Key TakeawaysSeveral analysts lowered their price targets for Nike's stock Friday, concerned its turnaround could take longer than expected after the athletic apparel giant offered a sluggish outlook. Morgan Stanley analysts said Nike's weaker-than-expected forecast for the current quarter suggested its trajectory could "get worse before it can get better," with fiscal 2026 likely to be a "reset year."Nike shares have lost close to 30% of their value since the start of the year. Several analysts lowered the ...

NIKE Inc. (NKE) reported second-quarter fiscal 2025 results, wherein the top and bottom lines beat the Zacks Consensus Estimate. However, revenues and earnings per share (EPS) fell year over year. The company’s EPS of 78 cents declined 24% from the year-ago level. However, the figure beat the Zacks Consensus Estimate of 63 cents.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Revenues of the Swoosh brand owner declined 8% year over year to $12.35 billion but surpassed the Zacks Consen ...

Author Background - The author is a full-time value investor with a focus on classical value ratios such as low P/B, P/FCF, Owner Earnings discounting, PEG ratios, and the Graham Number [2] - The author advocates self-indexing primarily using the Dow Jones Industrial Average combined with Joel Greenblatt's Magic Formula for tax efficiency [2] - The author has a background in private credit and CRE mezzanine financing for a family office and is fluent in Mandarin, with significant experience in China and Asia [2] Article Context - The article discusses NIKE, Inc (NYSE: NKE) during a period of significant stock price drop and CEO transition [4] - The author holds a beneficial long position in NIKE, Inc (NYSE: NKE) and SPY through stock ownership, options, or other derivatives [4]

Nike Inc NKE analysts are highlighting the company’s new turnaround plan under CEO Elliott Hill with a focus on inventory, product innovation and wholesale partnerships being key takeaways Friday following the company’s second-quarter financial report.The Nike Analysts: Telsey analyst Cristina Fernández downgraded Nike shares from Outperform to Market Perform and lowered the price target from $93 to $80.JPMorgan analyst Matthew Boss maintained a Neutral rating and a price target of $73.Goldman Sachs analyst ...

The Puerto Venecia shopping center is packed with people during the Black Friday sales week, ... [+] Zaragoza, Spain. (Photo by: Nano Calvo/VW Pics/Universal Images Group via Getty Images)VW Pics/Universal Images Group via Getty ImagesNote: Nike’s FY’24 ended on May 31, 2024. A company designing, developing, and marketing footwear, apparel, equipment, and accessory products, Nike (NYSE: NKE), stock is down 28% since the beginning of this year, compared to 23% growth in the S&P 500 over the same period. In c ...

Nike stock jumped 10% after its quarterly figures were published.In this video, I will go over Nike's (NKE 0.41%) second-quarter earnings report and explain why the stock is dropping. Watch the short video to learn more, consider subscribing, and click the special offer link below.*Stock prices used were from the trading day of Dec. 19, 2024. The video was published on Dec. 20, 2024. ...

About this content About William Farrington William kickstarted his career as a researcher and reporter for a global legal publication, covering everything from public law to M&A. Before moving to Proactive Investors, he worked as a reporter for a major fintech company with a focus on cryptocurrency and blockchain technology. Harking from Queensland, Australia, William obtained first-class honours in journalism and media from Birkbeck University before going on to complete an MA in creative and critical ...

Nike's CEO Elliott Hill said that there are three things he wants to fix at Nike.One mistake was being "too promotional" and offering too many discounts.The company will also focus on five areas: running, basketball, training, football, and sportswear.Nike's new CEO said that two months into the job, he's working hard to fix three key mistakes that the sneaker maker has made in recent years.Advertisement Hill rejoined the company in October as chief executive after retiring from his post as president of ma ...

Nike’s journey back to profitability, spearheaded by a reinvigorated leadership team, marks a pivotal moment in the company’s storied history. With a new CEO at the helm, Nike is focusing on three core areas — product, brand and marketplace — as it seeks to return to its position as the global leader in athletic wear.Long synonymous with innovation and sport culture, Nike in recent years has endured some slippage. Over the past several quarters, Nike has faced challenges, including lower revenue and digital ...

