Can Nike Just Do It? Analyst Says Turnaround Progress Is Real, but Too Slow
Key takeaways
- Nike’s earnings outlook is tightening, with analysts cutting forecasts and warning of continued revenue pressure, especially in China and direct sales, which could keep the stock near its 52‑week low until the new…
- RBC first‑quarter revenue estimate: $11.2 billion
- RBC first‑quarter EPS estimate: $0.43
- RBC Greater China revenue decline: 15%
What happened
Nike Inc. (NYSE: NKE) is facing a cautious Wall Street outlook ahead of its fiscal first‑quarter earnings on Oct. 1, with several analysts cutting price targets and downgrading the stock. The consensus Hold rating sits at an average forecast of $43.75, but recent cuts from RBC, Deutsche Bank, Piper Sandler, Evercore ISI, Bank of America, Oppenheimer, and Barclays have lowered expectations to a range of $30–$52. RBC Capital Markets projects first‑quarter revenue of $11.2 billion, down 4.3% YoY,…
Why it matters
The earnings report will test Nike’s turnaround strategy, as analysts warn that revenue and earnings are likely to decline again. The guidance signals continued pressure on sales, especially in China and direct channels, and highlights inventory and promotional challenges that could affect gross margins and cash…
Short-term and longer-term
Short-term. Short‑term traders should watch the Oct. 1 earnings for any surprise in revenue or EPS that could move the stock away from its 52‑week low. A better‑than‑expected margin or inventory turn could lift the share price,…
Longer-term. Long‑term investors should focus on Nike’s strategic turnaround, inventory management, and the new CFO’s ability to reset expectations.