Nike Prepares for Key Earnings Report Amid Market Volatility
Nike Inc. is poised for a crucial quarterly earnings report today, with its stock currently at $89.13 and a cautious ‘Sell’ rating from analysts. Despite a slight increase, revenue has dropped by 6.9%. Traders are closely monitoring high implied volatility in the options market, indicating expectations of significant price movements. As geopolitical tensions impact market behavior, all eyes are on Nike’s performance and future guidance.
Nike Announces Leadership Change and Strategic Shift Amid Financial Uncertainty
Nike Inc. announces major corporate strategy changes, including the withdrawal of full-year financial guidance and the postponement of its investor day as CEO John Donahoe prepares to step down. With new CEO Elliott Hill set to take over, the company aims to reassess its business strategies amid declining revenue expectations and mixed financial results. Investors are eager for clarity on Nike’s strategic direction as it navigates this transitional phase.
Nike Stock Retreats as Sales Fall Short in Q4 Report
Nike stock fell in late Thursday trading after missing sales expectations for Q4. Despite a 50% increase in earnings to 99 cents per share, revenue dipped by 2% to $12.6 billion. Nike brand sales dropped by 1% to $12.1 billion, while Converse revenue fell by 18% to $480 million. Analysts at Oppenheimer upgraded Nike to outperform, expecting a turnaround in the second half of 2025.
Top Analyst Downgrades Nike to Sell
Top Street analyst Sam Poser of Williams Trading criticizes Nike for losing appeal and failing to make significant improvements. He predicts a slight miss in Q3 earnings and a cut in FY24 guidance, leading to a downgrade from Hold to Sell with a price target of $85, implying a downside of ~15% from current levels.