Key takeout
- Nike is set to announce its fourth quarter revenues after the market closes on Thursday as the company embarks on turnaround strategies.
- Year-over-year sales and profits are anticipated to drop, while analysts hope management will indicate a path back to growth.
- Most analysts tracked by visible Alpha maintain a “buy” rating for Nike’s stock.
Nike (NKE) is gearing up to release its final revenue report for 2025 Thursday evening after the market wraps up. There’s a sense that sales and profits might be on the decline, as apparel companies are actively trying to pivot.
Predictions indicate a 15% decrease in quarterly revenue compared to last year, dropping to $10.73 billion. Earnings per share are projected to fall to $0.13 from $0.99 for the same period last year. The company had signaled in March that sales could be negatively impacted in the fourth quarter due to tariffs from the Trump administration and its ongoing turnaround efforts. New CEO Elliott Hill, who took the reins last October, emphasized the necessity for Nike to innovate with new products while also managing inventory from outdated lines of shoes and apparel.
Among the 17 analysts following Nike as monitored by visible Alpha, eight categorize the stock as a “buy,” while the others suggest a “hold,” with just one recommending a “sell.” The average price target across these analysts stands at approximately $72, similar to where the stock started this year. Analysts are optimistic that the stock can recover much of its lost value, although it’s down nearly 20% so far in 2025.
Analysts focus on Nike’s outlook for fourth quarter performance
A recent report from Morgan Stanley has adjusted its price target for Nike from $70 to $61. The analysts believe that the path to recovery may take longer than anticipated due to macroeconomic challenges and tariff-related uncertainties.
“Our latest checks on wholesale and specialty runs suggest that although management’s initial strategies are on course, we expect the timeframe for improvements to extend longer than anticipated amid high volatility,” the analyst noted.
Meanwhile, analysts from Bank of America have a more optimistic price target of $80. They expressed that given the uncertain economic environment, it’s “unclear what other guidance will be provided beyond the first quarter.” Furthermore, they pointed out that Nike’s executives should aim to clarify when they expect to manage excess inventory and when sales and profits might see a return to a growth trajectory.
Updated – June 25, 2025: This article has been revised to incorporate the latest analyst estimates and stock values.
