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The market has enjoyed a great 2024 so far, with a resilient economy and favorable earnings results providing positive tailwinds.

However, the positivity hasn’t been felt by all stocks, including long-time apparel favorite Nike (NKE - Free Report). Down 30% in 2024, shares have witnessed a tough showing, with its recent quarterly results causing pressure post-earnings.
 

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But is it due for a comeback? Let’s take a closer look at the company’s current standing.

Nike Looks to Rebalance Product Portfolio

Concerning the negative knee-jerk reaction following its latest print, Nike lowered its FY25 outlook following challenges faced throughout the quarter. Analysts downwardly revised their earnings expectations accordingly following the lowered outlook, landing the stock into an unfavorable Zacks Rank #5 (Strong Sell).
 

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Still, it doesn’t appear that consumer weakness has been driving the retail giant's soft results, but rather a reflection of consumers’ shifting preferences. CFO Matt Friend stated, "Therefore, despite continued marketplace demand, we are advancing our timelines to tighten total supply of certain classic footwear franchises – at different paces, across different channels, around the world."

The company remains focused on rebalancing its product portfolio accordingly, hoping to re-capture consumers through innovation.

Paris 2024 Olympics Provides Big Exposure

Nike gear is seen all over the Paris 2024 Olympics, providing the company with a meaningful opportunity to re-capture market share in the face of consumers. In fact, each Team USA member received an exclusive Nike Athlete Bag filled with apparel, footwear, and accessories.

Additionally, the company also hosted its ‘Nike On Air’ event earlier in Paris, which signaled the beginning of its new ‘multi-year innovation super cycle.’ As mentioned before, a few of the company’s classic footwear franchises have faced pressure, leaving it no choice but to rethink its current approach and adjust its portfolio.

Visa Plays Big Role in Olympics

Financial titan Visa (V - Free Report) is also heavily involved in the event, being the exclusive Payment Technology Partner at the Olympic and Paralympic Games.

The company’s transaction metrics are likely to see a positive boost, with nearly 13.5 million tickets going on sale. Visa’s technology will facilitate each of these transactions, building on a long-standing relationship.

The outlook for Visa’s current fiscal year has remained positive, with the company expected to post 13% EPS growth.
 

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Bottom Line

Exposure during the Paris Olympics could provide a meaningful boost for Nike (NKE - Free Report), as the company has recently faced challenges concerning shifting preferences.

A lowered outlook caused analysts to negatively revise their earnings expectations for the stock, landing it into an unfavorable Zacks Rank #5 (Strong Sell). Investors will be better off waiting until positive earnings estimate revisions hit the tape, which would signal a turnaround in sentiment overall.

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