We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Were Nike's Q4 Results Good Enough to Rebound Its Stock?
Read MoreHide Full Article
Nike (NKE - Free Report) shares were up roughly +3% on Thursday ahead of results for its fiscal fourth quarter, which it released after the closing bell.
Despite the pre-earnings spike, NKE is down 17% in 2025 and has now fallen a grizzly 44% over the last three years to widely trail the benchmark S&P 500’s gains of more than +50% and its archrival Adidas (ADDYY - Free Report) , whose stock is up +24% during this period.
That said, let’s see if Nike’s Q4 report was enough to get the ball rolling in regard to a potential rebound for the iconic apparel retailer's stock.
Image Source: Zacks Investment Research
Nike’s Q4 Report & Full Year Results
Reporting Q4 sales of $11.1 billion, Nike was able to exceed the Zacks Consensus of $10.71 billion, although this was a 12% decline from $12.6 billion in the comparative quarter. On the bottom line, Nike’s net income came in at $211 million or $0.14 per share, which topped EPS expectations of $0.12 but fell 86% from $1.01 a share in the prior year quarter.
Dealing with what has been an ongoing need to revamp its product line, Nike CEO Elliott Hill stated the company is leaning into a new “sport offense” strategy to reignite growth by focusing on core products, product innovation, and a storytelling marketing strategy. Overall, Nike’s total sales fell 10% during its fiscal 2025 to $46.3 billion, while EPS dropped 45% to $2.16 from $3.95 in FY24.
Monitoring Nike’s P/E Valuation
Amid the decline in Nike’s earnings, it has become more evident that monitoring the retail apparel giant’s P/E valuation is very necessary.
While Nike’s Q4 report was somewhat underwhelming, at around $62 a share, NKE does trade at a reasonable 32.1X forward earnings multiple. This is near Nike’s decade-long median of 29.4X forward earnings and a 37% discount to its decade high of 51.1X. Still, Nike trades at a premium to the benchmark’s 23.5X forward earnings multiple and Adidas at 26.8X.
Image Source: Zacks Investment Research
Bottom Line
Nike stock currently lands a Zacks Rank #3 (Hold), but its Q4 report did not give enough to justify a meaningful rebound. Losing market share to rival Adidas and up-and-coming players like Under Armour (UAA - Free Report) , Nike’s turnaround strategy is much needed and could eventually cause a sharp rally in NKE, just not right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Were Nike's Q4 Results Good Enough to Rebound Its Stock?
Nike (NKE - Free Report) shares were up roughly +3% on Thursday ahead of results for its fiscal fourth quarter, which it released after the closing bell.
Despite the pre-earnings spike, NKE is down 17% in 2025 and has now fallen a grizzly 44% over the last three years to widely trail the benchmark S&P 500’s gains of more than +50% and its archrival Adidas (ADDYY - Free Report) , whose stock is up +24% during this period.
That said, let’s see if Nike’s Q4 report was enough to get the ball rolling in regard to a potential rebound for the iconic apparel retailer's stock.
Image Source: Zacks Investment Research
Nike’s Q4 Report & Full Year Results
Reporting Q4 sales of $11.1 billion, Nike was able to exceed the Zacks Consensus of $10.71 billion, although this was a 12% decline from $12.6 billion in the comparative quarter. On the bottom line, Nike’s net income came in at $211 million or $0.14 per share, which topped EPS expectations of $0.12 but fell 86% from $1.01 a share in the prior year quarter.
Dealing with what has been an ongoing need to revamp its product line, Nike CEO Elliott Hill stated the company is leaning into a new “sport offense” strategy to reignite growth by focusing on core products, product innovation, and a storytelling marketing strategy. Overall, Nike’s total sales fell 10% during its fiscal 2025 to $46.3 billion, while EPS dropped 45% to $2.16 from $3.95 in FY24.
Monitoring Nike’s P/E Valuation
Amid the decline in Nike’s earnings, it has become more evident that monitoring the retail apparel giant’s P/E valuation is very necessary.
While Nike’s Q4 report was somewhat underwhelming, at around $62 a share, NKE does trade at a reasonable 32.1X forward earnings multiple. This is near Nike’s decade-long median of 29.4X forward earnings and a 37% discount to its decade high of 51.1X. Still, Nike trades at a premium to the benchmark’s 23.5X forward earnings multiple and Adidas at 26.8X.
Image Source: Zacks Investment Research
Bottom Line
Nike stock currently lands a Zacks Rank #3 (Hold), but its Q4 report did not give enough to justify a meaningful rebound. Losing market share to rival Adidas and up-and-coming players like Under Armour (UAA - Free Report) , Nike’s turnaround strategy is much needed and could eventually cause a sharp rally in NKE, just not right now.