Investing.com — Newly appointed Nike CEO insider Eliott Hill has taken the reins amid increased near-term challenges for the apparel maker, Stifel analysts said in a note, as they assess risks to Nike’s quarterly earnings signaled.
Hill- who had joined Nike (NYSE:) in 1988 as an intern and took over as CEO in early October, replacing John Donahoe. The change in leadership came as the sportswear giant withdrew its annual revenue forecast and warned of an 8% to 10% decline in sales in the November quarter.
Stifel analysts said they welcomed a Nike insider leading the company, but cautioned that the company remained in “reset mode” and that it will take time to reinvigorate the company’s culture and drive brand momentum.
“For the stock, we struggle to support an upside outlook from current share levels as there is no evidence in the market of improved visibility of revenue stabilization/reversion,” Stiefel analysts said in a note.
The brokerage flagged the risk of Nike missing estimates when it reports November quarter results next week, amid less favorable exchange rate conditions and sluggish sales in China’s top market.
Stifel expects 2025 to be a transition year for Nike, amid increased promotional activity by the company to combat high competition and lagging sales.
The broker rates Nike at Hold with a price target of $79.0, just above Wednesday’s closing price of $78.85.
