economy
Nike drops on what Cramer calls a 'damning' downgrade. His plans next for the stock
"It's a very hard business," Jim Cramer acknowledged.
TL;DR
- Nike's stock dropped 3% on Friday after Piper Sandler downgraded it to a hold-equivalent rating and cut its price target.
- Analysts cited concerns about CEO Elliott Hill's leadership appointments, the saturation of the athleisure market, and Nike's dependence on classic brands.
- Nike reported flat revenue and a 35% year-over-year drop in earnings per share for its fiscal 2026 third quarter.
- Guidance for fiscal Q4 was also disappointing, with analysts expecting a return to annual sales growth not until early 2027.
- Nike's top innovation executive is leaving the company, to be replaced by Andy Caine.
- Jim Cramer acknowledged the difficult business environment but stated he is inclined to stay with the stock for now, despite the lack of a clear catalyst.