Nike Faces Bearish Outlook as Analysts Cut Earnings Estimates
Stifel analyst Peter McGoldrick has cut his earnings-per-share estimates for Nike (NKE) by $0.20 for fiscal years 2027 and 2028, citing near-term risks from increased promotional activity in the US market and weak consumer demand for new products. The Hoops Classics segment, which accounts for 18% of revenue, is also shrinking. Nike's stock has declined significantly this year amid ongoing challenges including a shift in consumer preferences, execution issues under CEO Elliott Hill, and competition from brands like On (ONON). Kylian Mbappé recently ended his partnership with Nike to join On. Nike reported fourth-quarter fiscal 2026 revenue of $11 billion, down slightly on both reported and currency-neutral bases. Earnings per share were boosted by a one-time tariff recovery benefit but remain under pressure from discounting strategies that have also impacted Dick's Sporting Goods (DKS). The company is set to be removed from the S&P 100 index after an 18-year inclusion, signaling ongoing struggles in its turnaround efforts. Analysts like Michael Binetti of Evercore ISI suggest no clear path for revenue growth or multiple expansion at this time.
Topics: consumer demand earnings estimates Nike Stifel stock performance