11:14 AM EDT, 06/13/2025 (MT Newswires) -- Nike ( NKE ) likely saw sales and margin pressure peak in Q4 as the company cleaned up excess inventory, BofA Securities analysts said in a note Friday ahead of the company's quarterly results due later this month.

Analysts lowered their full-year fiscal 2026 EPS estimate to $1.80 from $2.00, citing weaker China demand and foreign exchange impact. The fiscal 2027 EPS estimate was roughly maintained at $3.00 from $3.02 previously, the investment firm said.

The focus is shifting from Q4 performance to Nike's ( NKE ) guidance, particularly around inventory normalization and the timing of a sales rebound in fiscal 2026, BofA said.

Nike ( NKE ) has begun raising prices selectively, mostly on adult footwear priced above $100, while keeping entry-level and kids' pricing unchanged to protect affordability, according to BofA.

Fall 2025 wholesale orders are slightly down, but interest in spring 2026 innovations from partners remains high, especially in performance segments, BofA analysts noted.

The pace of recovery in fiscal 2026 will likely drive the stock's performance, with management expected to address visibility on sales and channel trends during the earnings call, according to the note.

BofA maintained a buy rating for Nike ( NKE ) with a $80 price target.

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