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Nike Inc (NKE)
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Nike (NKE) AI Stock Analysis

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NKE

Nike

(NYSE:NKE)

Rating:77Outperform
Price Target:
$83.00
▲(8.14%Upside)
Nike's strong technical indicators and strategic management initiatives are key positives, offsetting some financial challenges like declining revenue and equity. The company's ability to innovate and adapt to market conditions supports a robust outlook.
Positive Factors
Competitive Advantage
NKE's size and budget should prove a key long-term competitive advantage.
Market Position
Nike is expected to maintain its dominance in the athletic apparel and footwear markets, especially in high-end footwear.
Strategic Partnerships
Nike's latest partnership with Kim Kardashian for 'NikeSKIMS' targets women's fitness and activewear, with the first collection to debut in Spring 2025 and global expansion to follow in 2026.
Negative Factors
Inventory Management
Nike has been struggling with inventory management challenges.
Market Challenges
Nike's revenue in Greater China fell significantly, impacting overall performance.
Market Preferences
Over-reliance on core franchises like AF1, AJ1, and Dunk has contributed to Nike's struggles as consumer preferences shifted toward running and lower-profile silhouettes.

Nike (NKE) vs. SPDR S&P 500 ETF (SPY)

Nike Business Overview & Revenue Model

Company DescriptionNIKE, Inc., together with its subsidiaries, designs, develops, markets, and sells men's, women's, and kids athletic footwear, apparel, equipment, and accessories worldwide. The company provides athletic and casual footwear, apparel, and accessories under the Jumpman trademark; and casual sneakers, apparel, and accessories under the Converse, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell trademarks. In addition, it sells a line of performance equipment and accessories comprising bags, socks, sport balls, eyewear, timepieces, digital devices, bats, gloves, protective equipment, and other equipment for sports activities under the NIKE brand; and various plastic products to other manufacturers. The company markets apparel with licensed college and professional team, and league logos, as well as sells sports apparel. Additionally, it licenses unaffiliated parties to manufacture and sell apparel, digital devices, and applications and other equipment for sports activities under NIKE-owned trademarks. The company sells its products to footwear stores; sporting goods stores; athletic specialty stores; department stores; skate, tennis, and golf shops; and other retail accounts through NIKE-owned retail stores, digital platforms, independent distributors, licensees, and sales representatives. The company was formerly known as Blue Ribbon Sports, Inc. and changed its name to NIKE, Inc. in 1971. NIKE, Inc. was founded in 1964 and is headquartered in Beaverton, Oregon.
How the Company Makes MoneyNike primarily generates revenue through the sale of its athletic footwear, apparel, and equipment, which are distributed through a combination of wholesale customers, direct-to-consumer sales, and digital platforms. Wholesale distribution involves selling products to retail partners such as sporting goods stores and department stores, which then sell to consumers. The direct-to-consumer segment includes sales through Nike's own retail stores and e-commerce platforms, which have become increasingly significant. Key revenue streams for Nike also include the Nike Brand, which encompasses its flagship products, and the Converse brand, known for its iconic sneakers. Nike's earnings are further supported by strategic partnerships and endorsements with high-profile athletes and sports teams, which enhance brand visibility and consumer engagement.

Nike Key Performance Indicators (KPIs)

Any
Any
Revenue by Segment
Revenue by Segment
Analyzes revenue from different business segments, highlighting which product lines or services are driving growth and where there might be opportunities or challenges.
Chart InsightsNike's footwear and apparel segments are experiencing a downward trend, with footwear showing a sharper decline. Despite this, the earnings call highlights positive momentum in wholesale orders, particularly in North America and EMEA, suggesting potential recovery. However, challenges persist in Greater China, with a 20% revenue drop, and new tariffs are expected to pressure margins further. Nike's strategic focus on innovative product launches and partnerships, like with Amazon, aims to counteract these pressures and drive sustainable growth.
Data provided by:Main Street Data

