NEW YORK, December 29, 2025, 03:49 ET — Market closed
- Nike last closed up 1.6% at $60.93 on Friday
- UBS reiterated a Neutral rating and kept a $62 price target in a recent note
- Investors are bracing for thin year-end trade and Fed minutes due Tuesday
Nike (NKE) shares will be in focus when U.S. trading resumes later Monday after UBS reiterated a Neutral stance on the sportswear maker, pointing to improving brand indicators but a longer turnaround timeline. The stock last closed up 1.6% at $60.93 on Friday. 1
The timing matters because Nike is still trying to steady investor confidence after its mid-December earnings report flagged margin pressure from tariffs and discounting, alongside another sharp fall in China sales. 2
The note also lands in the final three trading sessions of 2025, when light volumes and year-end positioning can exaggerate moves. Traders are also looking ahead to Federal Reserve meeting minutes on Tuesday that could sway rate-cut expectations and consumer-stock valuations. 3
Wall Street ended Friday’s post-Christmas session nearly flat, with consumer discretionary — the sector that includes Nike — the biggest laggard, Reuters reported. Investors are watching for a “Santa Claus rally,” a seasonal stretch covering the last five trading days of the year and the first two of the next. 4
UBS analyst Jay Sole reiterated a Neutral rating and kept his $62 price target, an analyst’s estimate of where a stock could trade over the next 12 months. “The recovery is moving in the right direction but may take longer than investors expect,” Sole wrote. 1
Sole based his view on results from UBS Evidence Lab’s global sportswear survey, which he said showed improving perceptions of Nike’s brand compared with last year. 1
The survey also suggested easier product access as Nike pushes back into the wholesale channel — sales through third-party retailers — after years of emphasizing direct-to-consumer selling via its own stores and website. 1
UBS remained cautious on how quickly those brand signals will translate into earnings, pointing to uneven regional performance and execution risks as Nike works through its product reset, TipRanks reported. 1
Nike reported fiscal second-quarter results on Dec. 18 that beat revenue expectations, but gross margin fell 300 basis points, or 3 percentage points — a key profitability measure after the cost of goods sold. Chief executive Elliott Hill said tariffs remained a headwind, and CFO Matthew Friend said those tariffs would cost Nike about $1.5 billion this year, Reuters reported. 2
The company said sales in China fell 17% for a sixth straight quarter and projected third-quarter revenue would decline in the low single digits. Analysts have also highlighted competitive pressure from newer brands such as On and Deckers-owned Hoka, Reuters reported. 2
Nike shares are down about 7% since the Dec. 18 close, based on closing prices, after sliding to an intraday low of $57.14 on Dec. 22. 5
Before the next regular session, traders will be watching whether year-end portfolio adjustments extend the broader market’s late-December resilience, with the S&P 500 about 1% from 7,000 in the final week of the year, Reuters reported. 3
Tuesday’s Fed minutes, from the Dec. 9-10 meeting, are the next macro waypoint. The central bank has cut rates by 75 basis points — 0.75 percentage point — over its last three meetings of 2025 to a 3.50%-3.75% range, and investors are trying to pin down the pace of further easing in 2026. 3
For Nike, traders have also kept an eye on whether the stock can hold the round-number $60 area after last week’s dip to $57.14, with Friday’s close at $60.93 marking a bounce from those lows. 5
The next company-specific catalyst is Nike’s fiscal third-quarter report, which Zacks expects on March 19. Investors will be looking for progress on China demand, tariff costs and gross margin stabilization as Nike works through its turnaround plan. 6
