Recently, the global sportswear giant announced restructuring plans.Factors such as a lack of innovation, rising competition, and macroeconomic hurdles have been weighing on margins, ultimately prompting the Beaverton, Oregon-based behemoth's management to undertake an extensive restructuring plan.
The management plans to also leverage major events like the upcoming Olympic Games to boost advertising and promote innovative new products. Nike's involvement in the NBA and the European Championships, where it supplies jerseys for teams such as France, England, and Portugal, also supports its promotional efforts, albeit on a smaller scale.
Currently, there's clear buying pressure pushing the stock price toward the upper limit of the consolidation zone. If the company delivers better-than-expected quarterly results, it could provide the perfect push for an upside breakout.