By Nate Wolf
Nike shares have been on a steep decline for nearly five years, but even the looming FIFA World Cup doesn't make this the right time to buy the dip, according to analysts.
RBC Capital Markets downgraded Nike stock to Sector Perform from Outperform and lowered its price target to $50 from $70 in a research note Wednesday. Citi issued a similar warning for investors, reiterating a Neutral rating on the stock and slashing its price target to $47 from $53.
Nike stock was down 0.9% to $44.26 on Wednesday. Shares have plummeted 73% since hitting an all-time closing high of $177.51 on Nov. 5, 2021.
The swoosh may outperform Wall Street's expectations when it reports fiscal fourth-quarter earnings on June 30. And the World Cup -- which begins Thursday and will stretch across the U.S., Mexico, and Canada over the next month -- already may be padding Nike's pockets through wholesale distribution. That isn't a guarantee of sustainable growth, though.
"Execution speed is not as quick as we would like on product and inventory clearance, with the remainder of cal-2026 unlikely to deliver positive revenue growth," wrote RBC analyst Piral Dadhania.
While a World Cup-related wholesale boost looks feasible to RBC, an improvement in Nike's direct-to-consumer business isn't as likely. All told, the firm sees Nike's revenue growing at around 3% over the next three years, below the industry average of 6%.
When the mid-World Cup earnings print comes around this month, guidance for fiscal 2027 will be the main focus for investors, said Citi analyst Paul Lejuez.
Citi sees gross margins improving but sales pressure continuing in fiscal 2027. The firm expects earnings-per-share guidance of $1.55 to $1.75, up from the $1.49 expected for fiscal 2026. That is still not great: Nike put up per-share earnings between $3 and $4 each year from 2021 to 2024.
A comeback may be on the horizon at some point. Just don't expect the World Cup to return Nike to immediate glory.
Write to Nate Wolf at nate.wolf@barrons.com
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June 10, 2026 08:58 ET (12:58 GMT)
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