Nike's Turnaround Takes Time: Shares Slump After Weak Q1 Outlook

Nike's (NKE) premarket performance took a hit after the release of its fiscal Q1 results, with shares plummeting nearly 10% on Friday. Despite beating earnings expectations, the company's weak outlook and pressure across key categories led multiple Wall Street firms to lower their price targets.

Citi described Nike as 'turning into a cost-cutting story,' and maintained a 'Neutral' rating while cutting its price target to $32 from $39. BofA also cut its price target to $24 from $30, citing limited visibility on a sales turnaround, and lowered its FY27 and FY28 EPS estimates by 21% and 22%, respectively.

Nike's revenue fell 4% year over year on a reported basis and 5% on a currency-neutral basis in Q1, with Greater China revenue dropping 26%. The company expects fiscal 2027 revenue to decline by a high-single-digit percentage. CEO Elliot Hill emphasized that the turnaround will take time, with more work needed across Sportswear, Jordan Brand, and Greater China.