Nike (NKE 0.71%) stock dropped 11% in April, according to data provided by S&P Global Market Intelligence. It was up and down during the month as analysts and investors went back and forth about how it might be affected by the new tariff program.

Already struggling

Nike sells in countries all over the world, but most of its sales happen in the U.S., and much of its merchandise is produced in China and other countries impacted by new, higher tariffs.

The athletic wear giant has already been experiencing sales declines in the face of cutbacks in consumer spending, and revenue dropped 7% year over year (currency neutral) in the 2025 fiscal third quarter (ended Feb. 28). Even worse, Nike Direct revenue, which the company has been investing in to steer its brand, fell 10%. Gross margin was down 3.3 percentage points to 41.5%, and earnings per share (EPS) was $0.54, down from $0.77 the prior year.

Nike is a premium brand, but it services a bridge between a mass and affluent consumer. In better times, that provides exposure to a large swath of the population and fuels growth. Under pressure, it can lose sales from customers switching down or buying on sale.

On the last day of April, Nike got some further bad news after a Wells Fargo analyst downgraded its stock from overweight to equal weight, citing tariff and recession headwinds.

Top brand, low price

Nike is still the top athletic wear brand by far. Its total revenue is higher than nearly all its main competitors combined, and none of them have been able to significantly chip away at its lead. In fact, the industry as a whole is feeling pressure, and many of Nike's most formidable rivals are experiencing their own challenges. Nike still has more brand power than any other apparel brand in the U.S., and it's likely to rebound under better conditions.

At the current price, Nike stock trades at a forward, 1-year price-to-earnings (P/E) ratio of 27, which isn't quite cheap but is near the lowest it's been all year. It also pays a reliable, growing dividend that yields 2.7% at the current price.

Nike is a blue chip stock that could add value to a diversified portfolio, and this is an attractive entry point for long-term investors. However, it could go sideways until the environment improves.