Nike Earnings Call Summary

Earnings Call Date:Jun 26, 2025
(Q4-2025)
|
% Change Since: 22.72%|
Next Earnings Date:Sep 25, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of strategic advancements and significant financial challenges. While NIKE is making tangible progress with innovative product launches and improving its wholesale order book, the call highlighted substantial revenue declines and ongoing struggles in key markets like Greater China. Additionally, new tariffs are introducing a substantial financial burden, though mitigation efforts are underway.
Q4-2025 Updates
Positive Updates
Innovative Product Launches
NIKE launched innovative products such as the Vomero 18, which quickly became a $100 million-plus franchise. The women's basketball business expanded by more than 50% this fiscal year, highlighted by the successful launch of A'ja Wilson's Signature Collection, which sold out in 3 minutes.
Wholesale Order Book Improvement
NIKE's holiday order book is up, indicating growing confidence from wholesale partners. North America, EMEA, and APLA showed growth in orders, offsetting challenges in Greater China.
Resilient Marketplace Strategy
NIKE is expanding its distribution through strategic partnerships, including a new partnership with Amazon. The company is also making progress in cleaning up the marketplace, especially in North America and EMEA.
Negative Updates
Revenue and Margin Decline
Q4 revenues declined 12% on a reported basis and 11% on a currency-neutral basis. Gross margins also fell by 440 basis points to 40.3%, primarily due to higher wholesale discounts and supply chain cost deleverage.
Challenges in Greater China
Revenue in Greater China declined 20%, with significant impacts from inventory resets and promotional challenges. The region requires more time to recover compared to other geographies.
Impact of New Tariffs
Newly issued tariffs present a $1 billion cost headwind, impacting gross margins by 75 basis points for fiscal '26. The company is taking steps to mitigate this impact over time.
Company Guidance
During NIKE, Inc.'s Fiscal 2025 Fourth Quarter Conference Call, the company provided guidance for the upcoming fiscal year, focusing on its strategic "Win Now" actions and sport offense realignment. In fiscal '26, NIKE anticipates a mid-single-digit revenue decline in Q1, with gross margins down by 350 to 425 basis points, partly due to new tariffs, which are expected to have a 75 basis point impact on gross margin for the entire year. The company's holiday order book is up, indicating positive momentum in wholesale, particularly in North America, EMEA, and APLA. NIKE's inventory management is on track, with expectations to exit the first half of fiscal '26 in a healthy state. The company is also working on mitigating a $1 billion tariff cost over time through various strategies, including optimizing its sourcing mix and implementing surgical price increases. While Greater China remains challenging, with a 20% revenue decline in Q4, NIKE is focused on refreshing its brand presence and product offering in the region. The company remains committed to returning to sustainable profitable growth, leveraging its strong brand portfolio and market presence.

Nike Financial Statement Overview

Summary
Nike exhibits strong profitability with solid gross and net profit margins and good cash generation capabilities. However, revenue and stockholders' equity have declined, highlighting potential challenges that need addressing.
Income Statement
78
Positive
Nike's income statement shows strong profitability with a gross profit margin of approximately 42.7% and a net profit margin of 7.0% in TTM (Trailing-Twelve-Months). However, there is a noticeable decline in total revenue year-over-year by around 9.8%, affecting the overall revenue growth negatively. The EBIT and EBITDA margins have also decreased, indicating some operational challenges. Despite these, the company's margins remain strong, suggesting efficient cost management.
Balance Sheet
72
Positive
The balance sheet highlights a moderate debt-to-equity ratio of 0.83, suggesting a balanced financial leverage. The return on equity (ROE) is 24.4%, which shows good profitability relative to shareholder equity. However, there's a slight decrease in stockholders' equity compared to the previous year, which could be a concern if it continues. The equity ratio stands at 36.1%, indicating a solid position but room for improvement in equity compared to total assets.
Cash Flow
75
Positive
The cash flow statement reflects a robust free cash flow of $3.27 billion in TTM with a free cash flow to net income ratio of 1.01, indicating a healthy conversion of profits into cash. However, the free cash flow has decreased compared to the previous year, suggesting potential pressure on cash generation. Operating cash flow to net income ratio is 1.15, underscoring strong cash generation capabilities.
BreakdownJun 2025Jun 2024Jun 2023Jun 2022Jun 2021
Income Statement
Total Revenue46.31B51.36B51.22B46.71B44.54B
Gross Profit19.79B22.89B22.29B21.48B19.96B
EBITDA3.88B7.16B6.77B7.51B7.73B
Net Income3.22B5.70B5.07B6.05B5.73B
Balance Sheet
Total Assets36.58B38.11B37.53B40.32B37.74B
Cash, Cash Equivalents and Short-Term Investments9.15B11.58B10.68B13.00B13.48B
Total Debt11.02B11.95B12.14B12.63B12.81B
Total Liabilities23.37B23.68B23.53B25.04B24.97B
Stockholders Equity13.21B14.43B14.00B15.28B12.77B
Cash Flow
Free Cash Flow3.27B6.62B4.87B4.43B5.96B
Operating Cash Flow3.70B7.43B5.84B5.19B6.66B
Investing Cash Flow-275.00M894.00M564.00M-1.52B-3.80B
Financing Cash Flow-5.82B-5.89B-7.45B-4.84B-1.46B

