Nike's Product Innovation Is The Most Important Catalyst For The Stock, Analyst Says

Group 1 - BofA Securities analyst Lorraine Hutchinson maintains a Buy rating on Nike Inc with a price target of $90.00, highlighting management's proactive measures to adjust the market and clear old inventory for new product launches [1] - The analyst projects third-quarter EPS of$0.22, indicating that the results will be less significant than the overall message regarding the product reset cycle and the traction of new products [2] - Management may delay offering an F26 outlook due to uncertainty surrounding the product reset and consumer spending trends [3] Group 2 - The analyst anticipates that management might provide insights into margin recovery for F26, but detailed earnings guidance is unlikely [4] - Margin risks are expected in the third quarter as management focuses on reducing lifestyle inventory through wholesale buybacks and markdowns [5] - Actions such as buying back products from retail partners will increase inventory on the balance sheet, but short-term margin pressure is seen as beneficial for stock outlook, indicating progress in clearing the way for new products [6] Group 3 - The earnings call may not reveal major product updates, but early successes in products like Vomero 18 or Pegasus Premium will be closely monitored as key catalysts to re-engage investors [7] - NKE shares closed lower by 0.53% at $73.31 on Tuesday, reflecting market sentiment [7]