By Sarina Trangle

Nike sneakers released in collaboration with Caitlin Clark sold out "instantly," Jefferies said. Alika Jenner / Getty Images

Nike fever hasn't broken.

Shares of the sneaker giant extended their post-earnings climb with a 3% advance Tuesday, a day after the company released a shoe with WNBA superstar Caitlin Clark. The $190 sneakers—featuring colors that reference the guard's Indiana Fever jersey—"instantly" sold out, Jefferies wrote in a research note Monday.

After markets closed last Thursday, Nike (NKE) reported fourth-quarter results that beat analysts' expectations. Shares soared 15% Friday and—after ending 1% lower yesterday—resumed their ascent Tuesday, with Jefferies analysts noting that "buzz" about the shoes suggests that shares may still have room to grow.

The brand is tapping into the burgeoning women's sportswear market, the analysts said, and after releasing a new Kobe V prototype with Clark, Nike and the WNBA star are planning an "upcoming signature shoe release [that] could be even more impactful."

'A Bold Bet on Women'

"Nike's latest moves signal a bold bet on women, tapping into one of its fastest-growing segments within sport and unlocking fresh upside across its [8-billion-person total addressable market]," Jefferies wrote.

Women's basketball is becoming increasingly popular, with Jefferies noting WNBA viewership jumped 31% year-over-year and game attendance soared 48% in 2024. Women's shoes and sportswear sales are expected to outpace men's over the next five years, it added.

READ: Here's How Much Traders Expect Nike Stock to Move After Earnings Thursday

Jefferies has a $115 price target on Nike stock, well above the $77 average among analysts covering it tracked by Visible Alpha. Shares are trading around $73 Tuesday afternoon, and remain down 3.5% this year as the brand mounts a turnaround campaign.

Source: Investopedia