While Nike did beat analyst estimates, its Q4 guidance indicated that performance would get even worse. The company sees revenue falling in the mid-teens, which includes the effect of unfavorable shipment timing, and it expects gross margin to fall 400 to 500 basis points, which includes the effect from new tariffs.

For long-term investors, the primary goal of investing is to generate solid returns that outpace the broader market. However, those who invested in Nike (NKE) over the past five years have experienced the opposite,