NKE Stock Recent News

It's not often that investors can find a company that's just over $100 billion in market capitalization, not to mention owning a brand that is globally recognized as premium and commoditized, trading near its yearly low prices. This is why shares of Nike Inc. NYSE: NKE have come to be as interesting as any other in the market, especially within the retail sector, despite what the recent data may suggest about the space.

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Nike (NKE -1.16%) stock is up just a few percentage points from its seven-year low -- a low that came during the worst of the pandemic-induced sell-off in 2020 when Nike stock fell below $63 per share for one day, only to rebound 15.2% the next day.

In this blog's Nike earnings preview earlier last week, it was noted that CFO Matt Friend's guidance for Nike's fiscal Q3 '25 was grim, and the inventory liquidation would likely last through fiscal Q4 '25. The gross and operating margins are going to get whacked pretty thoroughly again in Q4 '25 and then investors will likely see some revenue and margin stabilization thanks to cleaner inventory. Some think investors may not see material revenue growth until fiscal '27, which begins June 1, '26.

The Shoes & Retail Apparel industry thrives on innovation, demand and digital growth, benefiting NKE, ADDYY and BIRK, but faces rising costs and reinvestment challenges.

NKE's Q3 results and a soft Q4 outlook due to the looming effects of new tariffs and a shifting market landscape call for a cautious investment approach.

The final trades of the day with CNBC's Melissa Lee and the Fast Money traders.

NIKE, Inc.'s stock dropped 5% post-earnings despite beating consensus due to low expectations and weak consumer engagement indicators like foot traffic and app downloads. Nike's net income fell 32% YoY, with gross margin down 330 basis points, driven by increased discounts and higher input costs. Consensus estimates suggest Nike's growth will be 4-5% through 2027, lagging behind S&P 500 constituents.

Investors hoping for a turnaround at Nike (NKE -1.06%) will have to wait longer.

JD Sports Fashion PLC (LSE:JD.) shares fell on Monday as Deutsche Bank cut its target price on the retailer on the back of the Nike earnings and conference call last week.