Overview
- Nike beat FQ2 estimates with revenue of $12.43 billion and EPS of $0.53, though some analysts highlighted a cautious FQ3 outlook with a forecast for a low single-digit topline decline.
- Shares are down roughly 10.8% since the Dec. 18 report as investors focused on a gross-margin contraction of about 300 basis points and weakness in Greater China.
- Regional and channel results were uneven, with wholesale up 8% globally as Nike Direct fell 9%, North America revenue up 9% on strong wholesale, and Greater China revenue down about 16% with digital down 36%.
- Following the quarter, UBS kept a Neutral rating with a $62 target, Stifel maintained Hold at $65, and Citi reiterated Hold while trimming its target to $65.
- Despite trims, the average 12‑month price target still implies roughly 30% upside, and UBS’s latest survey points to improved brand perception and better product access through wholesale.