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Nike Earnings Loom: Can Shares Bounce?
NIKENIKE(US:NKE) ZACKSยท2025-09-30 16:15

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]