Nike stock surged 17% after strong Q4 earnings report, signaling the worst may be over.

From CNBC: 2025-06-27 14:05:00

Nike stock surged 17% after a strong fiscal fourth-quarter earnings report, signaling that the worst of its struggles may be behind. Sales dropped 12%, net income fell 86%, but CEO Elliott Hill remains optimistic that results will improve in the coming quarters. Nike plans to continue its turnaround strategies despite challenges.

The company is focusing on new product launches, winning back wholesale partners, and targeting female shoppers. Nike shares initially dropped but rebounded after reassuring investors that the turnaround plan is working. Several banks issued bullish commentary, with HSBC upgrading Nike to buy and raising its price target to $80.

Nike is still facing challenges like declining sales of classic styles, impacting profits and margins. Efforts to clear out stale lifestyle inventory have affected sales, leading to pressure on profits through the first half of fiscal 2026. The company expects profits to improve in the second half of the year.

While Nike’s profits are expected to be under pressure in the near term, the company remains cautiously optimistic about a full recovery. It’s unclear when Nike will see actual sales growth again, as challenges like higher costs from tariffs and inventory clearance continue. Nike plans to take recovery one step at a time.



Read more at CNBC: Nike stock soars after better than feared Q4 2025 results