Nike (NKE) shares surged 5.13% in a 24-hour period on Wednesday, reversing a recent downtrend as investors found optimism in Dick's Sporting Goods' quarterly results. The sportswear giant's stock has struggled in the past year, losing over 32%, but analysts see potential for a rebound based on the latest retail partner performance.

During Dick's Sporting Goods' earnings call, executives expressed satisfaction with their Nike partnership and excitement about the brand's new running and lifestyle gear. Dick's CEO Lauren Hobart noted that footwear, a key category for Nike, was performing strongly. This positive sentiment from a major retail partner suggests that Nike's wholesale recovery may be gaining traction.

Analysts at Jefferies highlighted the deepening partnership between Nike and Dick's, stating, "As [Dick's] expands its customer base, strengthens its footwear business and introduces new store formats, Nike stands to benefit from the retailer's momentum." They further predicted that this collaboration could support Nike's wholesale recovery and position the brand for a "V-shaped rebound" in fiscal 2027.

While Nike faces challenges from inflation-fatigued shoppers and increased competition, the positive signals from Dick's Sporting Goods' results appear to have reignited investor confidence. The stock's significant jump indicates that the market is reevaluating Nike's growth potential in light of these encouraging retail partner insights.