Core Insights - Nike has experienced a significant decline in stock price, dropping from $180 to around $70 over the past four years due to competitive, distribution, and management challenges [1] - Despite a recent quarterly earnings report that beat expectations for earnings per share and revenue, analyst price targets for Nike stock vary widely, indicating uncertainty about its future direction [2] - The stock is currently trading at a high valuation of 41 times forward earnings, suggesting it is expensive even if it has stopped declining [3] Financial Performance - Nike's recent quarterly earnings report showed a positive performance, but the stock has since fallen significantly, erasing gains from the previous earnings release [5] - The stock's performance has been poor since late August, indicating a need for risk management strategies [5] Market Sentiment - Analysts' ratings, including an average "Moderate Buy," are not providing clear guidance on the stock's future trajectory [2] - The stock's technical indicators suggest a concerning trend, with the Percentage Price Oscillator indicating a potential downturn similar to past significant declines [6] Long-Term Outlook - There are indications that Nike may require a long-term strategy for recovery, with potential signs of a bottom forming in the stock [7]

This story was originally published on CFO Dive. To receive daily news and insights, subscribe to our free daily CFO Dive newsletter. Dive Brief: Nike expects to incur $1.5 billion in tariff costs this year, up from its prior estimate of $1 billion, CFO Matthew Friend said Tuesday. The athletic footwear and apparel giant raised its estimate due to new reciprocal tariff rates that have taken effect since the last quarter, Friend said in an earnings call. “We are monitoring developments closely, and I re ...

Market Overview - The U.S. is experiencing its first government shutdown in seven years, raising concerns about its implications for the markets [9][10] - All three major indices opened lower, with the Dow down 0.2%, Nasdaq down 0.6%, and S&P 500 down 0.4% [4][8] - Despite the government shutdown, the S&P 500 has shown a 3% increase over the past month, indicating some resilience in the market [5][6] Economic Data and Federal Reserve - The government shutdown will prevent the release of key economic data, including the jobs report and potentially the CPI, complicating the Federal Reserve's decision-making [11][30] - The Fed may have to rely on private data due to the lack of official reports, which could lead to uncertainty in monetary policy [15][16] - Core CPI has accelerated for four consecutive months, raising concerns about inflation risks despite a weakening job market [31][32] Company Focus: Nike - Nike's revenue unexpectedly increased by 1% to $11.02 billion, contrary to expectations of a nearly 5% decline, which has positively impacted its stock [36][37] - The company anticipates a $1.5 billion hit from tariffs, an increase from the previous estimate of $1 billion, affecting its margins [38][40] - Nike's U.S. running business saw a significant 20% increase, while challenges remain in the Chinese market due to lower foot traffic and promotional pricing [44][49] Investment Sentiment - Analysts express cautious optimism regarding Nike's turnaround plan, emphasizing the need for sustained revenue growth and effective management of tariff impacts [42][43] - The market remains focused on the potential for further layoffs in the government sector, which could exacerbate existing labor market weaknesses [24][25] - There is a general bullish sentiment around gold and other precious metals, driven by a weakening dollar and ongoing central bank purchases [20][21]

Core Insights - Nike Inc. reported strong fiscal first-quarter results, with earnings of 49 cents per share, surpassing the consensus estimate of 28 cents per share, driven by broad-based revenue growth [2][4] - The company experienced a year-over-year revenue growth of 1.1%, which exceeded expectations of a 4.8% decline, indicating a positive inflection point across approximately 85% of its sales mix [2][4] - Management provided guidance for second-quarter revenues to decline by low single digits, with gross margin contraction expected between 300 to 375 basis points [3] Financial Performance - Nike's North America sales grew by 4% in constant currency terms, with wholesale sales increasing by 11% [7] - Revenue from the running category grew over 20% in the fiscal first quarter, accelerating from high-single-digit growth in the previous quarter [8] - Wholesale order books for Spring 2026 are up year-over-year, contributing to a positive outlook for the upcoming holiday season [8] Analyst Ratings and Price Targets - JPMorgan raised its price target for Nike from $93 to $100 while maintaining an Overweight rating [9] - Goldman Sachs lifted its price target from $85 to $89, reaffirming a Buy rating [9] - BofA Securities maintained a Buy rating with a price target of $84, while Telsey Advisory Group reiterated a Market Perform rating with a price target of $74 [9]

