KeyBanc Trims Nike (NKE) Target but Sees Early Signs of Stabilization

Core Viewpoint - NIKE, Inc. is facing challenges in recovering market share and is implementing layoffs and operational changes to improve profitability and efficiency [2][3][4]. Group 1: Financial Adjustments - KeyBanc has reduced its price target for NIKE from $90 to $75 while maintaining an Overweight rating, indicating early signs of business stabilization [2]. - The company is undergoing layoffs, with approximately 775 employees being cut, primarily from distribution centers in Tennessee and Mississippi [3][5]. Group 2: Operational Changes - The layoffs are part of a broader strategy to strengthen and streamline operations, allowing NIKE to operate with greater discipline and speed [5]. - Previous rounds of job cuts included a reduction of nearly 1% of the corporate workforce in August and about 2% in February 2024, totaling over 1,600 roles [4]. Group 3: Market Position - NIKE is under pressure to regain lost market share to competitors, which has prompted these operational and workforce adjustments [4]. - As of May 2025, NIKE employed around 77,800 people globally, including retail and part-time staff [5].