TLDR
- Nike stock fell 2.4% in pre-market trading after wholesale partner Dick’s Sporting Goods missed Q2 estimates and slashed its full-year outlook.
- Dick’s cut its FY2027 EPS guidance to $11-$12, well below the $14.20 analyst consensus.
- Dick’s pointed to weak new product launches and promotional conditions in athletic footwear as key reasons.
- Stifel and RBC Capital both maintained Hold/Sector Perform ratings on Nike with $45 price targets.
- Nike is trading near the lower end of its 52-week range of $38.86 to $79.51.
Nike stock dropped 2.4% in pre-market trading on Tuesday after Dick’s Sporting Goods reported a disappointing second quarter and dramatically reduced its full-year earnings outlook, pointing directly at weakness in the athletic footwear and apparel market.
Nike opened at $40.73, sitting close to the lower end of its 52-week range of $38.86 to $79.51.
Dick’s posted Q2 earnings per share of $3.53, missing the $3.78 estimate. Revenue came in at $5.59 billion, short of the $5.65 billion Wall Street expected.
The bigger blow came from the full-year guidance. Dick’s slashed its FY2027 EPS outlook to a range of $11 to $12, far below the $14.20 analyst consensus.
The retailer cited increasingly promotional conditions and weak new product launches in athletic footwear as the main reasons. Foot Locker comparable sales fell 3.6% during the quarter.
Dick’s acquired Foot Locker last year, and the combined entity is now one of Nike’s most important wholesale distribution channels. Nike has been leaning back into wholesale after years of pushing its direct-to-consumer model.
The company reported a 63% inventory build following the Foot Locker acquisition, adding another layer of concern about the health of the channel.
Analysts Remain Cautious
Stifel reiterated a Hold rating and $45 price target after its 2026 back-to-school survey. Nike was the most popular brand in 45.8% of retail checks, up from an all-time low of 38.2% in 2025, but still well below the 92.5% peak hit in 2021.
RBC Capital also kept its Sector Perform rating and $45 target following investor meetings with CEO Elliott Hill in London. The bank noted that Nike’s recovery is taking longer than management expected, partly due to industry lead times and the impact of the Iran conflict.
The broader market is not the issue here. The S&P 500 was up 0.4%, the Nasdaq up 0.8%, and the Dow up 0.4% on the day. Nike’s weakness is company-specific.
Institutional Activity and Analyst Ratings
On the institutional side, Jones Financial Companies bought a new stake worth roughly $1.97 million in Q2. Several other funds have also added positions, including Harris Associates and Flossbach Von Storch.
Norges Bank bought a new position worth approximately $829.9 million in Q4. Capital World Investors raised its stake by 16.2%. Institutional investors now own 64.25% of the stock.
Analyst opinion is mixed. Out of 37 analysts tracked, 13 have a Buy rating, 19 have a Hold, and four have a Sell. The consensus price target stands at $53.53.
Goldman Sachs cut its price target from $46 to $42, maintaining a Neutral rating. BTIG Research maintained a Buy with a $55 target, and Robert W. Baird holds an Outperform with a $70 target.
CFO Matthew Friend sold 2,463 shares on August 5th at an average price of $41.60, in a pre-arranged Rule 10b5-1 plan.
Nike’s next quarterly dividend of $0.41 is set to be paid on October 1st, representing a 4.0% yield at current prices.
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