Nike Stock Jumps 17% as CEO Signals Turnaround Progress

New York – Nike shares surged 17% on Friday, marking their best single-day gain in years after CEO Elliott Hill reassured investors that the company has moved past the worst phase of its turnaround plan.

Though Nike’s fourth-quarter results showed a 12% decline in sales and an 86% drop in net income, Hill emphasized that the athletic giant is on the road to recovery. Speaking on the company’s earnings call, he said the impact of restructuring efforts had peaked and better days were ahead.

“It’s time to turn the page,” Hill stated, referencing Nike’s internal “Win Now” strategy.

Wall Street Reacts Positively

Initially, Nike stock dipped following the earnings release. But during an hour-long investor call, the tone shifted. Shares rebounded sharply in after-hours trading, with renewed confidence bolstered by new product rollouts and strategic updates.

Hill highlighted Nike’s return to Amazon and success in women-led retail collaborations, including a sold-out launch with WNBA star A’ja Wilson.

By Friday morning, major banks including HSBC upgraded Nike to “Buy,” with a new price target of $80, suggesting a 28% upside. Analyst Erwan Rambourg noted the company now shows “tangible evidence” of a turnaround.

Challenges Remain

Despite the optimism, Nike faces ongoing hurdles:

• Inventory pressure from unsold classic sneakers like Dunks and Jordans

• Tariff-related costs from manufacturing hubs in China and Vietnam

• Muted consumer sentiment amid macroeconomic uncertainty

Nike still expects mid-single-digit sales declines in the current quarter. Executives acknowledged that profit margins will remain under pressure through the first half of fiscal 2026.

“We believe full recovery will take time,” Hill said, adding that Nike is evaluating progress “90 days at a time.”