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NIKE, Inc. (NKE) is a global leader in athletic footwear, apparel, equipment, and accessories, with a market cap of $112.2 billion, operating in the sports and lifestyle industry. The Beaverton, Oregon-based company's fiscal Q1 2025 ends in August 2024.
For Q1 earnings results, analysts forecast the sneaker and sportswear giant to post a profit of $0.54 per share, a notable decline of 42.6% from $0.94 per share in the same quarter last year. However, the company has consistently surpassed Wall Street's bottom-line projections in each of the past four quarters. NKE reported an EPS of $1.01 in Q4 2024, surpassing the consensus EPS estimate by a notable margin of 18.8%.
For fiscal 2025, analysts expect NKE to report EPS of $3.12, a significant decline of 21% from $3.95 in fiscal 2024. However, looking ahead to fiscal 2026, EPS is expected to rebound with a solid year-over-year growth of 13.1% to $3.53.
Over the past 52 weeks, NKE has declined 31.4%, underperforming the broader S&P 500 Index's ($SPX) 18.6% rise and the S&P 500 Cons Disc Sector SPDR's (XLY) 7.6% gain over the same period.
NIKE stock lost ground on Jun. 28. The company projected a mid-single-digit percentage drop in fiscal 2025 revenue due to weakening demand and increased competition, alongside a Q4 revenue miss. This led to a significant market reaction and a decline of roughly 20% in the stock's value.
However, the stock rebounded nearly 3% on Jul. 22 after launching its new "Winning Isn't for Everyone" ad campaign for the 2024 Summer Olympic Games, featuring high-profile athletes. The campaign's high-profile launch coincides with the start of the Olympics in Paris, generating optimism among investors that it could signal a branding turnaround and boost investor confidence amid recent challenges.
Analysts' consensus rating on NIKE stock is cautiously optimistic, with a "Moderate Buy" rating overall. Out of 30 analysts covering the stock, opinions include 14 "Strong Buys," one "Moderate Buy," 13 "Holds," and two "Strong Sells."
This configuration is less bullish than three months ago, with 17 analysts suggesting a "Strong Buy." The average analyst price target for NKE is $90.93, suggesting a modest potential upside of 22.3% from current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
