Nike (NYSE: NKE) has been a great stock to investors who are long term players. As the company churns out more an more successful sneakers and athletic apparel, Nike stock has responded, making investors a nice sum of money.

But with the landscape of retail changing, Nike stock is caught in the crosswinds. It needs to take steps to ensure it can remain a force in the athletic apparel industry and continue to reward investors.

Can Nike do this? Or will they just be another sad story of demise? Read on to find out what Nike is doing to make certain is remains a viable, profitable company.

Nike Stock By The Numbers

In March, Nike reported earnings and on the surface, things looked good. Earnings per share came in at $0.68, which beat estimates by $0.15 and revenue came in at $8.43 billion, in line with estimates and and increase of 5% compared to the prior year.

But investors saw something different and sold off the stock. US growth continues to slow as retailers struggle to bring consumers into their stores.

They also saw stiffer competition from athletic apparel companies too, taking away some of Nike’s stranglehold on the industry.

The Future Of Nike

While some companies might keep plugging along with these decent earnings numbers, Nike is being proactive in trying to fix things before they turn into big trouble for the company.

Their first move was to partner with Amazon. Nike will begin to sell shoes directly on the ecommerce site. Doing so will help to slow down the rise of counterfeit Nike shoes for sale from third parties on the site. Plus, doing so helps Nike stock with being a more direct to consumer brand.

Second, pushing forward with the direct to consumer plan, the company cut close to 2,000 jobs.

Finally, the company is working to not only bring their shoes to market faster, but also develop a direct connection with consumers so they become more loyal to the Nike brand.

What Does The Future Look Like For Nike Stock?

The future looks bright for Nike stock. By selling on Amazon, the company will be able to sell directly to consumers easier and more efficiently instead of trying to build its own ecommerce business. Also, by selling on Amazon, Nike can take a big step towards limiting the number of counterfeit shoes on the online retailer. This will only help to improve sales.

While it is yet to be seen how the faster to market idea and brand loyalty will work out, Nike is still a solid, profitable company. Even with the sour US growth, international growth was up 8%.

And recently Nike reported fourth quarter earnings. Earnings per share came in at $0.60, beating estimates by $0.10 and revenues came in at $8.68 billion, beating estimates by $40 million, and again rising by 5%.

So while 5% growth doesn’t look great coming from a company that has been growing sales at a faster clip, the company is still growing, and growing at a healthy clip for a mature company.

Final Thoughts

Overall, Nike stock is a great buy for investors looking for the long term. The company is still profitable even with slowing US growth, but the company is being proactive about things and making changes to prevent any major suffering of the revenues or the stock price.

I feel that investors overreacted to the slowing US sales growth back in March. And by looking at the chart of Nike, you can see that most others agree. Since the pullback, shares have surged to over $60 a share.

Does this mean you missed out on buying a high quality company? Not in the least. As the partnership with Amazon begins to take hold and Nike starts to bring shoes to market faster, revenue and sales growth should continue to rise. And along with that so too should the stock price.

This author has no positions in any stock mentioned and does not plan to open any positions in any stocks mentioned for at least 72 hours after publication of this article.

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