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Why Is Everyone Talking About Nike Stock?
The Motley Fool· 2024-10-12 11:45
Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nike. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...
How Much Will Nike Pay Out in Dividends in 2025?
The Motley Fool· 2024-10-11 13:18
Nike has raised dividends annually for two decades. Investors often count on dividends to provide regular income. For those wondering how much to expect from a stock holding, it's possible to calculate a company's expected dividends for the next year based on simple math and some assumptions. Nike (NKE -0.42%) has a long history of paying dividends. How much can investors expect to receive in 2025? Calculating the payout Nike currently pays a $0.37 per share quarterly dividend. The company repurchased about ...
Is Nike Stock in Trouble?
The Motley Fool· 2024-10-11 09:45
Nike's stock is trading around multi-year lows.Shares of apparel and footwear company Nike (NKE -0.42%) are down more than 25% this year, as the company is struggling to generate much growth of late. It has made changes at the top, with a new CEO coming on board. The company also recently pulled its guidance. There's been a lot of noise surrounding Nike, and none of it has been good.Could now be a good time to take a contrarian position in the consumer goods stock, or should investors hold off on buying Nik ...
Nike's Forward March Hits Speed Bumps: Analyst Identifies Red Flags In SEC Filing
Benzinga· 2024-10-09 16:12
JPMorgan analyst Matthew R. Boss flagged several troubling signs for Nike Inc NKE, which may have investors tightening their seatbelts.Boss maintains a neutral rating with a price target of $77 for December 2025 on Nike stock. His insights from the filing reveal potential challenges that could impact Nike’s growth trajectory.Ominous Omission: Supply Chain ConcernsA significant red flag Boss noticed in Nike’s latest 10-Q filing is the absence of the "Supply Chain Conditions" reference, a staple in previous q ...
Should You Follow Billionaire Investor Bill Ackman and Buy Nike Stock Today?
The Motley Fool· 2024-10-08 15:06
Nike stock is down close to 25% this year.In this video, I will talk about Nike's (NKE -0.89%) recent earnings report and why billionaire investor Bill Ackman bought the stock. Check out the short video to learn more, consider subscribing, and click the special offer link below.*Stock prices used were from the trading day of Oct. 7, 2024. The video was published on Oct. 8, 2024. ...
Decoding Nike Inc (NKE): A Strategic SWOT Insight
Gurufocus· 2024-10-08 04:02
On October 7, 2024, Nike Inc (NKE, Financial) filed its 10-Q report, revealing a mixed financial performance with revenues of $11.589 billion, a decrease from the previous year's $12.939 billion. Despite this decline, the company maintained a strong gross profit of $5.257 billion, though it was lower than the prior year's $5.720 billion. Net income also experienced a downturn, coming in at $1.051 billion compared to $1.450 billion in the previous year. This financial overview sets the stage for a deeper SWO ...
NIKE(NKE) - 2025 Q1 - Quarterly Report
2024-10-07 20:20
Revenue Performance - NIKE, Inc. revenues for Q1 fiscal 2025 were $11.6 billion, a 10% decrease compared to $12.9 billion in Q1 fiscal 2024[75][83] - NIKE Direct revenues were $4.7 billion in Q1 fiscal 2025, representing 42% of total NIKE Brand revenues, a decrease from $5.4 billion in Q1 fiscal 2024[75] - NIKE Brand wholesale revenues decreased to $6.4 billion in Q1 fiscal 2025 from $7.0 billion in Q1 fiscal 2024[75] - Total NIKE, Inc. revenues decreased by 10% to $11,589 million, with North America revenues down 11% to $4,826 million and EMEA revenues down 13% to $3,143 million[92] - Greater China revenues decreased by 3% on a currency-neutral basis to $1,666 million, with footwear revenues down 2% and apparel revenues down 9%[98] - Asia Pacific & Latin America total revenues decreased 7% to $1,462 million, with footwear revenues down 8% and apparel revenues down 6%[102] - Converse revenues decreased 14% on a currency-neutral basis, with wholesale revenues down 16% and direct to consumer revenues down 15%[106] Gross Margin and Cost Management - Gross margin increased by 120 basis points to 45.4% in Q1 fiscal 2025, driven by lower product costs, warehousing, and logistics costs, and strategic pricing actions[75][85] - Gross margin expanded by 180 basis points in North America and 190 basis points in EMEA, driven by lower product costs and warehousing expenses[95][97] - Reported EBIT decreased 4% due to gross margin contraction of approximately 170 basis points and a 5% decrease in selling and administrative expenses[101] - Converse's earnings before interest and taxes decreased 28% to $121 million, reflecting lower revenues and gross margin contraction of approximately 50 basis points[106] Earnings and Profitability - EBIT for Q1 fiscal 2025 was $1.264 billion, a decrease from $1.614 billion in Q1 fiscal 2024, with EBIT margin dropping to 10.9% from 12.5%[77][78] - Net income for Q1 fiscal 2025 was $1.051 billion, a 28% decrease compared to $1.450 billion in Q1 fiscal 2024[81] - NIKE Brand EBIT decreased by 20% to $1,685 million, with North America EBIT down 15% to $1,216 million and EMEA EBIT down 15% to $792 million[92] - Global Brand Divisions' loss before interest and taxes increased 2%, driven by higher demand creation expense partially offset by lower operating overhead expense[105] - Corporate's loss before interest and taxes decreased by $109 million, primarily due to lower wage-related expenses and favorable foreign currency impacts[109] Inventory and Product Sales - Inventories as of August 31, 2024, were $8.3 billion, a 