
NIKE (NKE) Stock Forecast & Price Target
NIKE (NKE) Analyst Ratings
Bulls say
Nike's operational expenditures (OpEx) increased by approximately 1% year-over-year in the second quarter, driven mainly by a 13% rise in Demand Creation costs, reflecting heightened investment in brand and sports marketing. The company reported a modest revenue increase of 1% for the Nike Brand, while constant currency sales exhibited a growth of around 6%, underscoring the brand's resilience and adaptability in the market. Notably, North America demonstrated a significant turnaround, with revenue growth of 9% and projections for continued improvement, supported by wholesale gains and a strategic reduction in direct sales, laying a solid foundation for future growth.
Bears say
Nike management reported a significant decline of over 20% (approximately $550 million) in year-over-year revenue for the second quarter, with a gloomy outlook for the third quarter, projecting a low single-digit percentage decline in revenue against Street forecasts expecting modest growth. The company is facing heightened competitive pressures, leading to market share losses and increased margin compression, particularly in North America, where operating margins contracted by approximately 410 basis points year-over-year. Furthermore, Nike's gross margin fell by 300 basis points to 40.6% for the quarter, further highlighting ongoing challenges such as higher off-price sales and promotional activity across regions, contributing to deteriorating financial performance.
This aggregate rating is based on analysts' research of NIKE and is not a guaranteed prediction by Public.com or investment advice.
NIKE (NKE) Analyst Forecast & Price Prediction
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