Nike (NKE) faces a fresh challenge in its turnaround as younger consumers increasingly shift their attention and spending toward sports trading cards and memorabilia and away from limited-edition sneakers, UBS Securities said Tuesday in a report.

The sports-collectibles market rose 55% to $32.5 billion in 2025 from $21 billion in 2020, with trading cards representing the largest category, the report said. Collectibles may be absorbing some of the "cultural and financial" appeal that previously benefited Nike and Jordan sneakers, UBS said.

That shift may weaken Nike's connection with "sneakerheads," long a core group of brand advocates, the report said. US secondary-market prices for Nike sneakers in June fell 1.7% from a year earlier, reflecting "lackluster" demand, UBS said.

Collectibles may offer Nike a path to regain "cultural relevance," potentially through partnerships with trading-card companies, athletes and sports leagues, or by bundling exclusive Nike and Jordan cards with sneaker purchases to spark consumer "excitement," the report said.

UBS has a neutral rating on Nike with a price target of $48.

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