Nike's 'Just Do It' job looks bigger than advertised

By Reuters News

** Nike NKE.N is deepening its restructuring under CEO Elliott Hill as its woes in China intensify, announcing a plan to cut more jobs and shake up its global business divisions after the sportswear giant projected a surprisingly steep drop in full-year revenue

** Shares fall nearly 9% to $32.06 premarket

STEEP CLIMB

** Morgan Stanley ("underweight," PT: $27) says NKE must tap World Cup & Performance strength; worse-than-expected wholesale sell-through trends could linger and create bigger inventory builds vs. management’s order forecasts

** RBC Capital Markets ("sector perform," PT: $40) says things are "going to get worse before they get better", with management signaling impact from right-sizing initiatives through FY28E, while fixes needed in Jordan, Sportswear and Greater China appear larger than anticipated

** BTIG ("buy," PT: $50) expects continued pressure from Nike Sportswear, Jordan, and Greater China, including Greater China worsening from the first quarter

** Oppenheimer ("outperform") says it is still concerned that successful repositioning at NKE remains a way off and is likely to entail further "pain" in the nearer term

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