The road to Nike's turnaround looks bumpier after its latest quarterly report.
Shares of Nike Inc (NYSE:NKE, XETRA:NKE) tumbled more than 15% on Wednesday after a weaker-than-expected earnings outlook analysts across Wall Street warning that a turnaround may take longer than anticipated. Bank of America cut its rating on Nike to “Neutral” from “Buy,” saying the company's recovery timeline has been pushed out as management now expects sales to remain negative through the third quarter of fiscal 2027.
Nike may have beat Wall Street's fiscal 2026 third quarter earnings expectations but it wasn't enough to win over investors losing patience with CEO Elliott Hill's turnaround. The sneaker giant expects sales to be down for the rest of the year and its recovery in China to last through fiscal 2027, slated to end next spring.
If you're looking for a way to play Nike's eventual turnaround, buy Dick's Sporting Goods shares, Oppenheimer said.
The road to Nike's turnaround looks bumpier after its latest quarterly report.
Nike Inc (NYSE:NKE, XETRA:NKE) shares fell more than 14% on Wednesday as the athletic apparel and footwear maker reported unchanged quarterly revenue from a year ago and signalled caution for the months ahead. Nike's guidance for the fourth quarter points to revenue declining by 2% to 4%, while Wall Street analysts had been expecting 2% growth.
NKE's Q3 results beat estimates with flat revenues and lower EPS, while tariff-driven costs squeeze margins and pressure shares despite wholesale growth.
Stock futures are rising this morning after major indexes surged yesterday on hopes that the Iran war could end soon; stocks are coming off their worst quarter in four years amid concerns about the impact of the war and uncertainty about AI; Nike shares are plunging after the athletic apparel giant issued a weak sales forecast; Iran has threatened to attack over a dozen major American companies if the U.S. continues to assassinate Iranian officials; and investors are keeping close tabs on economic data ahead of the release of the jobs report later this week. Here's what you need to know today.
Nike, Inc. is upgraded to Buy as the stock trades below intrinsic value, offering a solid margin of safety. Despite near-term macro and operational headwinds, NKE's fundamentals remain strong and its balance sheet robust. Turnaround efforts are progressing, but management emphasizes recovery will take time and is dependent on both internal execution and external factors.
Nike (NYSE:NKE) shares are down 11% in early Wednesday trading, reacting to a quarterly earnings report that beat estimates on the surface but delivered a forward outlook that rattled investors.
Nike is attempting to turn things around, but it could be a long road to success.
Nike (NYSE: NKE) stock is down more than 9% in pre-market trading on Wednesday, April 1, hovering around the lowest levels in more than a decade following a mixed earnings report.