Financial Data and Key Metrics - Q2 revenues were down 8% on a reported basis and down 9% on a currency-neutral basis, reflecting ongoing headwinds from franchise management actions [31] - Gross margins declined 100 basis points to 43.6% due to higher markdowns on NIKE Direct, wholesale discounts, and channel mix headwinds, partially offset by lower product costs and strategic pricing actions [31] - Earnings per share was $0.78 [31] - NIKE Direct declined 14%, with NIKE Digital down 21% and NIKE Stores down 2%, while wholesale was down 4% [31] - Inventory was flat versus the prior year, with footwear inventory declining and apparel and accessories inventory increasing [33] Business Line Performance - Sport performance field of play grew year-over-year, offset by a double-digit decline in sportswear [35] - Training: men's up high teens, women's up high single-digits, kids up high single-digits [35] - Global Football: men's grew low single-digits, kids grew high teens [35] - Basketball: women's grew strong double-digits, kids grew low teens [35] - Running: men's was flat, women's up low to mid-single digits [36] - Classic footwear franchises decelerated faster than the overall business, with a greater rate of decline in Q2 compared to Q1 [36] Market Performance - North America: Q2 revenue down 8%, NIKE Direct declined 15%, wholesale declined 1%, EBIT declined 10% [37] - EMEA: Q2 revenue declined 10%, NIKE Direct declined 20%, wholesale declined 4%, EBIT declined 10% [39] - Greater China: Q2 revenue declined 11%, NIKE Direct declined 7%, wholesale down 15%, EBIT declined 27% [40] - APLA: Q2 revenue down 2%, NIKE Direct declined 4%, wholesale declined 1%, EBIT declined 12% [41] Strategic Direction and Industry Competition - The company is shifting focus back to sport, leveraging athlete insights to accelerate innovation, design, and product creation [13] - Investments will be rebalanced to empower local teams and create stronger consumer connections in key countries and cities [14] - The company plans to elevate NIKE Direct as a premium destination, focusing on full-price sales and reducing promotional activity [25] - The company is committed to rebuilding trust with key wholesale partners by delivering innovative products and supporting their businesses [26] Management Commentary on Operating Environment and Future Outlook - The company is taking a long-term view, making decisions that prioritize the health of the brand and business, even if they negatively impact near-term results [29] - The company expects Q3 revenues to be down low double-digits, with gross margins down 300-350 basis points, reflecting actions to clean and reset the marketplace [46] - The company is accelerating actions to reposition the business, including reducing promotional activity, liquidating excess inventory, and increasing brand marketing [43][44] Other Important Information - The company is focusing on five key sports: running, basketball, training, football, and sportswear, with a segmented approach by men's, women's, and kids [61] - The company is investing in sports marketing, with recent long-term partnership extensions with the NFL, NBA, WNBA, and Brazil Football Confederation [62] Q&A Session Summary Question: How is the company planning to rebuild relationships with retail partners and regain shelf space? - The company is committed to leading a consumer-led marketplace, delivering innovative products, and supporting wholesale partners to drive mutually profitable growth [54][55] Question: What are the key investments being made to return the brand to growth? - The company is focusing on sport-led product innovation, increasing brand marketing, and empowering local teams in key countries and cities [60][61] Question: How will the company manage near-term financial pressures while making long-term investments? - The company is prioritizing margin health over sales growth in the near term, with actions to clean up inventory and reposition the marketplace expected to create short-term headwinds [71][76] Question: What is the timeline for returning to sustainable, profitable growth? - The company expects to see the impact of its actions over the next 18-24 months, with a focus on returning to a healthy, full-price marketplace and driving long-term growth [80][84] Question: What are the specific actions being taken in North America and Greater China? - In North America, the company is resetting NIKE Direct, investing in running specialty, and leveraging key sports moments to drive growth [96] - In Greater China, the company is focusing on product innovation, local product creation, and resetting the marketplace to drive long-term growth [98]