Nike's 'Just Do It' job looks bigger than advertised

NIKE

02/10/2026 09:33

** Nike NKE.N is deepening its restructuring under CEO Elliott Hill as its woes in China intensify, announcing a plan to cut more jobs and shake up its global business divisions after the sportswear giant projected a surprisingly steep drop in full-year revenue
** Shares fall nearly 9% to $32.06 premarket
     
STEEP CLIMB 
** Morgan Stanley ("underweight," PT: $27) says NKE must tap World Cup & Performance strength; worse-than-expected wholesale sell-through trends could linger and create bigger inventory builds vs. management’s order forecasts 
** RBC Capital Markets ("sector perform," PT: $40) says things are "going to get worse before they get better", with management signaling impact from right-sizing initiatives through FY28E, while fixes needed in Jordan, Sportswear and Greater China appear larger than anticipated
** BTIG ("buy," PT: $50) expects continued pressure from Nike Sportswear, Jordan, and Greater China, including Greater China worsening from the first quarter
** Oppenheimer ("outperform") says it is still concerned that successful repositioning at NKE remains a way off and is likely to entail further "pain" in the nearer term
     
     

 (Reporting by Akriti Shah in Bengaluru)
 ((akriti.shah@thomsonreuters.com ; X, formerly Twitter: @AkritiShahh))