Core Viewpoint - NIKE (NKE) shares have underperformed in recent years due to muted growth and an inability to capture consumer preferences post-COVID, leading to weak sales and sentiment [1][2][12] Financial Performance - Recent quarterly sales amounted to $11.1 billion, reflecting a 12% year-over-year decline, with gross margin contracting to 40.3% from 44.7% in the same period last year [6][10] - Revenue revisions show a slight improvement, with the expected revenue of $11.0 billion revised 0.5% higher, although a 5% year-over-year decline is still anticipated [9][10] - The current Zacks Consensus EPS estimate stands at $0.60, indicating a 60% year-over-year decline [8] Market Sentiment - The stock has struggled due to ongoing headwinds, but positive commentary from the CEO suggests that conditions may improve, leading to a post-earnings rise despite soft results [6][8] - The stock trades at a forward 12-month earnings multiple of 35.1X, which is above the five-year median of 30.8X and reflects a 50% premium compared to the S&P 500 [11] Investment Outlook - The company is currently rated as a Zacks Rank 4 (Sell), indicating caution for potential investors until more positive guidance is provided [12]

Core Viewpoint - Nike is currently undergoing a turnaround under CEO Elliot Hill, with expectations of a challenging earnings report, including a projected sales decline of 5-6% and earnings of 28 cents per share [3][4]. Financial Performance - Analysts expect Nike to report earnings of 28 cents per share for the trailing quarter on revenue of $11.2 billion [1]. - The company experienced a 15% rally in shares three months ago following its fourth-quarter earnings report [1]. Market Position and Competition - Nike's shares are down 0.8% ahead of the earnings report, with competitors like Lululemon and Deca's Outdoor also experiencing declines [2]. - Nike is facing increased competition from local Chinese brands such as Anta and Li Ning, which have improved their product offerings and distribution [12][13]. Product Development and Strategy - Nike has launched several new product lines, including running shoes and a partnership with Skims in the athleisure market, aimed at regaining market share [6][7][8]. - The company is expected to leverage major marketing events like the 2026 Olympics and World Cup to boost its brand presence [9]. Challenges in China - Nike has struggled in the Chinese market due to high youth unemployment and competition from local brands, although it remains the market leader [10][12]. - Per capita spending on sportswear in China is significantly lower than in the US, indicating potential growth as more consumers enter the middle class [14]. Investment Outlook - Analysts view Nike as undervalued, with a fair value estimate of $14 per share [14].

Core Thesis - NIKE, Inc. is facing significant challenges in FY2025, including a 10% decline in annual revenue to $46.3 billion and a 44% drop in net income to $3.2 billion, marking its first revenue decline in years [2][3] Financial Performance - The footwear segment, NIKE's largest, experienced a 12% revenue drop due to excess inventory and product fatigue, while apparel and equipment segments showed more resilience, with apparel down 6% and equipment up 6% [2][3] - The company's trailing and forward P/E ratios are 32.97 and 41.67 respectively, with shares trading at $71.22 as of September 24th [1] Competitive Landscape - Competitors such as Adidas and Lululemon have gained market share, with niche brands like Hoka and On attracting consumer interest through innovation and community engagement [3] - Regional performance varied, with North America facing oversupply issues, Greater China declining 13% due to weaker demand, and EMEA revenue down 10% amid inflation and competition [4] Strategic Response - NIKE has initiated a "Win Now" turnaround strategy under new CEO Elliott Hill, focusing on leadership realignment, cost reductions, inventory normalization, and prioritizing core sports categories [5] - The company is recalibrating its channel mix to balance direct-to-consumer and wholesale approaches while addressing supply chain and tariff risks [5] Future Outlook - Early indicators suggest stabilization, including improved sell-through in North America and a cleaner inventory base, with a strong balance sheet and renewed strategic focus setting the stage for potential recovery in FY2025 [6] - The execution of the turnaround strategy will be crucial for NIKE to reclaim its leadership position in the competitive athletic apparel and footwear market [6]

[Music] We're back on Morning Movers with some breaking news. Shares of Core Weaver are rallying after announcing a deal for over 14 billion dollars with Meta Platforms. The company will supply computing power for Meta with the CEO telling Bloomberg, quote, "They loved our infrastructure in earlier contracts and came back for more." That stock rallying more than 8% in the pre-market.Keep in mind, it's already up more than 200% this year since its public debut. Time now for Options Corner. Joining me now to ...

