JP Morgan cuts Nike's PT on elevated inventory, rising expenses

Brokerage JP Morgan cuts sportswear giant Nike's NKE.N PT to $56 from $64

Brokerage notes NKE has elevated inventory levels in categories, including apparel, which are spread across factory stores and wholesale partners

Remains "neutral" and forecasts fiscal 2026 consolidated revenue to decline 4.7%, owing to a rise in selling, general and administrative expenses

Expect NKE to prioritize brand reinvestments, even in the face of anticipated revenue headwinds associated with repositioning of marketplace and product portfolio - Matthew Boss, analyst with J.P.Morgan

Focus on lower-margin performance products over casual ones, more investment in lower-margin wholesale channels, underperformance in Greater China - most profitable region, could pressure NKE's gross margins in second half of FY26, says brokerage

Up to last close, stock down 22.6% YTD