Tim Cook just gave Nike a much-needed holiday boost

• Tim Cook bought $3 million in Nike shares, nearly doubling his stake in the company.
• Nike shares jumped after Cook's purchase, signaling support for CEO Elliott Hill's turnaround plan.
• Nike faces challenges, including falling sales in China and profit hits from tariffs.

Nike has Tim Cook to thank for its warm, festive glow this Christmas.

The sneaker giant disclosed in a filing that Cook, a longtime member of Nike's board and its lead independent director, bought shares in Nike worth about $3 million.

Cook's purchase of 50,000 shares almost doubled his holdings in the company to just over 105,000 shares, or about $6 million.

Nike's stock jumped 4.64% at the close of trading on Wednesday.

Cook's investment sends a signal of support to Nike CEO Elliott Hill, who is in the middle of a plan to turn around the struggling sportswear giant.

"You buy with your own personal wealth, you put your money where your mouth is, you're making a point," said Simeon Siegel, equities research analyst at Guggenheim, in an interview on CNBC on Wednesday. "Whether it's intended as an investment or as a signal, it's there."

The company also disclosed that another board member, Robert Swan, the chair of its audit committee, bought shares worth about $500,000 this week.

Hill's steep turnaround path

Hill rejoined Nike as CEO in October last year, inheriting a company facing heightened competition from smaller players. Nike was also trying to regain its mojo after its attempt to sell directly to consumers instead of through marketplace retailers stumbled. The company had also become, in Hill's words, "far too promotional."

Hill's "win now" strategy involves focusing on five key areas: culture, product, marketing, marketplace, and in-person presence. The plan has reset the company's focus on sports, including running, basketball, football, and training. Nike's management team has undergone a revamp, with several key leaders receiving promotions.

Nike's road to recovery under Hill has been hit with obstacles. The company's shares tumbled last week after it reported a big drop in sales in China during its second-quarter earnings. Nike's profits have also been hit by tariffs this year, which the company has said it hopes to offset by raising prices for customers in the US. Nike's stock is down 18.5% in the year-to-date.

Cook has been a member of Nike's board of directors since 2005. Apple and Nike have often collaborated on products over the years, including fitness apps and Nike variations of the Apple Watch.

Cook isn't just an Apple investor — he's also shown his support for Nike on his feet. Earlier this year, Cook was spotted wearing a pair of custom Nike Vomero Plus sneakers at the reopening of an Apple store in Tokyo. The kicks were designed by Sashiko Gals, an artisan division of the Japanese brand Kuon, the designers told Business Insider's Jordan Hart. Cook also wore a different pair of one-of-a-kind Nike sneakers when he launched a new iPad lineup at an Apple event in 2024.