Nike Faces 2 Major Tests This Week. Earnings Isn't the One To Watch
Key PointsAnalysts are lowering their price targets ahead of Nike's earnings report Thursday.
Nike is set to face two major tests this week as its first-quarter earnings report approaches on Thursday. The sports apparel giant's stock has been trading at decade lows and Wall Street is lowering its expectations for a comeback. Bank of America recently downgraded the stock to underperform and slashed its price target from $47 to $30, citing downside risks to earnings over the next two years.
Three other analysts also reduced their price targets on the stock, highlighting Nike's declines over the past few months. Despite Nike's management stating that gross margin should improve in the first quarter as the company navigates tariffs and streamlines inventory, the broader industry appears to be struggling. Recent earnings reports from Lululemon and Deckers suggest that the issue extends beyond Nike.
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