Nike Slows Sales Decline as CEO Clears Inventory, Boosts Outlook

Nike is showing signs of recovery as it works through inventory clearance and prepares for new product launches, leading to a slowdown in sales declines and improved margin prospects. Bank of America Securities analyst Lorraine Hutchinson reiterated a Buy rating on Nike stock, citing expected sequential sales improvement, a return to growth in the second half of the fiscal year, and potential gross margin gains despite ongoing headwinds. The company’s inventory levels have remained steady year-over-year at $7.5 billion, reflecting consistent stock management, while the wholesale segment is showing promising revenue growth. Nike’s recent quarterly revenue fell 11%, less than analysts anticipated, signaling a milder slump than previously expected. Market consensus reflects optimism, with an average analyst price target around $71 and a broad Outperform recommendation from brokers. Overall, Nike’s steady inventory, improving sales outlook, and strong innovation pipeline underpin positive investor sentiment and expected future growth.