Nike Q1 trends ‘should mark the trough,’ says BofA

BofA says Nike’s Q1 earnings report “should mark the trough for sales growth and peak SG&A deleverage,” with the announcement that Elliott Hill will take over as CEO likely pushing out the timing of the Analyst Day and an update on the longer-term plan. However, the guidance cut debate “might be too early,” adds the firm, which expects Nike to reiterate its guidance. The firm, which believes a narrative of gradual improvement with milestones along the way “should pave a path to better stock performance,” reiterates a Buy rating and $104 price target on Nike shares.