Group 1 - BofA Securities analyst Lorraine Hutchinson maintains a Buy rating on Nike Inc with a price target of $90.00, highlighting management's proactive measures to adjust the market and clear old inventory for new product launches [1] - The analyst projects third-quarter EPS of $0.22, indicating that the results will be less significant than the overall message regarding the product reset cycle and the traction of new products [2] - Management may delay offering an F26 outlook due to uncertainty surrounding the product reset and consumer spending trends [3] Group 2 - The analyst anticipates that management might provide insights into margin recovery for F26, but detailed earnings guidance is unlikely [4] - Margin risks are expected in the third quarter as management focuses on reducing lifestyle inventory through wholesale buybacks and markdowns [5] - Actions such as buying back products from retail partners will increase inventory on the balance sheet, but short-term margin pressure is seen as beneficial for stock outlook, indicating progress in clearing the way for new products [6] Group 3 - The earnings call may not reveal major product updates, but early successes in products like Vomero 18 or Pegasus Premium will be closely monitored as key catalysts to re-engage investors [7] - NKE shares closed lower by 0.53% at $73.31 on Tuesday, reflecting market sentiment [7]

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Core Viewpoint - Nike (NKE) is expected to report a significant decline in quarterly earnings and revenues, with earnings per share forecasted at $0.28, a 71.4% decrease year-over-year, and revenues projected at $11.12 billion, reflecting a 10.6% decline [1]. Earnings Estimates - Over the past 30 days, the consensus EPS estimate has been revised upward by 3.4%, indicating analysts' reassessment of their initial forecasts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Projections - Analysts estimate 'Revenue- Converse' at $457.15 million, down 7.7% from the previous year [5]. - 'Revenue- Global Brand Divisions' is projected at $9.79 million, up 8.8% year-over-year [5]. - 'Revenue- Equipment' is expected to reach $492.96 million, reflecting a 1.2% increase year-over-year [5]. Geographic Revenue Insights - 'Revenue- Footwear' is anticipated to be $7.07 billion, down 13.4% year-over-year [6]. - 'Geographic Revenue- North America' is projected at $4.45 billion, a decrease of 12.3% from the prior year [6]. - 'Geographic Revenue- Asia Pacific & Latin America' is expected to be $1.54 billion, down 6.5% year-over-year [6]. - 'Geographic Revenue- Europe, Middle East and Africa' is forecasted at $2.80 billion, reflecting a 10.9% decline [7]. - 'Geographic Revenue- Greater China' is estimated at $1.81 billion, down 13.2% year-over-year [7]. - The total 'Geographic Revenue- Nike Brand' is projected at $10.61 billion, indicating an 11.2% decrease from the previous year [8]. Performance Comparison - Nike shares have returned -1.9% over the past month, outperforming the Zacks S&P 500 composite, which declined by 7.7% [9].

Core Insights - The article discusses the journey to financial independence through disciplined living and strategic investing [2] - It emphasizes the importance of dividend growth investing and identifying undervalued high-quality stocks [2] Group 1: Financial Independence Journey - The individual transitioned from being financially unstable at age 27 to achieving financial freedom by age 33 [2] - The approach involved living below means and making intelligent investment decisions [2] Group 2: Investment Strategies - Focus on dividend growth investing as a primary strategy for generating income [2] - Highlighting the significance of high-yield situations and long-term investment opportunities [2]

Core Insights - Brian Gilmartin founded Trinity Asset Management in May 1995 to provide better service to individual investors and institutions overlooked by larger firms [1] - He has a background as a fixed-income/credit analyst and has worked at notable firms before establishing his own company [1] - Gilmartin holds a BSBA in Finance and an MBA in Finance, along with a CFA designation awarded in 1994 [1] Company Overview - Trinity Asset Management caters to individual investors and institutions, focusing on personalized service [1] - The firm was established to address the needs of clients who were not receiving adequate attention from larger financial institutions [1] Professional Background - Gilmartin began his career as a fixed-income/credit analyst at a Chicago broker-dealer and later worked at Stein Roe & Farnham [1] - He has experience managing equity and balanced accounts for clients [1] - Gilmartin has contributed to various financial publications, enhancing his visibility in the industry [1]

Company Performance - Nike's stock closed at $72.71, reflecting a -1.19% change from the previous day's closing price, which was less than the S&P 500's daily loss of 0.91% [1] - Over the past month, Nike's shares gained 1.83%, while the Consumer Discretionary sector and the S&P 500 lost 9.2% and 7.38%, respectively [1] Upcoming Earnings - Nike is set to announce its earnings on March 20, 2025, with projected earnings per share (EPS) of $0.28, indicating a 71.43% decrease from the same quarter last year [2] - The consensus estimate for revenue is $11.12 billion, down 10.57% from the prior-year quarter [2] Annual Forecast - For the entire year, the Zacks Consensus Estimates forecast earnings of $2.05 per share and revenue of $46.24 billion, reflecting changes of -48.1% and -9.98%, respectively, compared to the previous year [3] Analyst Estimates - Recent revisions to analyst estimates for Nike are important as they reflect near-term business trends, with positive revisions indicating analyst optimism about the company's business and profitability [3][4] Zacks Rank and Valuation - Nike currently holds a Zacks Rank of 3 (Hold), with a Forward P/E ratio of 35.84, which is a premium compared to the industry average Forward P/E of 11.12 [5] - The Zacks Consensus EPS estimate has shifted 0.3% upward over the past month [5] Industry Metrics - Nike's PEG ratio is currently 2.39, compared to the Shoes and Retail Apparel industry's average PEG ratio of 0.93 [6] - The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector and has a Zacks Industry Rank of 219, placing it in the bottom 13% of all industries [6][7]

