Nike, Inc. (NKE) is swiftly clearing inventory, signaling progress in its turnaround strategy to create room for new and improved products, according to a Wall Street analyst.

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Analysts at Jefferies visited a New York mall store recently and found the traffic "insane." A security guard informed the researchers that weekends were even busier.

Combined with efforts to innovate new products and fix its distribution and retail channels, Nike is making gains and should be well positioned ahead of this year's holiday season, the analysts said in a recent note, according to Dow Jones.

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Nike stock has been whacked hard following strategic missteps in recent years, and trades around levels last seen in late 2017.

The iconic sports apparel and accessories brand has struggled due to a miscalculated shift away from multi-brand retailers and rising competition from emerging brands.

In October, Nike brought back veteran Elliott Hill as its CEO, and he has since led a series of changes as part of a broad turnaround plan.

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Hill has said Nike will fix its relationships with retailers, refocus on its traditionally core areas like basketball and running, and sell more premium products.

However, the company now faces pressure from the new U.S. trade tariffs, which are set to hit its imports from Southeast Asian nations, including Vietnam.

Investors also worry that Chinese consumers will boycott U.S. brands in retaliation; however, some say the concerns are likely overblown.

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"Despite the tariff impact, we anticipate a V-shaped recovery in F'27 and recommend aggressively buying shares at these levels," Jefferies said in a note.

After six weeks of ending in the red, Nike shares gained 2.5% last week.

On Stocktwits, sentiment climbed to 'bullish' from 'neutral' a week ago, although message volume dropped to 'low'.

Screenshot 2025-04-21 at 7.41.51 AM.png — NKE sentiment and message volume as of April 20 | Source: Stocktwits

One user cautioned investors to be "mindful" and said the upside might come if it crosses at least $60.

Nike stock is down 26.3% year to date.

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