Nike, Inc. (NYSE:NKE) stock rose Thursday as investors grew more optimistic about the company’s product pipeline and strengthening demand signals across key channels.
The sportswear giant is also leaning into a broader consumer base, including value-focused shoppers on Amazon, as it works to regain momentum.
Nike will release its second-quarter fiscal 2026 financial results on Thursday, December 18.
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Bank of America Securities analyst Lorraine Hutchinson reiterated the Buy rating on the stock, with a price forecast of $84.
Analyst’s Take
Hutchinson said Nike’s upcoming third-quarter revenue outlook will be the most important metric to watch. She noted the company spent the past year reducing excess inventory and speeding product innovation.
Per the analyst, these efforts should help sales begin to turn in the third quarter.
She added that wholesale deliveries, early World Cup demand and easier comparisons should support the inflection.
Hutchinson also pointed to ongoing pressure from weaker direct-to-consumer traffic due to fewer promotions.
The analyst said last year’s heavy off-price mix will also create headwinds for reported wholesale trends.
Sales And Margin Expectations
She expects these factors to balance to roughly flat constant-currency growth, with improvements in the fourth quarter.
The analyst said stronger sales messaging combined with clean inventory would signal a healthy recovery.
Hutchinson added that the gross-margin outlook remains a key debate for investors. She noted Nike cautioned that recoveries are rarely linear when discussing earlier sales softness.
Hutchinson models slightly negative constant-currency sales in the second quarter with steady improvement afterward. She said some investors worry this may still prove optimistic.
Hutchinson also highlighted uncertainty around gross-margin gains as comparisons ease in North America. She noted Nike will still face additional tariff pressure in the second half.
Hutchinson models modest margin expansion but sees potential upside with strong sell-through trends.
The analyst said Nike’s Amazon.com, Inc.(NASDAQ:AMZN) storefront targets value-oriented consumers the company previously underserved.
She noted the Amazon assortment leans toward footwear priced below $100.
Greater China Recovery
Greater China’s rebound is likely to be slow, with pressure expected through fiscal 2026.
Pou Sheng’s sales have stabilized since June, but digital channels remain highly promotional with deep discounting.
Management aims to lift sell-through with refreshed store concepts, yet meaningful sales growth isn’t expected until fiscal 2027.
NKE Price Action: Nike shares were up 2.01% at $67.11 at the time of publication on Thursday, according to Benzinga Pro data.
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