NEW YORK, December 29, 2025, 10:56 ET — Regular session
- Nike shares dipped about 0.3% in morning trading, bucking a modestly weaker U.S. market.
- UBS kept a Neutral rating and a $62 price target after its latest global sportswear survey.
- Investors are still focused on China demand and tariff-driven margin pressure after Nike’s December results.
Nike shares were down about 0.3% at $60.77 in morning New York trading on Monday after UBS reiterated a Neutral rating and kept a $62 price target, its estimate of where the stock could trade over the next 12 months.
The note matters now because Nike’s stock has been volatile since its latest quarterly report, when the sportswear giant warned of continuing pressure on profitability and reported another sharp slide in China sales.
UBS’s survey work is closely watched because it offers a near-term read on brand perception and product availability — two areas CEO Elliott Hill has targeted as Nike tries to rebuild demand and repair distribution.
UBS analyst Jay Sole said the recovery was “moving in the right direction” but “may take longer than investors expect,” TipRanks reported. TipRanks+1
Nike traded between $60.31 and $61.72 earlier in the session. The SPDR S&P 500 ETF was down about 0.3% and the consumer-discretionary sector ETF fell about 0.7%.
Sportswear peers were steadier. On Holding rose about 1.4% and Under Armour climbed about 1.5%, while Deckers Outdoor was little changed.
UBS said more consumers now report Nike products are easy to find in stores and online, after Nike pushed back into the wholesale channel — selling through third-party retailers rather than only its own stores and website.
The survey also showed the share of consumers who say Nike is “good for doing sports” has climbed back to its 2019 peak, UBS said, reflecting Nike’s renewed focus on sports categories. Investing.com+1
Nike’s wholesale push can help regain shelf space, but it can also weigh on profitability because third-party stores typically sell at lower prices than a direct-to-consumer model.
Nike’s gross margin — profit after product costs — fell 300 basis points, or three percentage points, in the quarter ended Nov. 30, and the company said it expected another decline in the current quarter.
On the same earnings call, Nike said sales in China fell 17% for the sixth straight quarter, and CFO Matthew Friend said U.S. tariffs on key Southeast Asian sourcing countries would cost about $1.5 billion this year.
Nike forecast third-quarter revenue down in the low single digits, signaling that the holiday period would not be enough on its own to offset discounting and product resets.
The next test for investors is whether survey-driven signs of better availability and improving brand perception start to show up in sales and margin stabilization, particularly in China.
TipRanks’ earnings calendar lists Nike’s next report for March 19, 2026, after the close, though such calendars can change when companies formally confirm dates.
For now, UBS’s $62 target sits close to Nike’s current trading level, underscoring the market’s focus on proof that Hill’s turnaround can lift earnings power, not just sentiment.