Nike Technical Analysis

Technical Analysis Sentiment
Positive
Last Price76.75
Price Trends
50DMA
65.97
Positive
100DMA
64.70
Positive
200DMA
70.23
Positive
Market Momentum
MACD
2.73
Positive
RSI
69.42
Neutral
STOCH
85.37
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NKE, the sentiment is Positive. The current price of 76.75 is above the 20-day moving average (MA) of 72.59, above the 50-day MA of 65.97, and above the 200-day MA of 70.23, indicating a bullish trend. The MACD of 2.73 indicates Positive momentum. The RSI at 69.42 is Neutral, neither overbought nor oversold. The STOCH value of 85.37 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NKE.

Nike Risk Analysis

Nike disclosed 40 risk factors in its most recent earnings report. Nike reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Nike Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$1.97B11.7019.51%3.10%10.17%-4.71%
77
Outperform
$111.34B34.8423.29%2.57%-9.70%-42.38%
76
Outperform
$15.79B16.6841.82%16.22%29.52%
74
Outperform
$5.96B6.5253.70%2.09%26.18%
73
Outperform
$9.34B34.599.35%18.55%147.70%
72
Outperform
$9.46B15.2114.67%10.66%9.44%
63
Neutral
$17.14B11.11-7.24%3.14%1.68%-25.43%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NKE
Nike
76.75
7.15
10.27%
CROX
Crocs
108.79
-20.59
-15.91%
DECK
Deckers Outdoor
108.09
-32.92
-23.35%
SKX
Skechers USA
63.23
-0.79
-1.23%
SHOO
Steven Madden
27.00
-15.06
-35.81%
BIRK
Birkenstock Holding plc
51.06
-4.36
-7.87%

Nike Corporate Events

Executive/Board ChangesShareholder Meetings
Nike Nominates Jørgen Vig Knudstorp to Board
Positive
Jun 25, 2025

On June 24, 2025, NIKE, Inc. announced the nomination of Jørgen Vig Knudstorp for election to its Board of Directors at the upcoming annual meeting on September 9, 2025. Knudstorp, with extensive experience in brand and digital marketing, strategy, and consumer products from his tenure at LEGO, is expected to contribute significantly to NIKE’s growth and brand storytelling initiatives.

The most recent analyst rating on (NKE) stock is a Hold with a $71.00 price target. To see the full list of analyst forecasts on Nike stock, see the NKE Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Nike Board Member Cathleen Benko Announces Retirement
Neutral
Jun 18, 2025

On June 13, 2025, Cathleen Benko announced her retirement from Nike‘s Board of Directors, effective at the company’s 2025 annual shareholder meeting. Her departure is amicable, with no disagreements with the company, and she is commended for her contributions over the past seven years.

The most recent analyst rating on (NKE) stock is a Hold with a $71.00 price target. To see the full list of analyst forecasts on Nike stock, see the NKE Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Nike Announces Major Leadership Restructuring for Growth
Positive
May 5, 2025

On May 5, 2025, Nike, Inc. announced significant changes to its Senior Leadership Team to support its ‘Win Now’ action plan and future growth. The company eliminated the President, Consumer, Product & Brand role, leading to Heidi O’Neill’s retirement after 26 years. The leadership restructuring includes Amy Montagne as President, Phil McCartney as EVP, Chief Innovation, Design & Product Officer, Nicole Graham as EVP, Chief Marketing Officer, and Tom Clarke as Chief Growth Initiatives Officer. These changes aim to enhance Nike’s focus on consumer engagement, innovation, and brand distinction, positioning the company for continued success.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 18, 2025