NEW YORK, Jan 9, 2026, 14:05 (EST) — Regular session
- Nike shares rose about 0.6% in afternoon trade after a report said it sold the RTFKT unit
- Needham downgraded Nike to Hold, flagging China and U.S. wholesale inventory risk
- Investors are now looking ahead to Nike’s next quarterly results on March 19
Nike, Inc. shares rose 0.6% to $65.64 in afternoon trade on Friday after a report said the sportswear maker sold RTFKT, its digital products unit. Nike said the business transitioned to a new owner on Dec. 17. The stock traded between $64.46 and $66.52. 1
The move lands as Nike tries to tighten its story. Investors have been picking over every sign that the company is cutting side bets and putting cash and attention back into shoes, apparel and the wholesale relationships it has been rebuilding.
That focus has not settled Wall Street. Needham analyst Tom Nikic downgraded Nike to Hold from Buy, writing that China “appears highly problematic” and that consensus estimates for the next 12–24 months “look too high.” He also pointed to elevated “sell-in” to U.S. wholesale partners — the shipments into retailers, not what shoppers actually buy at the register. 2
Needham said Nike’s sell-in to North American wholesale channels rose 24% in the latest quarter and 11% in the prior one, a pace it warned could turn into an inventory problem if demand does not keep up. The firm said it had limited visibility into the metrics it would want to see improve. 3
In the same round of sector calls, Needham said it expects a more constructive backdrop for apparel and footwear in 2026 and shifted its conviction picks elsewhere, adding VF Corp and removing Deckers Outdoor while keeping Nike under closer scrutiny. 4
Nike’s stock has swung this week, rising 3.2% on Thursday after a 3.3% drop a day earlier, leaving traders jumpy about headline-driven moves in the name. 5
But selling RTFKT does not fix what has been weighing on the shares: pressure on direct sales and margins. In its latest quarterly results, Nike said NIKE Direct revenue fell 8% and NIKE Brand Digital dropped 14%, while gross margin slid 300 basis points to 40.6%, which it tied in part to higher tariffs in North America. 6
Nike is scheduled to report quarterly results on March 19 after the close, according to TipRanks. Investors will be watching for any clearer read on demand in North America and Greater China, the pace of inventory flowing through wholesale partners, and whether management’s reset shows up in guidance. 7
