Nike Stock Now Trades 80% Below Its Record High -- Telsey Says Turnaround Has Yet To Lift Sales

Baird downgraded NIKE (NKE), Dick's (DKS), adidas, Rocky Brands, and VF Corp to Neutral, citing consumer spending concerns due to oil prices and interest rates. NIKE and DKS are interconnected, with NIKE products making up 31% of DKS's merchandise. DKS shares fell 30% in August after lowering full-year expectations. Hedge fund holdings in DKS increased, while NIKE saw a decline. Baird's report suggests potential structural demand weakness in the footwear segment.

Kylian Mbappé, a top footballer, has reportedly left Nike and signed with On, a Swiss sportswear brand. Mbappé's deal includes On shares, making him a part-owner. Nike's Q4 revenue declined 4% to $10.97 billion, and its share price has dropped about a third in six months. On, backed by Roger Federer, is expanding into football and other sports, with strong gross margins and retail growth.

UBS analyst Jay Sole lowered Nike's (NKE) price target by 13% to $42, citing expected earnings cuts and weak guidance. UBS forecasts Q1 EPS of $0.39, below consensus, and projects Q2 EPS guidance below estimates. The firm notes deteriorating demand trends in key markets and a 30% projected decline in Converse sales. Short interest in Nike shares reached a five-year high of 6.4% of equity float.

Global stocks were mixed Friday, with the Dow slightly down and Nasdaq up. European markets fell 1.5%. The Bank of Japan raised rates to 1.25%, but the yen weakened. Nike dropped 2.3% after Kylian Mbappe signed with On. Investors expect more Fed rate hikes, boosting bond yields.

Nike (NKE) added LVMH executive Alexandre Arnault to its board as it seeks to revive growth. Stock rose 1% overnight but is down 3% this week. Revenue fell 2% in fiscal 2026 to $46.4B. CEO Elliott Hill focuses on product innovation and consumer engagement. Q1 2027 results expected Oct 1 with projected revenue of $11.35B and EPS of $0.45.

Kylian Mbappé leaves Nike after 20 years to join On, a Swiss sportswear company entering soccer. Warren Buffett steps down as Berkshire Hathaway chairman after 60 years, with his son Howard succeeding him. Brad Pitt will return for a 'World War Z' sequel. Universal Music Group and Sony Music file a second lawsuit against AI music platform Suno for copyright infringement. Disney appoints Karandeep Anand, a former Meta and Microsoft executive, as its first-ever chief technology officer.