Despite the fact that it still sits in the top spot in its space, engineering a rebound might take time. In its latest quarterly report, management didn’t provide any guidance. For that, we’ll have to wait until the new CEO strategizes the company’s way forward.

Some of the declines Nike endured during its fiscal first quarter were actually intentional — the expected results of the company pivoting away from some of its previous strategies. For example, it cut the amount of inventory going to its direct-to-consumer channels so that it could shift more to its retail partners. It’s also beefing up its innovation program — that entails cutting of some of its legacy products.

Nike is operating in a competitive environment, and rivals like Lululemon and On Holding have captured market share from it in recent years. Management said that its spring order books were about flat year over year — lighter than expected — and warned that the company will have to get through a challenging period ahead before it can spring forward and start recapturing some of that lost market share.

Long-term investors might want to follow Ackman into a Nike position, but don’t make it a large one, and don’t expect it to reward you overnight.

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Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Lululemon Athletica and Nike. The Motley Fool recommends On Holding and Skechers U.s.a. The Motley Fool has a disclosure policy.

Bill Ackman Is Piling Into Nike Stock: 3 Things Investors Need to Know was originally published by The Motley Fool