
The company is actively expanding and modernizing its retail footprint, launching major marketing campaigns ahead of its critical winter and spring/summer seasons. However, Canada Goose is still operating at a loss, reporting an adjusted net loss of $88.2 million. On the bright side, debt has fallen from $766 million to $542 million year-over-year.
Canada Goose is a higher-risk turnaround story, showing promising signs of growth, especially in direct-to-consumer sales — but it’s far from a “set-it-and-forget-it” stock.
Bottom Line
Both Nike and Canada Goose offer potential upside, but come with caveats. Nike has the brand strength, global presence, and modest dividend to appeal to long-term investors, despite tariff and China-related risks. Canada Goose, on the other hand, could deliver short-term gains but comes with more volatility and uncertainty.
For Canadian investors, Nike looks like the safer bet for stable growth and income, while Canada Goose is a speculative play on a successful turnaround. As always, consult with a financial advisor to ensure these stocks fit your risk tolerance and investment goals.
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