"Nike's full-year FY2025 revenue fell 9.84%, and net income dropped 43.53%, reflecting multiple simultaneous pressures. Gross margin has compressed consistently, hitting 40.3% in Q4 FY2025, driven by tariff headwinds in North America, elevated discounting, and an inventory clearance cycle that punished profitability."
"Despite the damage, 59% of covering analysts rate Nike bullish, with a breakdown of five Strong Buys, 19 Buys, 13 Holds, one Sell, and one Strong Sell. Barclays upgraded the stock to Overweight in March with a $73 price target, citing a 'fundamental bottom' and pointing to North America stabilization as evidence that the worst is behind the company."
Nike's stock trades at $52.71, above a 52-week low, with a $76 consensus price target indicating a 44% upside. The company faces multiple pressures, including a 9.84% revenue drop and a 43.53% decline in net income for FY2025. Gross margins have compressed due to tariffs, discounting, and inventory issues. Digital revenue and sales in Greater China have also declined. Despite these challenges, 59% of analysts remain bullish, with some citing signs of stabilization in North America as a potential turnaround indicator.
Read at 24/7 Wall St.
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