Data News > Nike Faces Challenges as Analysts Lower Forecasts

Nike Faces Challenges as Analysts Lower Forecasts

By KlickAnalytics Data Insights  |   October 2, 2024 10:01AM ET

Key Points

- Top Wall Street analysts are changing their outlook on Nike
- Nike has been steadily losing market share to competitors
- Nike shares dropped about 6% in premarket trading after withdrawing annual revenue target
- New CEO Elliott Hill faces challenges in turning around the company
- Nike reported better-than-expected earnings but stock fell as full-year guidance was withdrawn

Nike, the athletic gear maker, is facing challenges as top Wall Street analysts lower their outlook on the company. Despite taking a step in the right direction, analysts believe that Nike is still not out of the woods. The company has been losing market share to competitors and may face difficulties in the upcoming Spring 2026 fashion cycle.

In Wednesday's pre-market session, Nike reported weak sales, joining other big stocks like Lamb Weston in moving lower. The company's shares dropped about 6% after withdrawing its annual revenue target, leaving investors unsure about the timeline for a turnaround under incoming CEO Elliott Hill. Hill is expected to face a tough task ahead in reviving the brand and restoring investor confidence.

Despite reporting impressive Q1 2025 earnings results with a 34.9% earnings per share beat, Nike's stock sank 5.6%. The company's decision to withdraw its financial forecast for the full year and postpone its investor day raised red flags among investors. Analysts believe that Nike may need more time to get off the sidelines and fully implement its turnaround plans.

Nike is facing challenges as it struggles to regain market share and restore investor confidence under new leadership. The company's decision to withdraw its financial forecast has left investors uncertain about the future of the sportswear giant.

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