What Analysts Consider Nike Inventory Forward of Earnings

Nike (NKE) is slated to publish its ultimate earnings report of its 2025 fiscal 12 months after the market closes Thursday, with analysts anticipating falling gross sales and income because the attire maker works on its turnaround plan.

Nike is projected to report a 15% drop in quarterly income from the identical time final 12 months to $10.71 billion. Earnings per share are additionally anticipated to have dropped to $0.12 from $0.99 a 12 months in the past. The corporate warned in March that it could seemingly take a gross sales hit within the fourth quarter from the Trump administration’s tariffs and from its turnaround plan. New CEO Elliott Hill, who took over final October, has mentioned Nike must give attention to innovating with new merchandise, because it manages the stock of older legacy traces of sneakers and clothes.

Of the 17 analysts protecting Nike tracked by Seen Alpha, eight name the inventory a “purchase,” whereas one other eight say it is a “maintain,” and only one charges it a “promote.” These analysts have a median value goal of $72, which is close to the place Nike shares began the 12 months, suggesting analysts suppose the inventory can get well most of its misplaced worth. The inventory has fallen about 21% in 2025 to date.

Analysts Concentrate on Nike’s Outlook Over This fall Efficiency

In a be aware previewing Nike’s report, Morgan Stanley analysts not too long ago minimize their value goal to $61 from $70, saying they anticipate Nike’s turnaround plan may take longer than anticipated because it faces macroeconomic pressures and uncertainty round tariffs.

“Whereas our newest wholesale & specialty run checks advised mgmt.’s preliminary technique execution is heading in the right direction, we concurrently view the street to improved fundamentals as lengthy(er) than prior & nonetheless extremely risky,” the analysts wrote.

Financial institution of America analysts, with a extra bullish $80 value goal, mentioned they are going to be extra targeted on Nike’s outlook than fourth-quarter outcomes, whereas noting that “it is unclear what different steerage will probably be given past 1Q” contemplating the macro uncertainty. Executives might want to present readability to buyers on when Nike will probably be by means of its extra stock, and when gross sales and income will be capable to return to progress, they wrote.