New York – Nike shares soared 17% on Friday, marking their sharpest single-day gain in years, after CEO Elliott Hill assured investors the company had moved beyond the most difficult phase of its restructuring strategy.
Although the company’s fourth-quarter report revealed a 12% drop in revenue and an 86% plunge in net income, Hill stressed that the recovery process is underway. During the earnings call, he mentioned that the most intense effects of restructuring are behind them and better performance is expected ahead.
“It’s time to turn the page,” Hill said, alluding to the internal “Win Now” strategy.
Positive Reaction from Wall Street
Initially, Nike’s stock declined following the earnings report. However, sentiment shifted during a detailed investor call. The stock rebounded significantly in after-hours trading, driven by optimism around new product plans and strategic improvements.
Hill pointed to key milestones, such as Nike’s renewed partnership with Amazon and the success of its women-led campaigns — especially a high-demand release with WNBA star A’ja Wilson that quickly sold out.
By Friday morning, top financial institutions including HSBC upgraded Nike to a “Buy” rating, assigning a revised price target of $80, reflecting an estimated 28% upside. Analyst Erwan Rambourg noted “visible progress” in Nike’s ongoing turnaround efforts.
Remaining Hurdles
Even with investor sentiment on the upswing, Nike continues to face significant hurdles.
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Overstock of legacy styles like Dunks and Jordans
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Increased expenses linked to tariffs in China and Vietnam
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Weakened consumer demand driven by persistent economic instability
The company forecasts a mid-single-digit decline in revenue for the current quarter. Executives also acknowledged that profit margins will likely remain under pressure through the first half of fiscal 2026.
“We believe full recovery will take time,” said Hill, adding that the company is assessing its progress in 90-day increments.
