Nike stocks take off after better than feared the results Q4 2025

Nike On Friday, the stock took off 17% after the company said it was behind the worst Better than the benefit Fiscal income report in the fourth quarter.

On Thursday, Nike reiterated that the quarter would need the biggest financial blow from its turn plan, soothing investors who worried the president Donald TrumpHiking tariffs on Nike key production Centers such as China and Vietnam have thwarted the company’s return.

Nike posted a bad fourth quarter when sales decreased by 12%, net income decreased by 86%and decreased. But CEO Elliott Hill emphasized that the company has come out of the worst recession, and the slide of sales and profit will start moderately in the quarter.

“The results we report today in Q4 and FY25 do not meet the Nike standard, but, as we said 90 days ago, the work we do to rearrange the business through our actions” Victory “has an impact,” Hill said of the call call, citing the company’s turn. “From here we expect our business results to improve. Time to translate the page.”

With some details about the progress of Nike’s turning strategies in the company’s profit, the company’s shares initially fell when it posted the results after the bell closing on Thursday. By the end of the clock call with Nike leaders and analysts at Wall -Restitis, the stock increased by more than 10% in expanded trading.

In addition, to assure the investors that the turn plan was working, Hill shared promising updates to launch new products and Nike’s efforts to return the wholesale partners that have been key since it took over in October.

Hill shared the details, behind the Nike decision to start selling further Amazon for First time since 2019 And his impetus to defeat women -packers, another priority for the company.

For a quarter, the company launched products in more than 200 women’s LED shops, including Aritzia, and released its collection along with the WNBA A’ja Wilson star, which Hel said that he had dispersed in three minutes.

By Friday morning, the shares rose even higher after many banks issued bull comments to the company. Hsbc updated nike to buy in HOLDHis first purchase rating for stocks for a year and a half.

HSBC also raised the target price to $ 80, which means 28% of the closing Thursday.

“Long in the creation, but we believe that the kink is finally here,” said Analyst Ramburg Analyst in the research note. “We believe there is more than material evidence that Nike has a way to see its sale in a not too far future, and its stock will be repaired, and this is despite the unfavorable tariff wind.”

Nike results show that the company bounces on the Wall Rate. But do not call it a return.

The sneakers giant tries to grow again at a shaky time for the economy, as weak consumer moods, debt growth, tariffs and mass deportations raise questions about costs and GDP.

According to LSEG, Nike still expects sales to fall in the current quarter by the average percentage, in accordance with expectations by 7% reduction by 7%.

There is also more work to clear the inventory of a stale lifestyle from their classic Dunks and Jordan Lines. These efforts to eliminate the old inventory caused profits and sales because Nike had to rely on deep discounts, design channels and the sector outside to find out this oversaturation.

In the financial 2025, which ended last month, sales for classics such as Air Force 1, Air Jordan 1 and Dunks decreased by more than 20% compared to the period of the year. In the fourth quarter, which accelerated up to 30%, which affected the sale of almost $ 1 billion, said the chief finance chief of the friend.

The Air Force Inventory level began stabilizing, but Nike is still working to clear the supply of its DUNK franchise, which will affect the company’s profits in the first half of its current financial year, said a friend.

Both Hill and a friend stated that Nike’s profits would be under pressure in the first half of the financial 2026 as it works through its inventory and claims more tariff costs. They said they expected the profit to improve in the second half of the year.

However, when it comes to the actual sales growth, it is still too early to tell if the company stops shrinking.

Asked if there were any scenarios if the company may return to the growth of income this year, Hill refused to share the term.

“Only from all that’s going on, we will take it 90 days,” Hill said. “We believe that full recovery will take time.”

Correction: This article was updated to correct the spelling of the arithia.