11:39 AM EDT, 07/03/2024 (MT Newswires) -- Nike ( NKE ) needs to find its "next big thing" following the "highly disappointing" Q4 results as investors are focused on what it will take to boost the stock price, Wedbush Securities said in a note Wednesday.

Analysts, including Tom Nikic, said that previously, products like the Air Vapormax and Air Max 270 helped Nike ( NKE ) out of a rut in 2017. Introducing a new retro trend, like revitalizing the Dunk franchise in 2019, could also prove beneficial, following Adidas's success with models like the Samba and Gazelle, analysts said.

The company also needs to restore the exclusivity of the Jordan brand and the Dunk franchise, which have lost appeal due to oversaturation in the market. Nike ( NKE ) must rebuild its relationship with wholesale partners to boost demand, according to the note.

In June, there were only 16 "high heat" sneaker launches, a significant drop from 31 a year earlier. Among these, only 11 were from Nike ( NKE )/Jordan, down from 24 Nike ( NKE ) major launches last year, analysts said.

"Clearly, the company has a lot of work to do, and this will not be a 'quick fix'. But our hope is that with management seemingly more clear-headed about the mistakes they've

made, they can lean on Nike's ( NKE ) vast resources to begin the road to recovery in 2025," the analysts said.

The consensus for fiscal 2025 earnings per share two years ago was $5.50, but current guidance suggests earnings of only around $3 this year. Although FY25 guidance was "disappointing," Nike ( NKE ) expects sales to increase, the analysts added.

Price: 75.14, Change: -0.90, Percent Change: -1.18