Nike Faces Q4 Revenue Decline, Inventory Challenges Amid Recovery Efforts

Nike is facing a challenging period with expectations of a 15% revenue decline and an 88% drop in adjusted earnings for its fiscal fourth quarter, marking the fifth consecutive quarter of declines amid excess inventory issues. Despite near-decade low stock prices and a 20% drop in 2025, analysts remain optimistic about Nike's long-term turnaround, highlighting progress in inventory cleanup, innovation in core product lines, and renewed wholesale partnerships, including direct selling via Amazon. Investors are closely watching Nike's ability to clear inventory, with the company targeting the end of November to be mostly clear, and looking for any positive guidance on sales inflection and tariff impacts amid ongoing uncertainty. Technical indicators suggest vulnerability in Nike's stock, but bullish analysts at Jefferies and others maintain a buy rating, forecasting a potential V-shaped recovery by fiscal 2027. Nike's leadership transition to CEO Elliott Hill and ongoing strategic efforts to rebalance inventory and restore consumer demand are key focal points as the company navigates this critical phase. Overall, while near-term earnings pain is expected, there is cautious optimism around Nike's revival efforts and long-term growth prospects.