Nike, Inc. (NKE.N): A Long Road Ahead: 10-Q Takeaways and Thoughts From Here

Deutsche Bank maintains a Hold rating on Nike (NKE.US) and lowers its price target to $33 from $37. Q1 EPS of $0.48 beat estimates (DB $0.41, Street $0.44), driven by margins and below-the-line items, though cFX revenue fell 5.0% YOY (Street -3.0%). Despite a quarter that should have benefited from major football-related demand drivers, footwear and apparel units declined 5% and 2%, and footwear ASPs decelerated to -1% YOY. Inventory remains elevated relative to sales, with EMEA and APLA posting their fourth and fifth consecutive quarters of negative sales-to-inventory spreads, and the removal of regional SSS disclosures is viewed as an incremental negative. Core Nike Sportswear was ~50% of 1Q27 revenue and, combined with Jordan, nearly two-thirds of the business remains under portfolio repositioning. DB lowers estimates across the board;