Bernstein Identifies Signs: 'Is the Nike (NKE) turnaround working?'

Bernstein SocGen Group analyst Aneesha Sherman reiterated an Outperform rating and $109.00 price target on Nike (NYSE: NKE).

The analyst said: "Nike is going through a major product assortment overhaul. In Running, new Pegasus models were launched through the Summer / Fall and continuing into 2025, after all older models were discontinued in Spring 2024. In Lifestyle, Mgmt are in the midst of their “product lifecycle management” process that involves discounting and clearing out stale inventory within the three biggest franchises — Jordan, Dunk and Air Force 1 — while releasing new iterations to drive interest. In October, Elliott Hill joined as Nike’s new CEO as the turnaround continues.

Nike’s inventory clearance efforts picked up in November, with higher markdowns through the month and especially into Black Fri. Good news - Pegasus is still going strong, and Jordan clearance seems past the peak with new limited-edition launches coming. Bad news - AF1 and especially Dunk are still in the thick of clearing stale inventory. We share the latest on SKU counts, pricing, sell-through, markdowns, brand heat across key franchises.

We remain positive on normalization and brand heat in FY26, but a slow pace of inventory clearance on AF1/Dunk may bleed into H1 26 - we trim FY26 margins. PT $109."

For an analyst ratings summary and ratings history on Nike click here. For more ratings news on Nike click here.

Shares of Nike closed at $77.25 yesterday.

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