Economic Indicators - US MBA mortgage applications fell by -12.7% in the week ended September 26, with the purchase mortgage sub-index down -1.0% and the refinancing sub-index down -20.6% [1] - The September ISM manufacturing index rose +0.4 to a 7-month high of 49.1, exceeding expectations of 49.0 [6] - The September ADP employment change unexpectedly fell by -32,000, marking the largest decline in 2.5 years, while August was revised lower to -3,000 from +54,000 [5] Market Reactions - Stocks initially moved lower due to the US government shutdown, but later recovered, with the S&P 500 and Nasdaq 100 reaching new all-time highs [2][4] - The dollar index fell to a one-week low, while gold prices climbed to a record high amid risk-off sentiment [2] - Rising corporate earnings expectations are a bullish backdrop for stocks, with over 22% of S&P 500 companies providing guidance for Q3 earnings that are expected to beat analysts' expectations [8] Sector Performance - Pharmaceutical stocks rallied, with AstraZeneca closing up more than +9% and Eli Lilly up more than +8%, driven by hopes from Pfizer's deal with the US government [15] - Chipmakers and AI-infrastructure stocks also saw gains, with Super Micro Computer closing up more than +9% and Micron Technology up more than +8% [16] - Grocery retailers declined after Amazon announced a new private-label food brand, leading to Dollar Tree and Dollar General closing down more than -4% and -3% respectively [22] Upcoming Economic Data - Weekly initial unemployment claims are expected to increase by +7,000 to 225,000, and August factory orders are expected to rise by +1.4% month-over-month [9] - September nonfarm payrolls are anticipated to increase by +51,000, with the unemployment rate expected to remain unchanged at 4.3% [9]

Core Insights - Nike's stock experienced a significant increase of over 6% following the release of its quarterly results, outperforming the S&P 500 index which rose by 0.3% [1] Financial Performance - For the fiscal first quarter of 2026, Nike reported revenue of $11.7 billion, reflecting a year-over-year increase of 1%. Wholesale revenue rose by 7% to $6.8 billion, while Nike Direct revenue decreased by 4% to $4.5 billion [2] - GAAP net income fell by 31% year-over-year to $727 million, equating to $0.49 per share. This performance exceeded analysts' expectations, who had forecasted revenue just under $11 billion and a per-share net income of $0.22 [3][6] Strategic Outlook - CEO Elliott Hill noted progress in Nike's turnaround program, particularly in North America, wholesale, and running sectors. However, he acknowledged the need for further work to align all sports, geographies, and channels amid a dynamic operating environment [4] - CFO Matt Friend provided guidance indicating that the wholesale business is expected to return to "modest" growth for the fiscal year, while Nike Direct is not anticipated to see revenue increases [4]

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Let's bring in the top ranked retail analyst on Wall Street, Matthew Boss of JP Morgan. He just raised his price target in fact on that name. It's good to see you. >> Good to see you, too.>> You were a believer before many, right. Cuz the last time you were here, you had just upgraded the stock to a buy. >> That's right.>> Maybe 10% lower than where the stock is now. What gave you the conviction to do it then. And do you feel like you're getting the payoff now.>> Yeah. So look the the conviction in the call ...

Core Viewpoint - The retail analyst Matthew Boss of JP Morgan has raised the price target for Nike, indicating a positive outlook based on recent performance and strategic changes within the company [1][3]. Company Performance - After 2.5 years, the analyst believes Nike's financial metrics have bottomed out, with improvements in the income statement and gross margin [2]. - Nike's recent shift to a more offensive strategy is attributed to new leadership and proactive inventory management, which is expected to drive future growth [2][7]. - The company has achieved a significant recovery in gross margins, beating street expectations by 100 basis points, largely due to effective inventory cleanup [8]. Market Dynamics - Nike is facing increased competition from brands like Hoka, but the company is adapting by enhancing its merchandising strategies and engaging more closely with partners [3][4]. - The analyst notes that Nike's stock is currently trading at a valuation significantly lower than historical levels, suggesting potential for upside as the company recovers [6]. Consumer Behavior - Recent data indicates that consumer spending remains resilient, with a two-year stack showing a 400 basis point increase compared to the trailing 12 months [10][11]. - The upcoming holiday season is expected to provide additional catalysts for consumer spending, particularly for higher and middle-income consumers [12]. Investment Opportunities - The analyst identifies Nike as a turnaround opportunity alongside other brands like Ralph Lauren and Tapestry, suggesting that Nike's strategic changes position it well for future growth [13].

