Key Takeaways
- Nike shares fell Friday after the company’s predicted a larger fourth-quarter revenue decline than Wall Street expected.
- Several analysts dropped their price targets following the results, with one noting Nike’s turnaround efforts will “take time.”
- The results represented Nike’s second quarter under new CEO Elliott Hill.
Shares of Nike (NKE) tumbled Friday after the company delivered disappointing revenue guidance the day before, with several analysts opting to lower their price targets.
The sneaker giant’s turnaround effort under new CEO Elliott Hill is going to “take time,” JPMorgan analysts said, dropping their price target to $64 from $73. “We continue to anticipate a ‘crawl, walk, run’ setup,” the analysts added, with investors likely having to wait until the back half of fiscal 2026 for Nike to start walking.
On the company’s earnings call, CFO Matt Friend said Nike’s fiscal 2025 fourth-quarter sales are expected to fall in the low end of “mid-teens” year-over-year, while analysts had projected a roughly 12% decline, according to Visible Alpha. Nike’s third-quarter revenue decline was not as severe as Wall Street expected, but JPMorgan noted this year’s sales were lifted by Cyber Monday, which did not fall within Nike’s third quarter last year.
Meanwhile, UBS analysts said they “don’t believe Nike has improved its product assortment or marketing enough yet to ensure trends won’t get worse,” lowering their target to $66 from $73. Deutsche Bank trimmed its target to $77 from $80.
Nike shares fell more than 6% intraday Friday and have lost about a third of their value over the past 12 months.
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