Core Insights - Nike, Inc. is expected to report earnings of 27 cents per share for the first quarter, a decrease from 70 cents per share in the same period last year [1] - The company is projected to report quarterly revenue of $11.00 billion, down from $11.59 billion a year earlier [1] - Nike has exceeded analyst revenue estimates in three consecutive quarters and six out of the last ten quarters [2] Dividend Information - Nike currently offers an annual dividend yield of 2.31%, translating to a quarterly dividend of 40 cents per share, or $1.60 annually [2] - To achieve a monthly income of $500 from dividends, an investor would need to own approximately 3,750 shares, equating to a total investment of about $260,813 [4] - For a more conservative monthly income goal of $100, an investor would need 750 shares, requiring an investment of around $52,163 [4] Dividend Yield Dynamics - The dividend yield is calculated by dividing the annual dividend payment by the current stock price, which can fluctuate [5] - Changes in stock price directly affect the dividend yield; for instance, if the stock price rises, the yield decreases, and vice versa [5] - The dividend payment itself can also change, impacting the yield; an increase in dividend payment raises the yield if the stock price remains constant [6] Stock Performance - Nike's shares increased by 0.4%, closing at $69.55 on the previous Monday [6]

Market Overview - U.S. stock index futures are all down, with Dow futures down 0.14%, S&P 500 futures down 0.14%, and Nasdaq futures down 0.09% as of the report [1] - European indices show mixed results, with Germany's DAX down 0.05%, UK's FTSE 100 up 0.11%, France's CAC40 down 0.37%, and the Euro Stoxx 50 down 0.07% [1] Oil Market - WTI crude oil is down 0.88% at $62.89 per barrel, while Brent crude oil is down 0.83% at $66.53 per barrel [2] Economic Outlook - The potential U.S. government shutdown could lead to a "data fog" affecting economic outlook, with key economic data releases, including the non-farm payroll report, likely to be delayed [2] - The delay in economic data could impact critical policy decisions, such as whether the Federal Reserve should cut interest rates again in the upcoming meeting [2] Investor Sentiment - Despite the looming government shutdown, investor sentiment remains optimistic, focusing on strong U.S. economic performance and corporate earnings rather than the shutdown risk [3] - UBS suggests that investors should not be overly concerned about the shutdown but should focus on other market drivers like continued Fed rate cuts and strong corporate earnings [3] Federal Reserve Commentary - St. Louis Fed President James Bullard expresses an open attitude towards future rate cuts but emphasizes the need for caution due to current inflation rates being above the 2% target [4] - Bullard highlights the importance of resisting inflation rates slightly above the target, regardless of the causes [4] Copper Market - Several investment banks have raised their copper price forecasts due to expected supply shortages, with JPMorgan increasing its Q4 LME copper price forecast from $9,350 per ton to $11,000 per ton [5] - Bank of America has also raised its 2026 copper price forecast by 11% to $11,313 per ton, while Goldman Sachs has revised its annual supply-demand balance from a surplus to a shortage of 5.5 million tons [5] Company News - Boeing is planning to develop a new single-aisle aircraft to replace the 737 MAX, aiming to regain market share lost due to safety and quality issues [7] - Ford and General Motors have extended the $7,500 electric vehicle lease tax credit, allowing dealers to offer this incentive to customers [8] - CenterPoint Energy plans to invest $65 billion over the next decade to expand its electric grid capacity, anticipating a significant increase in electricity demand [9] - ExxonMobil is planning to cut approximately 2,000 jobs globally as part of its long-term restructuring plan, which represents about 3% to 4% of its total workforce [9]

All right, your price target on Nike 75 bucks. The consensus is about $80.50%. Why are you less bullish than the rest of the of your peers when you say that you actually believe the turnaround's in full swing and you're seeing signs of real progress.>> Yeah, you know, the the main case for us is that, you know, a lot has been priced in here. You know, we've seen um you know, shares pretty much trading at 40 times for you know, next 12-month earnings um and then 30 times, you know, two years from now earning ...