Core Viewpoint - Nike (NKE) is anticipated to report a year-over-year decline in earnings due to lower revenues for the quarter ended February 2025, with the actual results having a significant impact on its near-term stock price [1][2]. Earnings Expectations - The consensus estimate for Nike's quarterly earnings is $0.28 per share, reflecting a year-over-year decrease of 71.4% [3]. - Expected revenues are projected to be $11.12 billion, down 10.6% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 2.45% higher in the last 30 days, indicating a reassessment by analysts [4]. - A positive Earnings ESP reading is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank of 1, 2, or 3 [8]. Earnings Surprise Prediction - The Most Accurate Estimate for Nike is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -6.90%, suggesting a bearish outlook from analysts [10][11]. - Despite a Zacks Rank of 3, the combination of a negative Earnings ESP makes it challenging to predict an earnings beat [11]. Historical Performance - In the last reported quarter, Nike was expected to post earnings of $0.63 per share but actually delivered $0.78, resulting in a surprise of +23.81% [12]. - Over the past four quarters, Nike has consistently beaten consensus EPS estimates [13]. Conclusion - While an earnings beat or miss may influence stock movement, other factors can also play a significant role in stock performance [14]. - Nike does not currently appear to be a compelling earnings-beat candidate, and investors should consider additional factors before making investment decisions [16].

Group 1: Nike - Nike's share price has fallen 50% from its previous peak, prompting a leadership change with the appointment of Elliott Hill as CEO [3][5] - Bill Ackman's Pershing Square Capital Management has been accumulating Nike shares, holding over 18 million shares worth $1.4 billion by the end of Q4 [3][4] - Despite a trailing revenue of $49 billion, Nike has faced challenges with a 9% revenue decline and a 26% drop in net income in the most recent quarter [5][4] - The stock's P/E ratio is just under 24, which is lower than the S&P 500's 29 but still within Nike's historical range [6] - Over the past decade, Nike's revenue grew at a compound annual rate of 6%, while earnings per share grew 10% [7] - Analysts predict a 10% sales decline in fiscal 2025, with a potential recovery to 2% growth in fiscal 2026 [9] Group 2: Starbucks - Starbucks has faced challenges in a cautious consumer spending environment, but its stock has risen 18% since the announcement of Brian Niccol as the new CEO [10][11] - Two billionaire fund managers, Stephen Mandel and Andreas Halvorsen, have increased their stakes in Starbucks significantly [11][12] - Starbucks generated $3.5 billion in net income on $36 billion of revenue over the last year, with a global presence of over 40,000 stores [12] - The stock's P/E ratio is currently at 36, which appears expensive compared to a forward P/E of 31 based on next year's earnings estimates [13] - Starbucks has a 10-year average annualized sales growth of 8% and earnings growth of 9% [14] - Under Niccol's leadership, Starbucks is investing in improving service speed and technology, which may enhance customer satisfaction and sales [15]

Core Insights - NIKE, a globally recognized brand known for its slogan "Just Do It," has encountered various challenges recently [1]. Group 1 - The company is part of the iREIT+Hoya Capital investment group, indicating its relevance in investment discussions [1]. - The article emphasizes the importance of conducting personal due diligence before making investment decisions [1]. Group 2 - There is no indication of any current stock or derivative positions held by the analyst regarding the companies mentioned [2]. - The article reflects the author's personal opinions and is not influenced by any compensation from external sources [2]. Group 3 - Seeking Alpha clarifies that past performance does not guarantee future results, highlighting the speculative nature of investments [3]. - The platform does not provide specific investment recommendations, underscoring the need for individual assessment of investment suitability [3].

Core Viewpoint - NIKE Inc. has shown a significant recovery in its stock performance year-to-date, with shares rising 5.8%, outperforming the broader Shoes & Retail Apparel industry and the Consumer Discretionary sector [1][2]. Stock Performance - NIKE's stock has experienced a notable recovery after a significant decline in 2024, having lost 23% in the past year and 32.5% over the past two years [2]. - The current share price is $80.02, reflecting a 16.6% premium over its 52-week low of $68.62, but a 23% discount from its 52-week high of $103.94 [5]. Strategic Initiatives - CEO Elliott Hill's strategies are credited with revitalizing the brand and driving sustainable growth, including a shift to a full-price digital model and reduced reliance on promotions [7][8]. - NIKE is refining its production and distribution strategy to maintain exclusivity and demand, although this has led to a faster decline in classic footwear sales [9][10]. - A recent partnership with SKIMS aims to introduce a new range of women's athletic wear, merging performance technology with body-conscious design [11]. Financial Estimates - The Zacks Consensus Estimate for NIKE's fiscal 2025 EPS has increased slightly, while estimates for fiscal 2026 remain unchanged, indicating reduced analyst confidence [12]. - For fiscal 2025, sales and EPS are expected to decline by 9.8% and 47.9% year-over-year, respectively [13]. Market Positioning - NIKE is currently trading at a forward 12-month P/E multiple of 35.36X, higher than the industry average of 28.4X and the S&P 500's average of 21.64X [21]. - Despite trading below its five-year high, the current valuation may be considered expensive given the ongoing challenges [22]. Challenges and Outlook - NIKE faces sustained softness in its lifestyle segment and declining digital revenues, alongside challenges in Greater China affecting revenue growth [16][17]. - The company acknowledges higher-than-expected inventory levels and is actively reducing aged inventory to align supply with demand [18]. - NIKE projects a low-double-digit revenue decline for the third quarter of fiscal 2025, with expected gross margin contraction [19].