Nike's turnaround strategy faces challenges, but optimism for growth opportunities, potential outperformance in future

From Investing.com: 2024-12-20 14:47:08

Nike Inc’s turnaround strategy under new CEO Elliot Hill faces short-term challenges but could lead to recovery by 2025. Truist predicts a low-double-digit revenue decline in Q3 and gross margin pressure of 300-350 basis points. FY25 earnings forecast lowered to $2.00 per share, with a price target cut to $90.

Hill’s initiatives focus on improving wholesale partnerships, boosting direct-to-consumer business, and revamping brand marketing. Truist believes investor sentiment is improving, anticipating growth opportunities in 2026. The decision to accelerate restructuring is seen as prudent, positioning Nike for long-term success and potential outperformance in the future.



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