
Nike Stock increases after better Q4 2025 results than feared

Nike The stock rose by 17%on Friday after the company announced that the worst of its fights were behind in the fourth quarter after a better winning report in the fourth quarter.
Nike confirmed on Thursday that it would require the biggest financial goal from his turnaround plan in the quarter and calmed investors who feared that President Donald Trump's customs duties in important Nike Manufacturing Hubs such as China and Vietnam would escape the comeback of the company.
Nike recorded a bad fourth quarter because sales decreased by 12%, net profit decreased by 86% and the profit margins. But CEO Elliott Hill emphasized that the company had emerged from the worst break -in, and sales and profits were aligned in the upcoming quarters.
“The results that we report today in the fourth quarter and in the financial year25 are not the Nike standard, but as we said 90 days ago, the work that we have to reposition the business through our actions of” Win Now “,” said Hill on a winning call, whereby the name of the company of the turnaround plan refers to. “From here we expect our business results to improve. It is time to turn the site.”
With just a few details about the progress of the Turnaround strategies by Nike in the company's publication, the company's shares fell first when the results were achieved after the final bell on Thursday. Until the end of a one -hour call with Nike executives and Wall Street analysts, the share had increased by more than 10% in extended trade.
Apart from that, Hill has assured investors that the turnaround plan works, but rather promising updates for new product launches and the efforts of Nike, wholesale partners who have been important priorities since its takeover in October.
Hill shared details behind Nike's decision to start selling Amazon For the first time since 2019 and his push of winning buyers, another priority for the company is.
During the quarter, the company launched products in more than 200 LED stores of women, including Aritzia, and published its collection with the WNBA star A'ja Wilson, who, according to Hill, was sold out in three minutes.
The share rose even higher on Friday morning after numerous banks had issued a bullish comment on the company. HSBC Improved Nike to buy from hold, his first business rating for the stock for 3½ years.
HSBC also increased its price target to 80 US dollars, which implied an upward trend of 28% compared to closing on Thursday.
“For a long time in the origin, but we believe that the bow is finally there,” said analyst Erwan Ramburg in a research note. “We believe that there is more than tangible evidence that Nike has a way to recognize its sales in the not too distant future and his margins to be repaired, despite an unfavorable headwind.”
Nike's results show that the company is recovering to the Likes Timeline Wall Street. But don't call it a comeback yet.
The sneaker giant tries to grow again for the economy at a shaky time, since weaker consumer mood, rising debts, tariffs and mass deportations raise questions about expenses and GDP.
Nike still expects sales to decline in a medium -sized percentage in accordance with a decline in Wall Street in a medium -sized percentage in a medium -sized percentage.
It also has more work to do to trigger outdated lifestyle inventory from its classic Dunks and Jordan lines. These efforts to liquidate old inventory have achieved profit margins and sales, since Nike had to rely on deep discounts, release channels and the off-price sector to clarify this flood.
In the 2025 financial year, which ended last month, sales for classics such as Air Force 1, Air Jordan 1 and Dunks decreased by more than 20% compared to the same period last year. In the fourth quarter, this accelerated to 30%, which had an almost 1 billion US dollar, said CFO Matt Friend.
Air Force 1's inventory values have started to stabilize, but Nike is still working to clean up the supply of his Dunk franchise, which will influence the company's profits in the first half of its current financial year, said Freund.
Both Hill and Friend said that Nike's profits will be under pressure in the first half of the 2026 financial year, as he goes through his inventory and fights with higher costs of the tariffs. They said they expect the profits to improve in the second half of the year.
However, when it comes to actual sales growth, it is still too early to see when the company no longer shrinks.
When asked whether there are scenarios in which the company could return to sales growth this year, Hill refused to share a timeline.
“Only because of everything that is going on, we will take it 90 days each,” said Hill. “We believe that complete recovery will take some time.”
Correction: This article has been updated to correct the spelling of Aritzia.