Source: Sharecast
Dan Coatsworth, head of markets at AJ Bell, said: "Investors may have had fair warning that Nike’s recovery would be a marathon and not a sprint, but it’s starting to feel like the company is running backwards. The shares have extended their multi-year slump amid few signs of tangible progress in improving the company’s prospects and as sales and profits continue to head in the wrong direction.
"CEO Elliott Hill joined in October 2024 with a plan to return Nike to its roots in sports and rebuild wholesale partnerships, which had been pushed aside as the company made a big leap into direct-to-consumer sales. The need to reaffirm its sporting credentials follows the emergence of upstart competitors, particularly in categories like running from brands such as On and Hoka.
"Investors will be looking for evidence of improved wholesale momentum to be extended and for progress in clearing out stale product lines. With promotional discounting on lifestyle lines like Hoops Classics and Jordan streetwear likely to involve short-term pain, investors will hope that translates into longer-term gains."
Coatsworth said Nike’s guidance will be closely watched amid some fears of a further reset in expectations when the company holds its investor day in November. "Hill will be expected to provide some reassurance on product innovation where, up until now, progress has been sluggish," he said.
On the macroeconomic calendar, the September S&P Global manufacturing PMI for the UK will be eyed, along with the latest initial jobless claims data in the US.