As Nike, Inc. ( NKE ) fell more than 10% during after-hours and the day following its Fiscal Q2 report , wiping out $10 billion in market value, I could not help butExcellent academic Finance background and Finance professional with over five years of cumulative experience in Consulting & Audit Firms including a professional Valuation position, FP&A and Controlling positions, and Financial writing.My approach is mostly value-oriented. However, valuation is rarely an appropriate short- to mid-term timing ind ...

Core Insights - The last three years have seen a significant decline in Nike's performance, with shares dropping approximately 34% and notable decreases in sales, margins, and profits [2][3] - Strategic missteps, including weak product innovation and challenges with the direct-to-consumer strategy, have contributed to Nike's struggles [3][7] - Despite these challenges, analysts forecast potential upside for Nike shares, indicating a path to recovery [4][7] Financial Performance - Nike reported revenue of $12.4 billion in its latest quarter, reflecting a growth rate of 1%, which exceeded Wall Street expectations of just under $12.2 billion [4] - The diluted earnings per share (EPS) was 53 cents, a decline of 32% year-over-year, but better than the forecasted 38 cents [5] - The company anticipates a low single-digit revenue decline in the next quarter and expects gross margin to fall by 200 basis points due to tariff pressures [5] Operational Metrics - Gross margin decreased by 300 basis points to 40.6%, primarily due to tariff-related challenges, with expectations of continued impact [6] - North American sales grew by 9%, while other regions experienced negative currency-adjusted growth, with Greater China sales falling by 16% [8] - The direct-to-consumer strategy faces challenges, particularly in China, while wholesale and running product lines are performing well [7]

IS ON PACE FOR ITS FOURTH STRAIGHT ANNUAL DECLINE. BUT OUR NEXT GUEST IS BULLISH AND SAYING JUST BUY IT. NIKE IS ACTUALLY AMONG HIS BEST IDEAS FOR 2026.JOINING US NOW IS SIMEON SIEGEL, CONSUMER EQUITY RESEARCH ANALYST AT GUGGENHEIM SECURITIES. GREAT TO SEE YOU. GOOD TO SEE YOU GUYS. >> GOOD TO BE BACK.>> THE MARKET IS NOT REALLY TRUSTING THE TURNAROUND STORY HERE. WHAT IS THE MARKET REACTING TO IN THE MOMENT. AND I GUESS IN YOUR MIND WHAT IS IT MISSING.>> YEAH. SO IT'S AN INTERESTING OPPORTUNITY TO COME BAC ...

Core Viewpoint - The market is skeptical about Nike's turnaround story, particularly due to challenges in China, which is a significant market for the company, while North America shows positive revenue growth [2][6]. Group 1: North America Performance - North America experienced a 9% revenue growth, attributed to Nike's strategy of flooding the market with classic products like Jordans and Air Force Ones, which has led to sustained growth for two consecutive quarters [3][4]. - The company is facing competition similar to past challenges with Adidas, where initial market saturation leads to dilution of brand value [4]. Group 2: China Market Challenges - China has historically been a crucial and profitable market for Nike, but current conditions are unfavorable, impacting overall market confidence [6][8]. - The company needs to strategize on how to reset its base in China and rebuild effectively [7]. Group 3: Competitive Positioning - Nike's significant marketing budget and brand history provide a competitive edge, making it difficult for rivals to consistently outperform [8][9]. - The company must leverage its strengths to maintain market leadership, especially when facing emerging competitors [8]. Group 4: Investor Expectations - Current earnings projections suggest a forward basis of around 230 to 240 million, reflecting a need for cautious optimism regarding future stock performance [10][12]. - The stock has been stagnant or declining, raising concerns about the company's ability to provide material earnings upside [12][13].

Core Insights - Nike's stock has declined approximately 20% since the announcement of Elliott Hill's return as CEO in September 2024, with uncertainty surrounding when the decline will cease [1] - Despite analysts resonating with Nike's message of a turnaround, a 10% drop in stock prices indicates investor skepticism about a near-term recovery [2] Financial Performance - Nike reported a 1% year-over-year revenue increase to $12.4 billion, but profit fell 32% to $792 million, facing challenges such as slow sales in China and $1.5 billion in annual tariff costs [4] - North America saw a 9% revenue increase year-over-year, with a 24% growth in sales to wholesalers, although there was a 10% decrease in consumer spending at Nike's website and stores [5] Strategic Direction - The company is focusing on improving "brand equity" and driving full-price sales while reducing promotions, amidst a climate of price sensitivity among consumers [3] - Analysts view the recent quarter's results as a successful execution of Nike's strategy, despite investor concerns, with potential profit margin growth hindered by tariffs [6] Market Reaction - Nike shares are currently below the prices prior to Elliott Hill's tenure as CEO, indicating that investors are seeking more evidence of a successful turnaround before expressing confidence [7]

