NKE Stock Eyes Red Week Ahead Of FIFA World Cup: Nike’s Star-Studded Campaign Can’t Stop It From Falling

• The FIFA World Cup kicks off next Thursday with opening-day matches in Mexico City and Guadalajara.
• Nike also expanded its football strategy with the SB FC Pack, blending football and skate culture through new apparel and footwear.
• Nike expects football, basketball, and training categories to return to growth over the next few quarters.

Shares of Nike, Inc. (NKE) are set for a weekly loss despite a flurry of football-themed launches and celebrity-backed marketing ahead of the FIFA World Cup, as investors focus on the pace of Nike's broader turnaround.

NKE stock has declined 4% so far this week, poised to snap a two-week streak in the green. Shares are also on track for their worst year since 1997. 

Nike's Football Marketing Blitz

Nike officially rolled out its "Rip The Script" campaign on Thursday after teasing the project earlier this week. The campaign features Cristiano Ronaldo, Kylian Mbappe, Erling Haaland, Vinícius Junior, LeBron James, Travis Scott, Blackpink's Lisa and Kim Kardashian. Built around the tagline, "Nobody ever dreams of doing what they're told," the campaign places football at the center of Nike's marketing strategy.

The marketing push comes with the FIFA World Cup set to kick off next Thursday, when Mexico faces South Africa at Mexico City Stadium and South Korea takes on Czechia in Guadalajara. 

The effort is part of a broader football marketing from Nike that includes federation kits, Mercurial boots, and community programs related to the tournament. Nike has also expanded football-inspired launches beyond traditional performance gear. On Wednesday, Nike SB unveiled the SB FC Pack, a collection of football-inspired jerseys, footwear and apparel that blends skateboarding and football culture. The collection includes field and goalkeeper jerseys, along with Nike SB Air Max 95 and Tennis Classic footwear silhouettes.

"We always lead with the sounds of the streets," Nike SB lead graphic designer Steven Gonzalez said. "Cumbia hit the speakers, and we knew that was it." Over the past year. Nike rolled out several football collaborations spanning Jordan-branded boots, Travis Scott partnerships, federation-themed products and Cryoshot releases.

Nike's World Cup Recovery Bet

Nike pointed to football as a key pillar of its turnaround strategy in its recent March earnings call, with CEO Elliott Hill saying: "Global football is the next sport to fully transform into the sport offense."

Hill added that Nike is "utilizing the World Cup as an opportunity to catalyze the football marketplace for quarters to come" and expects to elevate its presentation in over 5,000 football retail locations worldwide by the end of the tournament. The comments came as Hill called Nike being "in the middle innings of our comeback," while reiterating that the company expects to complete its "Win Now" turnaround actions by the end of this year.

Additionally, CFO Matt Friend said: "Momentum in running continues to be strong, and we expect football, training, and basketball to return to growth over the next few quarters."

Can NKE Stage A Comeback?

Investors remain focused on Nike's turnaround efforts as the company works to accelerate growth, particularly in China, while defending market share against fast-growing rivals such as On Holding and Deckers Outdoor Corporation's Hoka brand. 

Last year, JPMorgan upgraded Nike to 'Overweight' and identified the North America-hosted FIFA World Cup as a key driver of a recovery path. "Just buy it," JPMorgan said at the time, referencing Nike's iconic slogan. The brokerage had outlined a "five-pronged multiyear recovery path," saying that inventory normalization, stronger wholesale demand, product innovation and football-related demand could help reaccelerate growth through 2026 and 2027.

JPMorgan also pointed to new running, basketball and training products as drivers of pricing power and margin recovery. The firm’s $93 price target from last year still implies over a 110% upside from current levels. Since then, several brokerages, including JPMorgan, Goldman Sachs and Piper Sandler, have become more cautious on the stock.

How Do Retail Traders Feel About NKE?

On Stocktwits, retail sentiment for NKE slipped to ‘neutral’ from ‘bullish’ levels a week ago amid a 71% decline in message volumes over the past week.

One user said, “$NKE NBA finals are on tonight, you'd think Nike would rally with all the publicity from it, but no..”

https://stocktwits.com/omgstfu/message/655346072 

Another user said, “$NKE Inject the NBA Finals and World Cup into my veins RIGHT NOW.”

NKE stock has declined 28% over the past year. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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