Overview
- HSBC, which lowered Nike to Hold on Monday with a target cut to $48, pointed to a slower turnaround as shares hovered near $42 at the 52-week low.
- Management’s March 31 update guided for a 2% to 4% revenue decline this quarter and about a 20% drop in Greater China, signaling softer demand in a key market.
- Despite four straight earnings-per-share beats, Nike’s latest quarter showed net income down 35% year over year with flat revenue and a 9% slide in digital sales.
- HSBC estimates U.S. tariffs could add roughly $1.5 billion in yearly costs, a headwind that pressures margins and helps explain ongoing discounting as Nike clears inventory.
- Street sentiment has cooled to a Hold consensus after fresh cuts from Piper Sandler, Citigroup, Evercore ISI and others, reflecting reduced confidence in near-term catalysts.