Following its removal from the S&P 100, Nike faces another setback as Bank of America cuts its price target to USD $30, citing weakening demand, mounting competition and a prolonged turnaround.
Nike’s troubles are deepening, with Wall Street sentiment towards the sportswear giant reportedly at its lowest level in 25 years. Bank of America has downgraded the company from neutral to underperform, slashing its price target from $47 to $30 and forecasting declining sales through fiscal 2027. The move follows Nike’s removal from the S&P 100 earlier this month, after a prolonged share price decline that has wiped nearly 80% off its value since its 2021 peak.
The downturn follows years of strategic challenges. Nike’s aggressive shift towards direct-to-consumer sales weakened its relationships with wholesale retailers, creating opportunities for competitors including On and Hoka to gain market share. At the same time, declining demand for its established lifestyle franchises and disappointing new product launches have complicated efforts to restore growth.
Bank of America’s latest assessment raises further concerns about Nike’s wholesale recovery. While North American wholesale sales grew 14% in fiscal 2026, products have been selling to consumers more slowly than expected, potentially putting future retailer orders at risk. In China, weak sportswear demand, excess inventory and continued promotional pressure are adding to the company’s difficulties.
CEO Elliott Hill, who returned to Nike in 2024, has been pursuing a turnaround strategy focused on rebuilding wholesale partnerships, reducing reliance on established sneaker franchises and accelerating performance-led innovation. However, Bank of America has pushed back its recovery expectations by a full fiscal year, cutting its earnings estimates for fiscal 2027 and 2028 by 11% and 12%, respectively.
The financial setbacks come as Nike faces growing competition for both consumer spending and cultural influence. With newer sportswear brands gaining ground and its traditional lifestyle categories under pressure, the company’s efforts to regain market share will be closely watched when it reports its next quarterly earnings.