NEW YORK, Jan 9, 2026, 19:35 (EST) — After-hours
Nike shares rose 1% on Friday to close at $65.92, as investors looked past a fresh analyst downgrade and a round of headlines around the company’s cleanup effort. The stock was little changed in extended trade.
Needham downgraded Nike to “hold” from “buy” on Thursday, saying the turnaround is moving more slowly than expected. The firm flagged “sell-in” — shipments into retailers — and said heavier product flows into North American wholesale could bring “near-term challenges” if “brand heat” does not keep up; it also warned that China and Converse look “uncertain.”
Nike also confirmed it sold RTFKT, the digital products unit it bought in 2021, to an unnamed buyer, without disclosing financial terms. “RTFKT transitioned to a new owner on December 17,” a company spokesperson said in a statement carried by Retail Dive.
The downgrade and the sale land while Nike is still trying to reset its mix — pushing less inventory through promotions and getting its wholesale and digital engines pulling in the same direction again. In its most recent quarterly report, Nike said wholesale revenue rose 8% while Nike Direct, its direct-to-consumer business, fell 8%; gross margin dropped 300 basis points (3 percentage points) to 40.6%.
Friday’s gain came in a strong session for U.S. stocks, with Nike outperforming some apparel peers. VF Corp slipped 1.6% and Under Armour fell about 6%, while Nike’s volume was slightly below its 50-day average, MarketWatch data showed.
On the chart, traders are watching whether Nike can hold the mid-$60s after a sharp run over the past two sessions. Barchart data showed first resistance near $66.84, with support levels around $64.70 and $63.48 — common reference points for short-term buyers and sellers.
Macro data could complicate that setup next week, especially for consumer names sensitive to rates and spending. The Labor Department is scheduled to publish December’s consumer price index (CPI) inflation report on Jan. 13, followed by U.S. retail sales on Jan. 14, and investors are already looking ahead to the Federal Reserve’s Jan. 27-28 policy meeting.
But the stock is still exposed if Nike’s inventory push turns into another round of markdowns, or if China stays soft longer than the Street expects. Needham said China “appears highly problematic” and argued consensus profit estimates for the next 12-24 months “look too high,” raising the risk of further earnings cuts.
The next hard catalyst is Nike’s next earnings report, expected on March 19 after the close, according to MarketBeat’s earnings calendar. Investors will be listening for any new detail on China demand, Converse traction and whether Nike can rebuild pricing power without leaning on promotions.
