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]

Nike, Inc. (NYSE:NKE) will release earnings results for the first quarter, after the closing bell on Tuesday, Sept. 30.Analysts expect the company to report quarterly earnings at 27 cents per share, down from 70 cents per share in the year-ago period. Lamb Weston projects to report quarterly revenue at $11.00 billion, compared to $11.59 billion a year earlier, according to data from Benzinga Pro.The company has beaten analyst estimates for earnings per share in eight straight quarters and in nine of the las ...

Core Viewpoint - Nike, Inc. is expected to report a significant decline in quarterly earnings and revenue compared to the previous year, with analysts projecting earnings of 27 cents per share and revenue of $11.00 billion [1]. Earnings Expectations - Analysts anticipate Nike's earnings per share to drop to 27 cents from 70 cents in the same quarter last year [1]. - The projected quarterly revenue is $11.00 billion, down from $11.59 billion a year earlier [1]. Historical Performance - Nike has consistently exceeded analyst estimates for earnings per share in eight consecutive quarters and in nine of the last ten quarters overall [2]. Stock Performance - Nike's shares increased by 0.4%, closing at $69.55 on Monday [3]. Analyst Ratings and Price Targets - Morgan Stanley maintained an Equal-Weight rating and raised the price target from $64 to $70 [8]. - UBS kept a Neutral rating and increased the price target from $63 to $71 [8]. - Barclays maintained an Equal-Weight rating with a price target increase from $64 to $65 [8]. - Citigroup held a Neutral rating and raised the price target from $68 to $74 [8]. - TD Cowen upgraded the stock from Hold to Buy and raised the price target from $62 to $85 [8].

Core Viewpoint - NIKE, Inc. is facing challenges reflected in declining price targets and anticipated decreases in earnings and revenue, but there is optimism from analysts regarding its strategic initiatives and potential upside in stock price [2][3][4][6] Company Overview - NIKE is a leading global brand in athletic footwear, apparel, and equipment, competing with major brands like Adidas and Under Armour [1] Price Target Trends - The consensus price target for NIKE has decreased from $85.20 last quarter to $77.75, influenced by market conditions and company performance [2][6] - The stock is currently trading at $68, marking a 12.85% decrease from its peak in August [2] Earnings Forecast - Analysts expect NIKE to report earnings of 26 cents per share on revenue of $10.99 billion, a significant decline from the previous year's earnings of 70 cents per share and revenue of $11.61 billion [3][6] Analyst Optimism - Despite challenges, analyst Tom Nikic from Wedbush has set a price target of $139 for NIKE, indicating potential upside based on strategic initiatives [4][6] Strategic Initiatives - NIKE's "Win Now" strategy aims to optimize inventory levels and enhance branding efforts, which is expected to improve sales and create a more favorable revenue mix [4] Market Conditions - NIKE's stock performance is influenced by broader market conditions, including supply chain disruptions and changing consumer behavior [5] - Key areas to monitor include sales performance in China, effective inventory management, and the impact of U.S. tariff policy on profit margins [5]

Market Performance - Market indexes experienced gains, with the Dow up +68 points, S&P 500 gaining +17 points, and Nasdaq increasing +107 points, while the Russell 2000 rose +2 points [2] - The market was influenced by a government shutdown threat and OPEC+'s decision to raise oil production by 137K barrels per day, leading to a -3.8% drop in WTI prices and a -2.5% decline in Exxon Mobil and BP stocks [1] Housing Market - Pending Home Sales rose by +4.0% in August, surpassing expectations and reversing a previous downward trend, aided by slightly easing mortgage rates [3] - Newly-built homes also saw an increase, with homebuilder stocks like Lennar, Pulte Home, and KB Home rising more than +1% due to pent-up demand [4] Cannabis Industry - The Trump administration is considering reclassifying cannabis from Schedule I to Schedule III, which could have significant implications for the industry, resulting in a +60% increase in Tilray's stock price [5] Economic Data Expectations - Upcoming economic data includes Case-Shiller Home Prices, Chicago Business Barometer, and Consumer Confidence, with expectations for slight increases and a narrowing in Consumer Confidence to 95.8 [6] - The Job Openings and Labor Turnover Survey (JOLTS) is expected to show a decrease in job openings to 7.1 million, the lowest since September 2024 [7] Company Earnings - Nike is set to report fiscal Q1 earnings, with expectations of a -60% year-over-year earnings decline and -4.95% revenue drop, despite having outperformed earnings expectations for eight consecutive quarters [8][9]

Options Market Activity - Nike's implied move is slightly less than the eight-quarter average of more than 10% [1] - Today's trading volume is more than double its average daily options volumes [1] - Call options outpaced put options by more than 2 to 1 [1] Specific Trade Analysis - A 1x3 call spread involved buying 4,000 October 75 calls and selling 12,000 of the 875% calls [2] - The net premium outlay for the call spread was approximately $250,000 [2] - The trade represents a bet that the stock could rally, but not higher than 875% [2] - The trader will be long 400,000 shares of stock above 75 if the stock reaches that price [2]

Summary of Key Points Core Viewpoint - Nike is experiencing significant trading activity, with an implied move of slightly larger than 8% expected by the end of the week, which is below the eight-quarter average of over 10% [1] Trading Activity - The trading volume for Nike has more than doubled its average daily options volumes, with calls outpacing puts by more than a ratio of 2 to 1 [1] - A notable trade involved a 1x3 call spread where 4,000 October 75 calls were purchased at approximately $132 per contract, while 12,000 of the 87.5% calls were sold against it, resulting in a net premium outlay of about $250,000 [2] - This strategy indicates a bullish outlook, as the trader will be long 400,000 shares of stock if it exceeds $75, but capped at a maximum of $87.5 [2]

Now, let's stick with Nike, which will be happy to turn the calendar on September. It's the worst performing Dow component for this month. Joining me now is David Schwarz, Morning Star senior equity analyst.He calls Nike very undervalued. Uh, how long before we see the proof that it's undervalued, David. Yeah, it could be a couple quarters.Nike has really been struggling for the last two years really, and uh, its sales numbers have been weak. uh the company's been reporting sales declines which is very unus ...

Core Viewpoint - Nike is currently undervalued and is expected to show improvement in sales and performance by 2026, despite recent struggles and sales declines [1][2]. Company Performance - Nike has faced sales declines over the past two years, which is atypical for a company known for high growth [2]. - The company has launched new products, including a new line of running shoes and a collaboration with Skims, aiming to strengthen its position in the athleisure market [3]. Market Position - Despite losing some distribution to competitors like Hoka and On, Nike remains the largest player in the industry and is still the leader in sales among retailers [6][7]. - Retailers such as Foot Locker and Dick's Sporting Goods have a positive outlook on Nike's recent product releases, indicating strong retailer support [7]. Future Outlook - While immediate sales growth may not be evident, the company is positioning itself for a stronger performance in 2026, with significant marketing opportunities such as the upcoming World Cup [8]. - The sportswear industry is growing globally, with increasing interest in sportswear in developing nations, providing ample market opportunities for Nike and its competitors [9].

Core Insights - Analysts are anticipating confirmation from management regarding the authenticity of any emerging positive signals and potential rebounds in performance [1] Group 1 - Positive signals are starting to emerge, prompting analysts to seek validation from management [1]