Group 1 - Nike Inc. shares increased over 3% in intra-day trading following the release of quarterly earnings that surpassed Wall Street expectations, driven by stronger wholesale sales [1] - The company reported first-quarter earnings of $0.49 per share, significantly higher than analyst estimates of $0.27 [1] - Revenue for the quarter rose 1% year-over-year to $11.7 billion, aligning closely with market forecasts [1] Group 2 - Wholesale revenue grew by 7% to $6.8 billion as retailers replenished inventory in anticipation of major sports launches [2] - Nike Direct sales, encompassing retail stores and digital channels, declined by 4% due to weaker online demand [2] - Sales from the core Nike brand increased by 2%, primarily driven by North America, while Greater China experienced a decline [2] Group 3 - Converse revenue fell by 27% [2] - Gross margin decreased by 320 basis points to 42.2% as a result of higher tariffs and discounting [2] - Net income dropped by 31% to $700 million [2]

Core Insights - Nike's "Win Now" turnaround plan has shown early success, particularly in North America, with positive consumer response and increased trust from retail partners [1][2][3] - The formation of "Sport Offense," aligning Nike, Jordan, and Converse into focused teams, is seen as a competitive advantage that enhances innovation and community connection [3][4] North America Performance - North America is leading the turnaround, with the spring order book showing year-over-year growth, indicating improved retailer confidence [3] - The redesign of retail experiences, such as the House of Innovation in New York and the South Congress store in Austin, has resulted in double-digit revenue increases [4] Running Business - The running segment has been a strong performer, with quick adaptations based on athlete feedback leading to redesigned products like the Vomero, Structure, and Pegasus [5] - Insights gained from the running business are expected to be applied to other sports categories [5] Challenges in China - Nike's business in China declined by 10% in the quarter, attributed to a challenging promotional environment and structural market issues [7] - The company plans to invest more in China, with over 5,000 mono-brand stores, indicating a long-term commitment despite current challenges [7] Apparel Concerns - There are concerns regarding the performance of Nike's sportswear business, particularly apparel, which has not been performing well [8] - The upcoming collaboration with Kim Kardashian's Skims brand is seen as a potential strategy to re-engage female consumers [8][9] Financial Outlook - Analysts have noted that second-quarter revenue guidance is down, suggesting ongoing challenges [10] - Despite headwinds, there is cautious optimism about Nike's prospects, with expectations for improved sales trends in North America as new products are launched [12][13] Strategic Shifts - Nike is shifting its focus from a gender-based strategy to a sport-focused approach, which is expected to enhance brand messaging and product development [13] - The company anticipates increased shipments of core footwear to offset weaknesses in the Dunk franchise [14] Market Position - Analysts see potential for stabilization in the core Nike brand and a positive turn in wholesale, although retail remains under pressure [15]

Core Insights - Nike shares experienced an increase after surpassing earnings expectations, driven by strong growth in North America and a 20 percent rise in running products [1] Group 1: Earnings Performance - Nike reported earnings that exceeded market expectations, indicating robust financial health [1] - The company saw significant growth in North America, contributing positively to overall performance [1] Group 2: Product Performance - Running products experienced a notable growth of 20 percent, highlighting a strong demand in this category [1] Group 3: Challenges Ahead - Despite the positive earnings report, challenges persist, including weak sales in China [1] - The company faces hurdles such as tariffs and a cooling demand for classic sneakers, which could impact future performance [1]

Nike’s Comeback Is Taking Shape as Sports Focus Pays Off. Listen for more on Bloomberg Intelligence. https://t.co/P3bmxo2aTw ...

Core Insights - Nike reported better-than-expected first-quarter results, indicating progress in its "Win Now" turnaround campaign, with a 5% year-over-year increase in wholesale revenue and a 20% rise in running gear sales [2][3] - The company is facing challenges from rising tariff expenses, now expected to reach $1.5 billion annually, up from a previous estimate of $1 billion [5] - Nike's shares have seen a positive response from investors, rising approximately 5% and nearing an average analyst target of $83 [3] Financial Performance - The "Win Now" campaign is showing positive results, with significant increases in both wholesale revenue and running gear sales [2] - Robust spring wholesale orders and a strong response to collaborations, such as with Kim Kardashian, are contributing to the company's momentum [3] Tariff and Production Challenges - Nike's annual tariff expenses are projected to increase significantly due to evolving trade policies, impacting overall costs [5] - The company is reducing production in China, where tariffs are currently at 54%, and is working with partners to manage costs while also increasing prices [6] Market Position - Approximately 51% of Nike's footwear was produced in Vietnam, 28% in Indonesia, and 17% in China last fiscal year, highlighting the company's reliance on Asian manufacturing [6] - Despite the challenges, Nike's shares are regaining favor with investors after a difficult period [4][7]