Core Viewpoint - Argus believes that Nike's long-term outlook remains bright despite intense competition and rising costs associated with overseas manufacturing, as the company is expected to continue dominating the sports apparel and footwear market through its strong marketing capabilities and professional athlete endorsements [1] Group 1: Financial Performance - Nike reported fourth-quarter revenue of $11.1 billion, a 12% year-over-year decline, but exceeded market expectations of $10.72 billion by 3.8% [1] - Adjusted earnings per share fell by 86% to $0.14, yet still beat expectations by $0.02 [1] - Sales in North America, Greater China, and Europe, the Middle East, and Africa experienced double-digit declines, but the actual declines were within expected ranges [1] Group 2: Analyst Insights - Analyst John Staszak upgraded Nike's stock rating from "Hold" to "Buy," with a target price of $85, indicating a 20% upside from the recent closing price [1] - Staszak noted that Nike's growth is expected to be driven by brand endorsements, focus on women's products, continuous product innovation, expansion of e-commerce sales, and recovery in the Chinese market [1] - Analysts believe that Nike is on the path to recovery, with confidence in the mid-term results of its "Win Now" strategy, despite facing significant cost challenges in reducing production in China [2] Group 3: Future Earnings Projections - Staszak revised Nike's earnings per share forecast for fiscal 2026 down from $3 to $1.80 and for fiscal 2027 down to $2.80 [2] - Analysts emphasize that Nike's brand strength and innovation are key drivers for revenue growth, with initiatives like returning to the Amazon platform and collaborations with SKIMS [2] - Patient investors are expected to benefit from Nike's strong balance sheet and stable dividend growth, laying the foundation for long-term growth despite the ongoing recovery process [2]