Key Takeaways NIKE's Q1 EPS dropped 30% but still beat estimates, while revenues rose 1% to $11.72B.Wholesale sales gained 7%, offsetting a 4% fall in NIKE Direct, led by digital weakness.Q2 guidance calls for a low-single-digit sales decline and a 300-375 bps margin contraction.NIKE Inc. (NKE) reported first-quarter fiscal 2026 results, wherein the top and bottom lines beat the Zacks Consensus Estimate. While the revenues improved on a year-over-year basis, earnings per share (EPS) declined. The company’s ...

Let's bring in an analyst who was very skeptical back in the in the Dano days. Senior equity analyst Sam Poser now has a buy rating $100 price target on the stock. Sam, you like what you see.>> I do. I mean, look, I knew this was going to be a lot of work. I And I had expected to hear positive uh things today or last night uh about what was coming in the future and we're seeing the little pieces of it.Um, but you know, it takes a long time to create new product, bring it to market, and they've had little pi ...

Let's bring in an analyst who was very skeptical back in the in the Dano days. Senior equity analyst Sam Poser now has a buy rating $100 price target on the stock. Sam, you like what you see.>> I do. I mean, look, I knew this was going to be a lot of work. I And I had expected to hear positive uh things today or last night uh about what was coming in the future and we're seeing the little pieces of it.Um, but you know, it takes a long time to create new product, bring it to market, and they've had little pi ...

Nike Inc. shares rose more than 3% on Wednesday after the athletic apparel maker posted better-than-expected fiscal first-quarter results, topping Wall Street forecasts for both revenue and net income... ...

Nike - Nike reported better-than-expected earnings, with EPS at 49 cents, surpassing the street's expectation of 48 cents [2] - Revenue reached $11.7 billion, up 1% year-over-year, indicating a positive trend for the company [3] - Gross margins declined due to weaker demand and tariffs, with an expected annual impact of $1.5 billion from tariffs [4][7] - Wholesale sales increased, suggesting improved relationships with retail partners, while own stores and digital sales saw a decline [4][5] - North America sales rose by 4%, but there was weakness in the Chinese market [5] - The company is shifting focus back to running and training shoes, and collaborations, such as with Skims, are helping attract more female customers [6] Carvana - Carvana received an upgrade to a buy rating from Jeff, with a new price target of $475, indicating potential upside [8] - The company is well-positioned to benefit from the digital shift in used car sales, with about 30% of adults preferring to buy cars online [9][10] - Projections indicate that Carvana could capture 10% of the online car sales market, with revenue estimates for 2027 expected to be 15-12% above consensus [10][11] Marvell - Marvell was downgraded to a hold rating by TD Colin, with a reduced price target of $85, down from a previous target of $90 [13] - The downgrade follows a significant stock increase of over 30% in the past month, leading to a balanced risk-reward scenario [14] - Concerns exist regarding limited visibility on growth drivers, particularly custom chips, with expectations of flat revenue in 2026 [15]

Athletic retailer Nike Inc (NYSE:NKE) posted a fiscal first-quarter earnings and revenue beat this morning. The company warned holiday season sales could be weaker than usual, though, and noted the impact of higher tariff costs. NKE is still up 3.2% to trade at $71.92 at last check.At least six analysts hiked their price targets after the results, the highest coming from J.P. Morgan Securities to $100 from $93. Analysts already lean bullish on NKE, with 19 of the 36 in coverage calling it a "buy" or better, ...