Nike Faces Multi-Year Sales Pressure as Ratings and Targets Fall

what happened

TradingView reports that Nike, Inc. Class B (NYSE:NKE) is trying to recover from a sharp share-price decline and a wave of analyst downgrades. S&P expects revenue to contract by more than 7% in fiscal 2027 and to fall again in 2028. Leverage is projected to reach about 1.0x in 2027 and 1.4x in 2028, while annual cash use is seen at roughly $1.2B for 2–3 years.

Several firms reduced their ratings and price targets after Nike’s quarterly results and outlook. Their concerns included soft sales, extensive promotions and a projected 7–9% revenue contraction in fiscal 2027. NKE has lost 47% year to date in 2026 and 77% over five years. Traders are watching for an improvement in sales and margins, along with evidence that the company can avoid another major reset.

Nike is revising its operating model, upgrading its supply chain and organizing the business into three regions. Greater China will become part of a broader Asia-Pacific region. From June, the company plans to offer products through Google’s Gemini chatbot and AI Mode. Nike is also examining a Formula 1 sponsorship and licensing arrangement to provide official teamwear from 2027, although discussions remain exploratory. It has already supplied Cadillac with F1-style apparel, including Dunk Low shoes linked to Cadillac’s Miami Grand Prix.

why it matters

The market focus is on whether Nike’s regional restructuring and digital sales initiatives can support revenue and margins while S&P’s outlook points to higher leverage and sustained cash burn.

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