Core Viewpoint - The U.S. stock market experienced a rise, driven by Oracle's stock surge following TikTok's agreement to sell its U.S. operations to a joint venture involving Oracle and Silver Lake Partners [1][3][6]. Group 1: Market Performance - The Dow Jones Industrial Average rose by 292.73 points, or 0.61%, closing at 48,244.58 points [3][8]. - The Nasdaq Composite increased by 278.62 points, or 1.21%, ending at 23,284.98 points [3][8]. - The S&P 500 index gained 62.50 points, or 0.92%, finishing at 6,837.26 points [3][8]. Group 2: Company Developments - Oracle's stock saw a significant increase after TikTok's parent company, ByteDance, signed a binding agreement to form a joint venture named "TikTok USDS Joint Venture LLC" with Oracle, Silver Lake, and MGX [3][8]. - Prior to this surge, Oracle faced pressure on its stock due to concerns over its debt levels and AI spending, which affected other AI-related stocks like Broadcom and AMD [3][8]. - Nvidia's stock rose over 3%, amid reports that the Trump administration is reviewing the company's potential sales of advanced AI chips to China [3][8]. Group 3: Other Company Insights - Micron Technology's stock continued its upward trend, rising over 7% after a 10% increase the previous day, driven by strong revenue guidance for the current quarter [4][9]. - Nike's stock was among the biggest decliners, falling approximately 11% due to a revenue decline in the Greater China region and pressure from increased tariffs affecting its gross margins [5][10]. Group 4: Market Dynamics - The market may experience volatility due to the expiration of options for four types of securities, known as "quadruple witching," with over $7.1 trillion in notional value set to expire, marking the largest single-day options expiration in history [4][9].

Cheng Xin/Getty Images Nike says its business is midway through a turnaround. Key Takeaways Nike shares, which are down 10% today, are stuck below the prices that predated Elliott Hill's days as CEO. Investors initially welcomed the news that Hill would return to Nike. Today's drop indicates that they're looking for more before declaring the turnaround a success. Nike hoped a new CEO could get its stock rising again. So far, the change just hasn't done it. Shares of Nike (NKE) have fallen some 20% ...

Well, joining us a CNBC contributor and KKM financial founder Jeff Kilberg. Jeff, it's great to have you here, but before I even get in, we're going to start with Nike, but what does it tell you that we're seeing kind of these huge moves across the landscape. Um, I don't know.It feels almost like a more uncertain environment and yet consumer discretionary is outperforming. Maybe the economy is hanging in pretty well, unless you're Nike, as you can see on the screen there. But what do you make of it all.>> W ...

Nike - Nike is experiencing significant challenges, with a notable decline in stock performance, down 57% over the past five years, and a continuous downturn for four consecutive years [10][9]. - The company reported earnings that beat expectations on both the top and bottom lines, but faced headwinds in China and lowered third-quarter guidance, anticipating a drop in revenues and gross margin contraction due to tariffs [4][10]. - There is skepticism regarding Nike's ability to leverage its brand effectively, as it is not selling shoes associated with its major stars, which is seen as a critical issue for the company [6][5]. - The narrative around tariffs is questioned, as other companies have not reported similar impacts, leading to doubts about Nike's claims [7][8]. FedEx - FedEx reported stronger-than-expected results and raised the low end of its full-year guidance, although its second-half operating profit is still expected to miss consensus by about 5% [11]. - The core parcel business showed a year-over-year increase of 24%, indicating positive momentum, despite some concerns regarding freight operations and potential spin-offs [13][12]. - FedEx is viewed as a solid investment opportunity, with expectations that its stock could retest previous highs around $315, making it a recommended hold for investors [14].

Core Viewpoint - Nike Inc. is facing challenges in profitability and market performance, particularly due to underperformance in the Chinese market and a decline in digital revenues, despite exceeding earnings expectations for the second quarter of fiscal year 2026 [2][3][6] Financial Performance - Nike's second-quarter earnings for fiscal year 2026 exceeded analysts' expectations, but the earnings per share (EPS) have declined, indicating potential profitability issues [2][6] - The company experienced a 14% drop in digital revenues, which is contributing to challenges in maintaining profit margins [2][6] Market Conditions - The Chinese market, a significant revenue source for Nike, is currently underperforming, which is impacting the company's profit margins and leading to a decline in gross margins for two consecutive quarters [3][6] - Analysts have revised forecasts for Nike due to concerns over future profitability stemming from the challenges in the Chinese market [3] Stock Performance - Despite a positive earnings report, Nike's stock price dropped over 10% in premarket trading, attributed to challenges in the Chinese market and rising costs [4][6] - Nike's current stock price is $65.63, reflecting a slight decrease of 0.09% or $0.06, with a market capitalization of approximately $97 billion [5]