Oppenheimer analyst downgraded Nike Inc (NYSE:NKE) to Perform from Outperform and lowered the price target to $110 (from $150).
Also, the company reportedly plans to reduce over 1,600 jobs to enhance focus on key categories like running and women’s apparel.
This is at par with the company’s aim to deliver up to $2 billion in cumulative cost savings during the next three years.
The analyst expects top-line trends at the enterprise to remain sluggish and below algo in the next several quarters.
The analyst cited several concerns, including spotty consumer demand, pauses in product innovation, and modest competitive incursions in select categories.
For the third quarter (Feb), the analyst lowered EPS estimates to $0.74 (from $0.96) vs. consensus of $0.76, with currency-adjusted revenue growth projected to be down 0.7% (from +5% earlier).
For FY26 (May), the analyst cut EPS estimates to $4.57 (from $5.20) vs. consensus of $4.95 and expects currency-adjusted sales expansion of +5%-7%.
Price Action: NKE shares are trading lower by 3% at $102.87 on the last check Friday.
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