New York, Jan 12, 2026, 14:43 EST — Regular session
- Nike shares edged lower in afternoon trading despite a bullish note from Jefferies ahead of the ICR consumer conference
- Nike’s recent earnings revealed slight revenue gains, though profits and margins came under pressure
- This week’s focus: demand signals, discounting trends, plus any new insights on China and wholesale momentum
Nike shares dropped 0.6% to $65.52 in Monday afternoon trading, despite Jefferies reaffirming its buy rating and naming the sportswear giant its top large-cap pick for 2026. Analyst Randal Konik said he “would buy shares aggressively” ahead of this week’s ICR consumer conference and maintained a $110 price target. 1
The call arrives just as investors and analysts gather at the ICR Conference in Orlando, a key January event focused on consumer and retail forecasts. Spanning three days, the conference frequently shapes which stocks fund managers favor—and which they avoid—heading into the first quarter. 2
Nike is pushing to prove its turnaround is holding. The company has shifted more toward wholesale partners and cut back on promotions. Yet, demand remains patchy across different regions, and rising costs from tariffs and sourcing continue to weigh.
On Dec. 18, Nike released its latest quarterly report showing Q2 revenue at $12.4 billion, edging up 1%. But net income took a hit, falling 32% to roughly $0.8 billion. The gross margin slipped 300 basis points to 40.6%, largely due to higher tariffs in North America. Nike Direct revenue dropped 8% to $4.6 billion, while wholesale climbed 8% to $7.5 billion. Converse revenue slumped 30% to $300 million. CEO Elliott Hill described the company as “in the middle innings of our comeback,” and CFO Matthew Friend emphasized ongoing changes to “position our portfolio for a full recovery.” 3
Dividends continue to attract investors looking for steadier income from consumer stocks. Nike’s investor site notes the company has raised its annual dividend rate every year since 2004. Quarterly payouts usually come around Jan. 5, April 5, July 5, and Oct. 5, pending board approval. 4
The broader market edged up modestly, with the SPDR S&P 500 ETF gaining 0.2% and the consumer discretionary sector ETF rising 0.3%. Nike lagged despite a new endorsement deal, highlighting ongoing doubts about whether earnings growth will materialize quickly enough to prompt a rerating.
Investors at ICR this week are zeroing in on inventory control and discounting among retailers, as well as early signals for footwear demand in 2026. Swiss running shoe maker On Holding, a relative newcomer shaking up the category, is set to present at the conference. 5
The risk for Nike remains clear: if demand lags or the company leans more heavily on promotions to move inventory, margins could suffer further. A sluggish rebound in China or ongoing cost pressures from tariffs and shipping would add to the strain after a rocky year of mixed results.
Traders are now focused on fresh cues from this week’s ICR meetings, followed by Nike’s earnings report set for March 19. Investors want to see clearer signs of margin improvement, developments in China, and how wholesale gains stack up against ongoing direct-to-consumer challenges. 6
