NIKE (NKE) and Target (TGT) have faced ongoing challenges, reflected in their weak quarterly results and inventory issues exacerbated by post-COVID consumer trends. Nike reported Q4 sales of $11.1 billion, a 12% year-over-year decline, with gross margins shrinking to 40.3% from 44.7% the previous year. In contrast, Target’s comparable store sales fell 5.7% year-over-year, although digital sales increased by 4.7% and same-day delivery saw a significant 36% rise.
Despite positive commentary around future quarters, both companies’ earnings per share (EPS) outlooks remain bearish following downward revisions by analysts. CFO Matthew Friend of Nike expressed optimism about navigating market challenges, suggesting that their “Win Now” actions are beginning to show positive effects. However, the current market response indicates a cautious approach may be prudent for investors until clearer signs of turnaround emerge.
