NIKE(US:NKE) GOLDEN SUN SECURITIES·2025-06-29 10:35Investment Rating - The report maintains a "Buy" rating for several key companies in the textile and apparel sector, including Anta Sports, Xtep International, and Bosideng [4][12][33]. Core Insights - Nike's FY2025Q4 revenue decreased by 12% year-on-year, with net profit dropping by 86% due to increased discounts and marketing expenses [1][16]. - The company is focusing on inventory reduction, expecting to normalize inventory levels by the end of FY2026H1 [2][21]. - The report emphasizes the resilience of the sportswear sector, predicting a recovery in performance and valuation in 2025, driven by outdoor and running demand [7][29]. Summary by Sections Nike's Performance - Nike's FY2025Q4 revenue was $11.1 billion, with a 12% year-on-year decline; direct sales fell by 14% and wholesale by 9% [1][16]. - The gross margin decreased by 4.4 percentage points to 40.3%, while SG&A expenses rose by 5 percentage points to 37.4% [1][16]. - For FY2025, Nike's total revenue was $46.3 billion, down 9% year-on-year, and net profit fell 44% to $3.2 billion [1][16]. Inventory Management - As of May 2025, Nike's inventory remained high at $7.5 billion, but the company is implementing various strategies to reduce it [2][21]. - The report notes that all major regions are actively working on inventory reduction, with strong sales in running and training categories [3][24]. Regional Performance - North America: FY2025Q4 revenue decreased by 11%, with significant progress in inventory reduction despite challenges from new supply and tariffs [28]. - EMEA: Revenue fell by 10%, but inventory levels remained stable, with running and training categories showing growth [28]. - Greater China: Revenue dropped by 20%, with a focus on deep inventory clearance through discounts [28]. - APLA: Revenue decreased by 3%, with a shift towards full-price sales in e-commerce [28]. Investment Recommendations - The report recommends focusing on companies with strong fundamentals and quality brands, anticipating performance recovery and valuation increases in 2025 [7][29]. - Key companies highlighted include Anta Sports, Xtep International, and Bosideng, with respective PE ratios for 2025 of 18x, 11x, and 12x [12][33].