Nike stock soars after better than feared Q4 2025 results

Nike The company has increased by 17% after something better than the fourth quarter earnings report that the company is behind the worst of its struggles and a better financial fourth quarter earnings report.

On Thursday, Nike reiterated that he would receive the largest financial hit from his return plan for the quarter, and he would have worried about the tariff increases of President Donald Trump for key Nike production centers such as China and Vietnam.

Since Nike fell by 12%, net income fell by 86% and profit margins decreased. However, CEO Elliott Hill emphasized that the collapse of the company emerged from the worst and that the slide in sales and profit will begin to be moderate in the coming quarters.

“The results we reported in the quarter of the quarter and FY25 are not in accordance with the Nike standard, but as we said 90 days ago, a call for a profit in the name of the company’s return on the name of the company’s return now,” Hill calls for a re -positioning. He said. “From here, we expect our business results to recover. It’s time to return the page.”

With a few details about the progress of Nike’s return strategies in the launch of the company’s earnings, the stocks fell on Thursday when the closing bell sent results. At the end of a one -hour call with Nike managers and Wall Street analysts, the stock increased by more than 10% in long transactions.

Beyond guaranteeing that a return plan to investors is working, Hill shared his efforts to reclaim wholesale partners, the main focus areas since Nike took over and Nike in October.

Hill shared the details behind Nike’s decision to start selling Amazon For the first time since 2019 and another priority for the company, women’s challenge to win shoppers.

During the quarter, the company launched products in more than 200 women’s LED stores, including Artizia and published its collection with WNBA star A’ja Wilson and said Hill was sold in three minutes.

Until Friday morning, the stock rose further after publishing rise comments about a large number of bank companies. HSBC In three and a half years, Nike upgraded to buy from the first purchase note on the stock.

The HSBC also increased the price target to $ 80 and reversed 28% from the closing of Thursday.

Analyst Erwan Rambourg in a research note, “We think it’s finally here,” “we think it’s finally here.” “We think that Nike’s sales have been recovered in the non -distant future and that there is concrete evidence that the margins to be repaired and the margins to be repaired, despite this negative tariff wind.

Nike’s consequences show that the company is a rebound on a time schedule of Wall Street. But don’t say return yet.

Sport shoe giant, weaker consumer feeling, increasing debt, tariffs and mass deportation expenditures and GDP questions about the GDP is trying to grow again in a shaky time for the economy.

According to LSEG, Nike expects the average -digit percentage of sales in the existing quarter in line with Wall Street’s 7% drop expectations.

It also has more jobs to clean the old lifestyle inventory from classic Dunks and Jordan lines. The efforts to liquidate the old inventory have reached profit margins and sales, because Nike had to rely on deep discounts, cleaning channels and non -price sector to clean this glut.

In the 2025 financial year ending last month, sales for classics such as Air Force 1, Air Jordan 1 and Dunks fell more than 20% compared to the previous year. Finance Chief Matt Friend said that in the fourth quarter, it rose to 30%, which affected sales of approximately 1 billion dollars.

Air Force 1 Inventory levels began to stabilize, but Nike is still trying to clean the supply of the Dunk Franchise, which will affect the company’s profit in the first half of the current financial year.

Both Hill and Friend said that Nike’s profit would be under pressure in the first half of the 2026 financial year because it works through the inventory and claims at higher costs than the tariffs. In the second half of the year, they said they expected the snow to heal.

However, when it comes to real sales growth, it is too early to say when the company will stop contraction.

When asked if there was any scenario that the company could return to revenue increase this year, Hill refused to share a timeline.

Hill, “Just because of everything that happens, we will take 90 days every time.” He said. “We believe that full healing will take time.”