Jefferies analysts suggest that Nike could capitalise on the slowing sales of Deckers Outdoor's Hoka brand to regain its market share in athletic footwear. The analysis follows Deckers' report that Hoka sales grew by a mere 10% YoY in Q4 2025, a significant fall from the 24% and 35% growth in the preceding two quarters. Jefferies attributes this slowdown to a resurgence in Nike's innovation, better wholesale penetration and increased market share.
The analysts recognize Nike's brand awareness, a range of price points, and upcoming partnerships, including a collaboration with Kim Kardashian's SKIMS brand, as potential drivers of increased sales. They also suggest that Nike may benefit from the merger of Dick's Sporting Goods with Foot Locker, due to its strong relationship with both retailers.
However, despite this positive outlook, Nike's shares went down by around 2% Friday afternoon. Meanwhile, Deckers' shares plunged nearly 20% due to the company's decision to withhold its fiscal 2026 outlook amid tariff uncertainties.
Jefferies maintains a 'buy' rating on Nike and has set a $115 price target, which is nearly double the closing price of $61.32 last Thursday. The Street consensus hovers around $74, according to Visible Alpha.