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Tim Cook buys $3 million in Nike shares, boosting market confidence

by VARINDIA 2025-12-29

Apple CEO Tim Cook has nearly doubled his personal stake in Nike, purchasing around $3 million worth of shares in a show of confidence in the sportswear giant’s turnaround strategy, according to a Reuters report. Cook, who also serves as Nike’s lead independent director, now holds approximately 105,000 shares as of December 22.

The purchase comes just days after Nike reported weaker-than-expected quarterly results, with sluggish sales in China and declining profit margins, highlighting ongoing challenges even as new CEO Elliott Hill works to revive growth through marketing initiatives and product innovation in performance categories such as running and sports.

Nike’s Financial Performance under Pressure

Nike’s latest earnings revealed a mixed performance. North American sales rose 9 percent to $5.63 billion, but revenue in Greater China dropped 17 percent to $1.42 billion. Net income fell 32 percent to $792 million, compared with $1.16 billion a year earlier, while total revenue edged up just 1 percent to $12.43 billion. Following the earnings release on December 18, Nike’s shares have fallen nearly 13 percent, making it one of the poorest-performing stocks on the Dow Jones Industrial Average in 2025.

Hill acknowledged that progress in China has been slower than desired but reiterated that the region remains a critical long-term market. Looking ahead, Nike expects fiscal third-quarter revenue to decline by a low single-digit percentage, with modest growth anticipated in North America. The company is also dealing with the impact of higher tariffs, which contributed to a three-percentage-point drop in gross margin, though inventories fell 3 percent, largely due to tariff-related pressures.

Board Support Signals Confidence

Cook has been on Nike’s board since 2005 and became lead independent director in 2016 following co-founder Phil Knight’s departure as chairman. He has remained closely involved in strategic decisions, including the appointment of Elliott Hill as CEO. Another board member, Robert Swan, former Intel CEO, also purchased approximately 8,700 shares valued at around $500,000 this week.

The stock purchases by senior board members come amid growing competition in China. European rivals have posted contrasting results, with Adidas reporting 10 percent growth in China revenues in its third quarter, while Puma’s sales in the Asia-Pacific region fell 9 percent, citing declines in Greater China wholesale.

Cook’s latest share acquisition underscores his continued confidence in Nike’s long-term prospects, even as the company navigates short-term financial pressures and seeks to strengthen its position in key markets.