New York, Jan 8, 2026, 20:46 (EST) — Market closed
- Nike shares closed up 3.2% at $65.26 on Thursday.
- Needham cut its rating to “hold,” citing a slower-than-expected turnaround.
- Nike sold its digital products unit RTFKT, with terms and buyer undisclosed.
Needham lowered its rating on Nike on Thursday, but the shoe giant’s shares still rose 3.2%, closing at $65.26 after hitting $65.73 earlier in the day. GuruFocus
The call comes as investors grapple with whether Nike’s reset under CEO Elliott Hill can spark demand without further squeezing margins. This follows the company’s recent caution over ongoing challenges in China and pressure on profits in its latest earnings. Hill told analysts last month the company was still “in the middle innings” of its recovery. Reuters
Needham analysts Tom Nikic and Matthew Quigley say the turnaround is dragging on longer than they expected, and visibility remains murky. They downgraded the stock to “hold” and removed their price target. “We believe that the turnaround is taking longer than expected,” they wrote. MarketWatch
Needham flagged what it called an aggressive “sell-in” to North American wholesalers — shipments jumped 24% last quarter, after an 11% rise the quarter before. That kind of surge sparks worries that stockpiles may soon outstrip real demand. The firm also highlighted uncertainties around China and Converse, warning that consensus estimates might be too optimistic about how fast earnings will rebound. Plus, Nike shares have grabbed nearly 15% from a post-earnings low, nearing its old $68 price target. Investing.com
Separately, Nike has sold off its digital products unit RTFKT, about a year after shutting it down, according to a Bloomberg report cited by Investing.com. A Nike spokesperson confirmed that RTFKT “transitioned to a new owner on December 17,” but wouldn’t disclose who bought it or the terms of the deal. Famous for its non-fungible tokens, or NFTs, RTFKT specializes in blockchain-based digital collectibles. Investing.com
Nike gained ground alongside fellow footwear and apparel companies like Under Armour and Deckers Outdoor, which also saw their shares edge higher. Meanwhile, the S&P 500 ended the day largely unchanged. MarketWatch
But the risk is still there. If wholesale shipments keep exceeding sell-through, inventory could get stuck in a loop of discounts and clearance sales. That chips away at gross margin — the part of sales remaining after production costs — and keeps the turnaround story on shaky ground, especially if demand in China stays uneven.
MarketScreener points out that Nike’s upcoming earnings report is scheduled for March 18. Traders are keeping a close eye on this date, looking for insights into inventory levels, sales momentum in China, and the pace at which the company is restoring its margins. MarketScreener
Before that, the next U.S. session starts with a major economic checkpoint: the Labor Department’s monthly jobs report arrives at 8:30 a.m. ET on Friday. This data often jolts forecasts for rate cuts and rattles consumer stocks. bls.gov
