Nike earnings to be 'progress report' rather than inflection point, says Jefferies' Konik

Core Viewpoint - Nike's stock has seen a decline of 15% since CEO Elliot Hill took over, but analysts see a potential upside of 60% with a price target of $115 [1] Company Performance - Nike's athletic footwear category is expected to grow at a rate of 5% annually due to global casualization trends [2] - The company has lost market share in recent years but is expected to regain it under new leadership, which will help spark sales growth [3] - Upcoming quarters are anticipated to show a significant improvement in comparisons, with operating income declines projected at 50% and 90% for the fiscal third and fourth quarters, respectively [4][5] Management Strategy - The new management is focused on reasserting Nike's presence in product innovation and distribution, which had been neglected under the previous CEO [6] - The current earnings report is viewed as a progress report rather than a definitive turnaround, with expectations of a revenue decline of about 5% this quarter compared to a 12% decline last quarter [7] - Future quarters are expected to approach flat revenue growth, with a notable inflection anticipated as comparisons become easier later in the fiscal year [8]