Nike Revamps C-Suite, 'Win Now' Strategy Faces Profit Pressure: Analyst

Nike Inc NKE is shaking up its leadership structure in a bid to reinvigorate growth, but Wall Street remains cautious.

Telsey Advisory Group analyst Cristina Fernandez on Tuesday reiterated a Market Perform rating on the shares of Nike and lowered the price forecast from $80 to $70.

Nike announced on Monday that Heidi O'Neill, President of Consumer, Product & Brand, will retire after 26 years. The company will eliminate the role and split O’Neill’s previous duties into three functions:

Consumer and Sport
Marketing and
Product Creation.

The restructuring supports Nike's "Win Now" strategy, with longtime company veterans filling the newly created leadership roles.

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Nike, under new CEO Elliott Hill, has named several seasoned executives to new leadership roles. Amy Montagne is now president, overseeing consumer engagement and brand growth across all sports.

Nicole Graham is now EVP and Chief Marketing Officer, continuing to lead global brand efforts. Phil McCartney steps up as EVP, Chief Innovation, Design & Product Officer.

Additionally, Thomas Clarke becomes Chief Growth Initiatives Officer, while Jennifer Hartley is promoted to Chief Strategy Officer.

The analyst said Nike is still a few quarters away from stabilizing its business, but commend the company’s strategic efforts to improve inventory, refresh its product lineup, and rebuild wholesale relationships.

However, structural challenges including a shift toward performance products, more wholesale exposure, and higher discounting are expected to pressure profits.

The lowered price forecast reflects increased economic uncertainty and reduced earnings visibility. The analyst’s FY25 EPS estimate stands at $2.10 (FS at $2.13), with a sales decline of 10.9% to $45.8 billion.

Price Action: NKE shares traded lower by 0.52% at $57.05 at last check Tuesday.

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