Zacks Research Comments on NIKE's Q2 Earnings (NYSE:NKE)

Key Points

• Zacks Research cut its Q2 2028 EPS estimate for NIKE to $0.60 from $0.80 and kept a Strong Sell rating, signaling ongoing skepticism about the company’s near-term outlook.
• NIKE’s latest quarterly results beat expectations, with earnings of $0.20 per share and revenue of $10.97 billion, though sales were still down 1.1% year over year.
• Wall Street sentiment remains cautious overall: NIKE’s consensus rating is Hold with an average target price of $53.86, while several analysts have recently lowered price targets or downgraded the stock.

NIKE, Inc. (NYSE:NKE - Free Report) - Equities research analysts at Zacks Research cut their Q2 2028 EPS estimates for shares of NIKE in a note issued to investors on Tuesday, July 21st. Zacks Research analyst Team now forecasts that the footwear maker will earn $0.60 per share for the quarter, down from their previous estimate of $0.80. Zacks Research has a "Strong Sell" rating on the stock. The consensus estimate for NIKE's current full-year earnings is $1.74 per share. Zacks Research also issued estimates for NIKE's Q4 2028 earnings at $0.53 EPS.

NIKE (NYSE:NKE - Get Free Report) last announced its earnings results on Tuesday, June 30th. The footwear maker reported $0.20 earnings per share for the quarter, beating analysts' consensus estimates of $0.11 by $0.09. NIKE had a net margin of 6.70% and a return on equity of 16.54%. The firm had revenue of $10.97 billion for the quarter, compared to analyst estimates of $10.85 billion. During the same quarter in the previous year, the firm posted $0.14 EPS. The company's revenue for the quarter was down 1.1% compared to the same quarter last year.

NKE has been the topic of a number of other research reports. Rothschild & Co Redburn reduced their target price on NIKE from $45.00 to $37.00 and set a "sell" rating on the stock in a report on Friday, July 17th. Jefferies Financial Group lowered their target price on NIKE from $90.00 to $75.00 and set a "buy" rating for the company in a research note on Wednesday, July 1st. Argus upgraded NIKE to a "strong-buy" rating in a research report on Wednesday, July 15th. Guggenheim reaffirmed a "buy" rating and issued a $60.00 price target (down from $74.00) on shares of NIKE in a research note on Wednesday, July 1st. Finally, DA Davidson downgraded NIKE from a "buy" rating to a "neutral" rating and decreased their price objective for the stock from $72.00 to $46.00 in a report on Thursday, April 2nd. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, nineteen have assigned a Hold rating and four have issued a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $53.86.

NIKE Stock Performance

Shares of NKE opened at $42.22 on Thursday. The company has a 50-day simple moving average of $43.70 and a two-hundred day simple moving average of $51.37. The company has a debt-to-equity ratio of 0.40, a current ratio of 1.96 and a quick ratio of 1.36. The firm has a market capitalization of $62.52 billion, a PE ratio of 20.20, a price-to-earnings-growth ratio of 1.91 and a beta of 1.12. NIKE has a one year low of $40.00 and a one year high of $80.17.

NIKE Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, July 1st. Investors of record on Monday, June 1st were paid a $0.41 dividend. The ex-dividend date was Monday, June 1st. This represents a $1.64 dividend on an annualized basis and a yield of 3.9%. NIKE's payout ratio is presently 78.47%.

Insider Buying and Selling

In related news, EVP Philip Mccartney sold 17,398 shares of the stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $46.18, for a total transaction of $803,439.64. Following the sale, the executive vice president directly owned 53,133 shares of the company's stock, valued at approximately $2,453,681.94. This represents a 24.67% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Company insiders own 1.10% of the company's stock.

Institutional Investors Weigh In On NIKE

Several institutional investors and hedge funds have recently made changes to their positions in the company. Ballast Inc. raised its holdings in NIKE by 78.2% in the 2nd quarter. Ballast Inc. now owns 45,737 shares of the footwear maker's stock worth $1,878,000 after acquiring an additional 20,076 shares during the last quarter. Tema ETFs LLC increased its holdings in shares of NIKE by 10.8% in the 2nd quarter. Tema ETFs LLC now owns 23,851 shares of the footwear maker's stock worth $979,000 after purchasing an additional 2,320 shares in the last quarter. Handelsbanken Fonder AB increased its holdings in shares of NIKE by 23.1% in the 2nd quarter. Handelsbanken Fonder AB now owns 595,016 shares of the footwear maker's stock worth $24,425,000 after purchasing an additional 111,625 shares in the last quarter. Scott Capital Advisors LLC raised its stake in shares of NIKE by 17.6% in the second quarter. Scott Capital Advisors LLC now owns 7,354 shares of the footwear maker's stock worth $302,000 after purchasing an additional 1,100 shares during the last quarter. Finally, KMG Fiduciary Partners LLC boosted its position in shares of NIKE by 458.9% during the second quarter. KMG Fiduciary Partners LLC now owns 28,441 shares of the footwear maker's stock valued at $1,168,000 after buying an additional 23,352 shares during the last quarter. Institutional investors own 64.25% of the company's stock.

Key NIKE News

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: NIKE is aiming to regain pricing power and reduce marketplace clutter in China by steering online sales toward its own website, app, and select flagship storefronts, which could strengthen brand presentation if it works. After tackling discounts in China, Nike still needs to win back shoppers
• Positive Sentiment: Some analysts still see meaningful upside longer term, with coverage citing a potentially attractive valuation despite the stock’s recent weakness. Nike Continues a Troubled 2026 But Has Potential to Double According to Morningstar
• Neutral Sentiment: NIKE’s latest earnings beat expectations, but revenue still declined year over year, leaving the turnaround narrative intact rather than clearly resolved.
• Negative Sentiment: Wall Street skepticism is growing after NIKE said it will end online distribution through several China partners starting in 2027, with analysts warning that sales could be pressured and market share could slip during the transition. NKE Stock Slips As Nike’s China E-Commerce Reset Draws Wall Street Skepticism
• Negative Sentiment: Reuters and other reports say Nike has been losing sales in China for eight straight quarters, and the overhaul highlights how dependent the turnaround is on winning back shoppers in a highly competitive market. Nike to tighten online sales in China amid 'cluttered' marketplace
• Negative Sentiment: Zacks Research cut multiple forward earnings estimates and kept a “Strong Sell” rating, reinforcing concerns that NIKE’s recovery may take longer than investors hoped. NIKE, Inc. stock news

NIKE Company Profile

Nike, Inc NYSE: NKE is a global designer, marketer and distributor of athletic footwear, apparel, equipment and accessories. Founded in 1964 as Blue Ribbon Sports by Phil Knight and Bill Bowerman and renamed Nike in 1971, the company is headquartered near Beaverton, Oregon. Nike develops and commercializes products across performance and lifestyle categories for sports including running, basketball, soccer and training, and is known for signature technologies and design-driven product lines.

The company markets products under several primary brands, including Nike, Jordan and Converse, and sells through a combination of wholesale relationships, branded retail stores and direct-to-consumer channels such as company-operated stores and digital platforms (e.g., Nike.com and mobile apps).

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