Needham Cuts Nike Earnings Estimates Ahead of Q1 Results

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3▲0 ▼3Impact / 5
Summary · why it matters

Needham reiterated its Hold rating on Nike and cut its earnings estimates ahead of the company's fiscal first-quarter results on Oct. 1 after the close, warning the stock could keep falling. Analyst Tom Nikic cited soft demand trends, high inventory levels, intense promotional activity and unfavorable competitive dynamics. He pointed to two negative developments since Nike's fourth-quarter earnings call in late June: weakened U.S. back-to-school demand that led to missed sales targets and lower guidance at Dick's Sporting Goods, which owns Foot Locker, and at JD Sports, and two key wholesale partners in China saying they will stop selling Nike products online. Needham lowered its fiscal 2027 earnings per share forecast to $1.64 from $1.74 and cut its fiscal 2028 estimate to $1.80 from $2.00, and the firm does not have a price target on the stock. Nike shares closed at $36.05 on Wednesday and are down around 0.8% to $35.77 so far today, with the stock down almost 50% in the last 12 months and over 44% year-to-date.

Impact on assets 3

Consumer Discretionary▼ · 3 stocks
Nike Inc
NKE
▼ NegativeCapitalDemandrelevance

Needham reiterated Hold and cut Nike's FY27/FY28 EPS estimates ahead of Q1 results, warning the stock could keep falling.

Dick’s Sporting Goods Inc
DKS
▼ NegativeDemandrelevance

Weakened U.S. back-to-school demand led to missed sales targets and lower guidance at Dick's Sporting Goods.

JD Sports Fashion PLC
JD
▼ NegativeDemandrelevance

JD Sports cited as a wholesale partner with missed sales targets and lower guidance amid weak back-to-school demand.

Off-coverage companies 1

Foot Locker, Inc.Private▼ Negative
Demandrelevance

Foot Locker, owned by Dick's Sporting Goods, cited for missed sales targets and lower guidance on weak demand.

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