NKE Stock Cracks Premarket: Analysts Slash Targets On Weak Outlook – Citi Calls Nike A ‘Cost-Cutting’ Story

• BofA cut its Nike price target to $24 from $30 and lowered its FY27 and FY28 EPS estimates by 21% and 22%, respectively, citing limited visibility on a sales turnaround.
• Goldman Sachs lowered its price target to $30 from $38, saying weakness in Sportswear, Jordan and China is more than offsetting healthy Performance growth.
• Nike expects fiscal 2027 revenue to decline by a high-single-digit percentage, while Greater China revenue fell 26% on a currency-neutral basis in Q1.

Nike Inc. (NKE) is facing a fresh wave of analyst scrutiny after multiple Wall Street firms cut their price targets following its fiscal Q1 results, according to The Fly. The athleticwear giant’s earnings beat failed to offset a weaker-than-expected outlook, and CEO Elliot Hill added that the turnaround would take more time. 

NKE shares were down nearly 10% in premarket trading on Friday after falling 8.7% in after-hours trading on Thursday. 

Analysts Flag Nike’s Key Headwinds

According to The Fly, Wells Fargo analyst Ike Boruchow maintained an 'Equal Weight' rating but said Nike’s first-quarter performance was worse than expected. The firm pointed to headwinds across Jordan, Sportswear and China, arguing that the pressure on those businesses is weighing heavily on Nike’s financial performance and leaving visibility low. Wells Fargo lowered its price target to $30 from $40.

Citi maintained a 'Neutral' rating while cutting its price target to $32. According to The Fly, Citi said Nike delivered a Q1 earnings beat despite weaker sales and better expense control. The firm also said Nike's fiscal 2027 sales guidance for a high-single-digit decline is below market expectations. Citi described Nike as 'turning into a cost-cutting story' and said it does not believe the stock warrants a premium multiple relative to peers.

BofA maintained an 'Underperform' rating and lowered its price target to $24 from $30. According to The Fly, the firm said visibility on a sales turnaround remains limited following the earnings report. BofA also cut its fiscal 2027 and fiscal 2028 EPS estimates by 21% and 22%, respectively, and said it continues to see downside risk to Nike's premium multiple until the timing of a revenue inflection becomes clearer.

Goldman Sachs maintained a 'Neutral' rating and lowered its price target to $30 from $38. According to The Fly, the firm said Nike's fiscal 2027 guidance came in materially below expectations, with weakness in Sportswear, Jordan and China more than offsetting healthy Performance growth. Goldman also said the Pace transformation plan and resulting deleverage are expected to pressure fiscal 2027 and fiscal 2028 margins and earnings, leaving the key question around Nike's fiscal 2028 earnings power and whether fiscal 2027 represents the trough or another step-down.

According to Koyfin data, 26 of the 42 analysts covering NKE rate the stock ‘Hold’, while 10 analysts rate it either ‘Buy’ or ‘Strong Buy’.

Nike's Q1 Earnings Highlights

Nike reported fiscal Q1 revenue of $11.2 billion, down 4% year over year on a reported basis and 5% on a currency-neutral basis. Diluted EPS came in at $0.48, while gross margin expanded 60 basis points to 42.8%. Selling and administrative expense fell 3% to $3.9 billion.

NIKE Direct revenue fell 8% to $4.1 billion, while NIKE Brand Digital declined 13%. Greater China revenue dropped 26% on a currency-neutral basis, while Nike's performance portfolio grew at a high-single-digit rate.

Nike ended the quarter with $7.8 billion in inventory, down 3% year over year. For fiscal 2027, the company expects revenue to decline by a high-single-digit percentage and adjusted diluted EPS to range from $1.15 to $1.35, excluding approximately $0.15 in Pace-related restructuring expenses.

CEO Elliott Hill said Nike’s turnaround will take time, with the company having more work to do across Sportswear, Jordan Brand and Greater China as it works to rebuild the business.

Retail View On NKE

On Stocktwits, retail sentiment around NKE remained ‘bullish’ over the past 24 hours, while message volume climbed from ‘high’ to ‘extremely high’ levels.

NKE shares are down nearly 42% year to date.

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