TLDR
- Nike stock trades around $77-78, about 15% below its 52-week high as the company undergoes strategic realignment under CEO Elliott Hill
- Q4 results showed revenue down 12% and net income dropped 86%, but both beat analyst expectations, sending shares up 15%
- The company announced another round of layoffs affecting less than 1% of corporate staff as part of its “Win Now” restructuring plan
- Analysts maintain mostly positive outlook with consensus “Moderate Buy” rating and average price target of $78.59
- Next earnings report scheduled for September 30, 2025, with Q1 EPS expected to fall 61% but recovery projected for fiscal 2027
Nike stock hovers near $77-78 as CEO Elliott Hill accelerates restructuring efforts at the athletic footwear giant. The latest round of layoffs affects less than 1% of corporate staff, building on February’s 2% workforce reduction.
NKE shares closed at $77.37, trading roughly 15% below the stock’s 52-week high. Investors are weighing the company’s strategic changes against ongoing financial pressures.
The sportswear leader reported mixed Q4 results that surprised Wall Street. Revenue declined 12% year-over-year to $11.1 billion, while net income plummeted 86% to $211 million. Earnings per share dropped to $0.14 from $0.99 in the prior year period.
Despite these steep declines, both revenue and EPS exceeded analyst forecasts. The Street had expected $10.72 billion in revenue and $0.12 per share in earnings. This modest beat triggered a 15% stock rally following the announcement.
Nike’s “Win Now” realignment focuses on reducing excess inventory and repositioning digital operations toward premium pricing. The company is moving away from discounted offerings in favor of full-price products.
Revenue Breakdown Shows Mixed Results
Nike Direct sales fell 14%, driven by a 26% decline in digital channels. Physical Nike stores provided some relief with 2% growth during the quarter.
Wholesale revenue dropped 9% as inventory management adjustments continued. Gross margin compressed 440 basis points to 40.3%, pressured by higher discounts and supply chain costs.
The company maintained its quarterly dividend at $0.40 per share, extending 23 consecutive years of dividend growth. Cash and short-term investments total $9.2 billion, down $2.4 billion from last year due to share buybacks, dividends, and capital spending.
Analyst Sentiment Remains Cautiously Optimistic
Wall Street analysts have responded positively to Nike’s turnaround progress. HSBC upgraded NKE from “Hold” to “Buy” with an $80 price target, up from $60.
Bernstein raised its target to $90 from $85 while maintaining “Outperform.” Williams Trading lifted its target to $100 from $73 with a “Buy” rating. Jefferies kept its “Buy” rating with a $115 target.
Among 36 analysts covering Nike stock, 14 rate it “Strong Buy,” three “Moderate Buy,” 17 “Hold,” and two “Strong Sell.” The consensus rating stands at “Moderate Buy.”
The average price target of $78.59 suggests 5% upside potential. The highest target of $120 implies 61% gains from current levels.
Analysts project Q1 2026 EPS will fall 61% to $0.27. Full-year 2026 earnings are expected to decline 22% to $1.69. Recovery is forecast for fiscal 2027 with 53% EPS growth to $2.59.
Nike’s next earnings call is scheduled for September 30, 2025, when management will provide updated guidance on the turnaround timeline and fiscal 2026 outlook.
