Sportswear company Nike has had a rough patch, dropping its CEO last year ahead of the company retooling its offerings and strategy. Heading into last Thursday’s earnings, the athletic giant had lost more than a third of its value over the past year — and was down 15% year to date — amid cooling demand and tariff turmoil.

That said, if there’s one message coming out of last week, it’s that Wall Street is buying this comeback strategy.

The footwear and athletic wear company’s external challenges are very real. Nike is now facing a 30% duty on goods imported from China. Meanwhile, North America, Nike’s biggest market, has seen softer sales as upstart sneaker and athletic wear brands gain traction.

Nike was the best performer in the S&P 500 on Friday, with shares jumping 15% after the sneaker giant beat Wall Street’s earnings expectations and laid out a clearer game plan for its comeback.

Analysts also said the company is taking a more strategic approach by delaying splashy launches (like the upcoming Nike x SKIMS collab) to better time performance-led campaigns.

Friday’s 15% pop in share price was just what the company needed: Nike shares finished the week down only about 4.8% year to date. UBS analysts raised their price target from $56 to $63 (though they maintained a “neutral” rating), citing a better-than-expected sales outlook and less margin pressure from tariffs.

The Takeaway

Nike’s game plan to spend more on athletes and to get strategic about its plan to handle tariffs is exactly the kind of come-from-behind victory that the brand stakes its name on. It’s won back Wall Street; now comes the hard part of executing and actually winning back consumers.

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