Why Nike Stock Slipped on Friday
Nike (NYSE: NKE) stock slid 2.5% through 10:25 a.m. ET Friday after CNBC (and others) reported Citigroup is downgrading the stock to neutral. Citi is just back from a meeting with new Nike CEO Elliott Hill, and feeling unenthused by the CEO's promises for 2026 performance. Neither sales nor earnings forecasts were as good as Citi hoped for, and "Nike's sales pressures seem likely to continue as it manages down key franchises further in fiscal 2026," reports The Fly. CEO Hill apparently warned Citi that Nike lacks sufficient "product" to hit analyst sales targets next year, and needs to invest in "demand creation" for its existing products -- which sounds like Wall Street-speak for holding sales and cutting prices, hurting gross and operating profit margins. As a result, Citi is losing confidence the shoemaker will turn around its business within the next year or two, and the bank simply lacks "patience or conviction to wait another year."Continue reading
Nike (NYSE: NKE) stock slid 2.5% through 10:25 a.m. ET Friday after CNBC (and others) reported Citigroup is downgrading the stock to neutral.
Citi is just back from a meeting with new Nike CEO Elliott Hill, and feeling unenthused by the CEO's promises for 2026 performance. Neither sales nor earnings forecasts were as good as Citi hoped for, and "Nike's sales pressures seem likely to continue as it manages down key franchises further in fiscal 2026," reports The Fly.
CEO Hill apparently warned Citi that Nike lacks sufficient "product" to hit analyst sales targets next year, and needs to invest in "demand creation" for its existing products -- which sounds like Wall Street-speak for holding sales and cutting prices, hurting gross and operating profit margins. As a result, Citi is losing confidence the shoemaker will turn around its business within the next year or two, and the bank simply lacks "patience or conviction to wait another year."
