Nike Is Rebounding: What Canadian Investors Should Know

Nike’s comeback looks real after an inventory cleanup and product pivot, but tariffs and China weakness cloud whether Canada Goose is a safer Canadian play.

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Key Points

  • Nike’s turnaround: inventory cuts and sports-focused product launches are driving renewed revenue and retail momentum.
  • Risks remain as $1.5B in tariffs and weak China and digital sales could materially pressure Nike’s margins.
  • Canada Goose shows DTC growth and lower inventory but is still loss-making and a higher-risk turnaround bet.

Why do it?

The new slogan for Nike (NYSE:NKE) may be referring to sports, but when it comes to investing the same question applies. Why invest in this stock? Because it has already demonstrated that it can remain a top titan even after all these years. And that was seen yet again as NKE stock saw a major rebound on the market this week. Yet it’s not the only option out there. So let’s look at whether, when it comes to investing in Nike, you should “just do it” or look elsewhere.

What happened

Nike stock surged this week while management pivoted back to sport performance, clearing out the old lifestyle inventory and seeking massive double-digit growth in running, training, and basketball in North America. The retailer reported a surprise in quarterly revenue, with inventory reduced while still seeing product and retail momentum. However, tariffs hit hard.

Nike now estimates a US$1.5 billion hit compared to a previously stated US$1 billion, which will be a drag on margins. China remains soft, with competition climbing and Nike’s digital revenue falling 12% in the quarter. Yet the company has taken this as a sign to change rather than hope for the best.

Now, Nike is going through a turnaround. The retailer is improving its product mix and inventory control. However, headwinds remain from China softness and U.S. tariffs, and new inventory won’t be risk-free. Therefore, this could be a solid core holding, and one that won’t come cheap, trading at 32 times earnings. Though it does offer a 2.3% dividend yield.

GOOS

Taking all that into consideration, perhaps investors would prefer a strong Canadian option, and Canada Goose Holdings (TSX:GOOS) could be it. The company also reported strong first-quarter 2026 earnings, with revenue up 22% year-over-year and direct-to-consumer revenue up 23.8%. However, as with Nike, inventory fell by 9% to $439.5 million.

That being said, this performance could also be a sign of a rebound to come. The company continues to expand, redesigning stores and running huge market campaigns as the winter and Spring/Summer campaigns ramp up. Yet again, this is based on “could be” rather than “will be,” and right now the Canadian retailer is still reporting an adjusted net loss of $88.2 million, though debt improved dramatically from $766 to $542 million year over year.

All considered, Canada Goose stock is a higher-risk Canadian play. The brand is improving, especially with revenue and direct-to-consumer strength, but it’s still operating at a loss. Therefore, it’s not a buy-and-forget, but one that could provide some small exposure to large short-term growth in a turnaround scenario.

Bottom line

Both of these retailers are expensive, and both could be strong turnaround stories. Yet also true is that tariffs and China could continue to harm both operations. Meanwhile, Nike stock provides modest income and a downside cushion, whereas Canada Goose stock is more of a recovery story. So, is it a good Canadian option? Sure, but with higher risk. So, as always, speak with your financial advisor before making any investment decisions.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Nike. The Motley Fool has a disclosure policy.

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