Nike’s (NKE) outlook for H1 2025 implies no revenue growth for calendar year 2024, which “leaves little to play for in the near term,” RBC Capital Markets said in a note to clients on Friday. The company is “prudently” projecting sales to be down by low-single-digits for the first six months of its following fiscal year, Nike Chief Financial Officer Matthew Friend said during a late Thursday conference call to discuss fiscal Q3 financial results, according to a Capital IQ transcript. The guidance “reflects near-term headwinds from life cycle management of our key product franchises, more than offsetting the scaling of new products as we shift our product portfolio toward newness and innovation,” Friend said. “This also continues to reflect the subdued macro outlook around the world.” RBC said that “organizational restructuring [plus] product transition over the next few quarters add further uncertainty and guidance risk in our view.” “We

Nike (NKE) is taking the right steps to improve its performance after its fiscal Q3 results pointed to challenging business fundamentals, UBS said in a note on Friday. The report said Nike is making changes that include bringing back the category offense and focus on sports, adjusting its DTC strategy and ramping marketing spend. “These changes are the right steps and will cause Nike’s business to inflect over the NTM, driving P/E expansion and stock outperformance,” said UBS analysts, including Jay Sole. UBS kept its buy rating while cutting its price target to $125 from $138. The analysts also said Nike’s brand image is still looking to regain momentum as its top selling shoes are not resonating with consumers as well as they once did. “Nike needs to add much more newness to its assortment to drive growth,” they said.