Nike Inc. continues to make significant strides in its turnaround strategy, as evidenced by recent developments and positive signals from the market. Despite expectations of pressures on first-quarter sales due to increased tariffs, reduced promotions, and uncertain consumer spending, the outlook remains optimistic.
Telsey Advisory Group analyst Cristina Fernández highlights the positive reception of Nike’s new running products, the expansion of Jordan and Nike in wholesale accounts, and healthier consumer spending during the back-to-school period. However, she anticipates first-quarter sales could face challenges from lower online traffic, reduced units to key franchisees, and ongoing softness in the Chinese market. Fernández commends Nike’s actions in streamlining inventory, fostering innovation, and fortifying relationships with wholesale partners, expecting a stabilization of the impact of increased tariffs, which could now be estimated at $1.5 billion for Fiscal Year 2026, within the next several quarters.
According to CFRA Research analyst Zachary Warring, Nike is likely to remain resilient against tariff impacts, as a significant portion of its revenue comes from outside North America and a small percentage of its goods are manufactured in China. Warring also emphasizes Nike’s influence over suppliers, suggesting the turnaround is progressing well, driven by a strategy focusing on sports. He projects that Nike could surpass analysts’ estimates, which have become more conservative.
Similarly, Jefferies analyst Randal Konik predicts a slight earnings beat for Nike, with a notable acceleration expected in the second half of the year. This outlook is supported by innovation, robust retail momentum, and an improved marketplace, which all contribute to increased consumer interest and engagement. Konik observes that foot traffic at Nike locations has returned to positive growth, and consumer purchase consideration has risen, signaling an upward trend in brand interest.
New product developments are also contributing to Nike’s positive momentum. The Vomero 18 has seen impressive sales, and the Pegasus model continues to dominate search volume. Furthermore, the NikeSkims collaboration is expected to enhance interest among female consumers. Nike’s innovative approach and wide distribution network underpin its strong market presence, as demonstrated by a year-over-year increase in its holiday order volume.
Recent product releases, including the generative AI-designed Astra Ultra and iconic retro releases like the Air Max 95 and Air Foamposite Pro, underscore Nike’s commitment to innovation and nod to its rich history. With upcoming releases, such as the Nike Air Max Phenomena SWDC and the Nike Vaporposite Pro, the company maintains a strong focus on appealing to a broad array of consumers, ensuring sustained interest and engagement.
Overall, Nike’s strategic initiatives seem to be setting the stage for continued growth and transformation, positioning the company favorably for future success. As the company navigates external challenges, it focuses on leveraging its innovative capabilities, strong brand appeal, and strategic partnerships to reinforce its market leadership.