Nike stock tumbled Friday. The Dow Jones retailer posted a strong beat for Q3 2025 results, but its Q4 outlook prompted multiple price target cuts.
After Thursday's close, Nike reported earnings of 54 cents per share, down from 77 cents last year. Revenue declined 9% to $11.3 billion.
FactSet analysts expected earnings of 30 cents per share on $11.02 billion in revenue.
The Dow Jones retailer noted that North America revenue was down 4%, while sales in the greater China region fell 17%.
Nike brand revenues fell 9%, with a 12% drop in sales from its online business, Nike Direct.
Footwear sales for the quarter fell 12% to $7.21 billion.
Nike's inventories as of Feb. 28 totaled $7.5 billion, down 2% from last year.
CFO Matthew Friend in the release said the company is navigating a "dynamic" operating environment, but continues to focus on product innovation and "reigniting brand momentum through sport."
During the earnings call, Friend said that Nike expects Q4 revenues to be down in the low end of the mid-teens range. The company also expects gross margins to decline 400 basis points to 500 basis points, which includes President Trump's new tariffs on imports from Canada and Mexico.
Analysts Reactions
JPMorgan early Friday lowered its price target on Nike to 64 from 73 and kept a neutral rating on shares, The Fly reported. The firm said that Nike's Q4 revenue guidance and gross margin outlook translates to a Q4 EPS of about 3 cents, which is 90% below consensus. JPMorgan cut its 2026 EPS estimate to $1.23 from $1.54, which is about 50% below the current consensus.
UBS on Friday said it still sees risk that Nike's earning outlook deteriorates further. The firm isn't convinced that the retailer has improved its product assortment or marketing enough yet to guarantee that trends don't get worse. UBS lowered its price target on Nike stock to 66 from 73 and maintained a neutral rating on the shares.
Nike Stock
NKE stock pared declines to 5.5% Friday. Shares fell 8% in early trade.
Nike is down 10% in 2025 and continues to trade below its key moving averages.
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