10% increase compared to May 31, 2024, primarily due to an increase in units[75] - NIKE Brand footwear revenues decreased 10% on a currency-neutral basis, with unit sales down 10% and average selling price (ASP) flat[84] - NIKE Brand apparel revenues decreased 9% on a currency-neutral basis, with unit sales down 12% but higher ASP contributing 3 percentage points of growth[84] - EMEA footwear revenues decreased by 12% on a currency-neutral basis, with unit sales down 13% and higher ASP contributing 1 percentage point of growth[96][97] - Footwear revenues decreased 2% on a currency-neutral basis, with unit sales down 1% and lower ASP per pair reducing revenues by approximately 1 percentage point[99] - Apparel revenues decreased 9% on a currency-neutral basis, with unit sales down 15% but higher ASP per unit contributing approximately 6 percentage points of revenue growth[99] Digital and Direct Sales - NIKE Brand Digital sales declined 20% on a currency-neutral basis, contributing to a 12% decrease in NIKE Direct revenues[84] - NIKE Direct revenues in North America decreased by 11% to $2,351 million, with digital sales declining by 15% and comparable store sales growing by 1%[94][95] - Greater China revenues decreased 3% on a currency-neutral basis, with NIKE Direct revenues down 16% due to digital sales declines of 34% and comparable store sales declines of 8%[99] - APLA revenues decreased 2% on a currency-neutral basis, with NIKE Direct revenues down 4% due to digital sales declines of 15%[103] Expenses and Overhead - Total selling and administrative expenses decreased by 2% to $4,048 million, with demand creation expense increasing by 15% to $1,226 million and operating overhead expense decreasing by 7% to $2,822 million[87] - Selling and administrative expenses in EMEA decreased by 2%, with lower operating overhead partially offset by higher demand creation expense[97] Foreign Exchange Impact - Foreign exchange rate fluctuations negatively impacted consolidated revenues by approximately $159 million for the three months ended August 31, 2024[114] - Foreign exchange rate fluctuations negatively impacted income before taxes by approximately $40 million for the three months ended August 31, 2024[114] Cash Flow and Share Repurchases - Cash provided by operations was an inflow of $394 million for the first three months of fiscal 2025, compared to an outflow of $66 million for the same period in fiscal 2024[116] - Net income, adjusted for non-cash items, generated $1,358 million of operating cash inflow for the first three months of fiscal 2025, compared to $1,757 million for the same period in fiscal 2024[116] - Cash used by investing activities was an outflow of $166 million for the first three months of fiscal 2025, compared to an inflow of $418 million for the same period in fiscal 2024[116] - Cash used by financing activities was an outflow of $1,622 million for the first three months of fiscal 2025, compared to an outflow of $1,599 million for the same period in fiscal 2024[116] - The company repurchased 14.8 million shares of Class B Common Stock for $1,193 million (average price of $80.60 per share) in the first three months of fiscal 2025[116] - As of August 31, 2024, the company had repurchased 99.7 million shares at a cost of approximately $10.2 billion (average price of $102.78 per share) under the $18 billion share repurchase program[116] Cash and Investments - The company had cash and equivalents and short-term investments totaling $10.3 billion as of August 31, 2024[118] - The weighted average days to maturity of the company's cash equivalents and short-term investments portfolio was 85 days as of August 31, 2024[118] Other Income and Tax - Other (income) expense, net increased from $10 million to $55 million, primarily due to favorable foreign currency conversion gains and losses[88][89] - Effective tax rate increased by 760 basis points to 19.6% in Q1 FY2025 compared to 12.0% in Q1 FY2024, driven by a one-time benefit in the prior year[90]
Nike (NKE) Revenue Drops in Q1 2025 Amid Decreasing Profits
Gurufocus· 2024-10-07 14:31
Nike (NKE, Financial) shares declined more than 1.3%, closing at $81.17. The company's financial report for the first quarter of fiscal year 2025, which ended on August 31, 2024, showed revenues of $11.589 billion, marking a 10% decrease compared to the previous year. Net income also fell by 28% to $1.051 billion during the same period.Revenues from the Greater China region reached $1.666 billion, reflecting a 4% decrease year-over-year. ...
Nike Shares Slide as Sales Slump. Can the New CEO Help the Stock Rebound?
The Motley Fool· 2024-10-06 10:05
A turnaround is unlikely to happen overnight.Nike (NKE 0.18%) shares sank after the athletic apparel and footwear company reported disappointing sales and pulled its guidance for the year. The stock is now down more than 20% year to date.The company also delayed its upcoming investor day as its new CEO is gearing up to take over later this month and lay out his plan for helping turn around the company. Let's take a closer look at Nike's most recent quarterly results and see if its new CEO can implement a pl ...
Prediction: Nike Could Be Headed to $100 in 2025
The Motley Fool· 2024-10-06 08:45
It's been a difficult ride for shareholders of this sportswear giant.Nike (NKE 0.18%) is going through an extremely difficult stretch in its corporate history. The business is dealing with soft demand trends, and it just recently announced a major leadership change.Therefore, it's no wonder this top consumer discretionary stock has dropped 13% in the past 12 months. That's during a time that saw the S&P 500 put up a total return of 35%.But I believe that Nike shares could rise 20% and head to $100 in one ye ...