Core Viewpoint - The company is experiencing a turnaround, but the current valuation may limit upside potential, necessitating quicker improvements to see share price increases [2][4]. Valuation Concerns - Shares are trading at approximately 40 times next 12-month earnings and 30 times earnings for two years out, raising concerns about valuation [2]. - The risk is perceived to be on the downside unless there is a significant earnings beat and positive guidance [5]. Guidance Importance - Guidance is crucial, especially as it pertains to the upcoming holiday season, which is a key period for sales [3]. - Expectations for earnings next year are around $250 million, with potential upside if earnings exceed this significantly [5]. Market Share and Competition - The company is not currently gaining market share from competitors like Hoka or OnQ, but there are expectations for future gains [4]. - The company has a global business model, with only 44% of sales coming from North America, providing some insulation from tariff impacts [4].

Core Viewpoint - The collaboration between Nike and SKIMS aims to penetrate the women's sportswear market, potentially challenging Lululemon's dominance, but it may provide Lululemon with some breathing room due to NikeSKIMS' current focus on North America and elite sports rather than the Asian market [5][6][22]. Group 1: NikeSKIMS Launch - NikeSKIMS will launch its first collection on September 26, featuring 58 items across 7 series, with prices similar to Lululemon's popular products [5][6]. - The initial product design and release strategy appear conservative, focusing on North America, which may limit immediate market impact [19][20]. Group 2: Financial Performance - Nike's revenue for the fourth fiscal quarter decreased by 12% year-over-year to $11.1 billion, with a net profit drop of 86% to $211 million [10][12]. - In contrast, Adidas reported a 2.2% increase in net sales for the latest quarter, highlighting competitive pressures on Nike [10]. Group 3: Market Dynamics - Lululemon's revenue grew by 6.5% to $2.525 billion, but net profit declined by 5.6%, indicating challenges in the North American market [22]. - The Chinese market has been a stronghold for Lululemon, with a 25% revenue increase, providing a buffer against competition [22]. Group 4: SKIMS Growth and Strategy - SKIMS has rapidly expanded since its inception in 2019, with a valuation increase from $1.6 billion to $4 billion in 2023, indicating strong market demand [13]. - The brand's unique design philosophy and celebrity backing have allowed it to penetrate various segments, including men's wear and swimwear [12][13]. Group 5: Competitive Landscape - The collaboration between Nike and SKIMS is seen as an attempt to replicate the success of Adidas' Yeezy line, but challenges remain in achieving similar market penetration and brand integration [25][27]. - NikeSKIMS must establish its unique identity and market presence to differentiate itself from competitors like Lululemon and Alo [24][27].

Core Insights - Nike's new partnership with Skims is seen as a strategic move to revitalize its brand and product offerings, particularly in the women's athletic apparel market [1][6][7] Company Strategy - CEO Elliott Hill has shifted Nike's focus back to innovation in performance footwear and apparel after a previous overemphasis on lifestyle products [1][2] - The partnership with Skims aims to combine performance and style, launching a new women's brand called NikeSkims, which is expected to set a new standard in the fitness and activewear industry [3][4] Product Launch - The new collection features four styles: Matte, Shine, Airy, and Vintage Seamless, utilizing Nike's Dri-Fit technology, and offers over 10,000 different looks available online and in flagship stores [3][4] - The marketing campaign includes prominent Nike athletes, enhancing brand visibility and appeal [4][5] Market Position - This collaboration allows Nike to better compete in the women's athletic apparel market against brands like Lululemon and Fabletics, addressing a previously identified weakness [4][5] - The partnership is expected to leverage Kim Kardashian's brand influence and Nike's manufacturing capabilities to expand market reach [6][7] Financial Outlook - Nike is set to report fiscal first-quarter earnings on September 30, with analysts predicting a revenue decline of 5.2% to $11 billion and earnings per share dropping from $0.70 to $0.27 [8][9] - Despite recent challenges, Nike's stock has increased over 30% since April, indicating potential recovery as the company anticipates sales growth [8][10]