By Linda Pasquini and Helen Reid (Reuters) -Adidas' group sales dipped 5% in North America in the third quarter, weighed down by the end of the popular Yeezy sneaker line last year and a volatile global environment affected by U.S. tariffs. Global revenues, meanwhile, grew 3% to hit 6.63 billion euros ($7.73 billion) - a record, according to CEO Bjorn Gulden. Adidas has sought to put the Yeezy affair behind it since ending the highly profitable partnership with the brand's designer - the rapper Ye, form ...

Core Insights - Adidas's North America sales experienced the weakest growth compared to other regions in the third quarter [1] Company Performance - The report indicates that North America is lagging behind in sales growth among Adidas's global markets [1]

Core Viewpoint - The investment community has lost confidence in Nike, a global leader in sportswear, which has faced significant challenges in recent years [1][2] Financial Performance - Nike's revenue and net income for fiscal 2025 were down 10% and 44% respectively compared to the previous year, contributing to a decline in stock price [4] - In Q1 2026, Nike reported a slight revenue gain of 1%, but faced a 9% sales dip in China and pressure on gross margins due to discounting and tariffs [6][7] - The stock is currently trading 62% below its all-time high and has fallen 11% in 2025, indicating a lack of market confidence [2][13] Strategic Initiatives - Nike is focusing on rebalancing its distribution strategy, emphasizing wholesale accounts over its digital channel, and improving product innovation to enhance customer engagement [5] - The company is adopting a sport-centric approach by putting the "athlete back at the center" of its strategy [5] Market Outlook - Management anticipates low single-digit revenue declines in the current quarter, which includes the critical holiday shopping period [7] - Wall Street analysts project an 11% sales increase from fiscal 2025 to fiscal 2028, suggesting a potentially positive long-term outlook [7] Brand Positioning - Despite challenges, Nike maintains a strong brand presence and pricing power, supported by effective marketing and high-profile endorsements [10][11] - The company is viewed as operating from a position of strength, although it faces competition from younger rivals [10] Investment Considerations - Nike's current price-to-sales ratio of 2.2 is among the lowest in the past decade, indicating low market expectations but potential upside if fundamentals improve [14] - The company is considered a risky investment due to high uncertainty, and while it may not offer explosive growth, it could appeal to risk-tolerant investors [12][15]

Core Insights - NIKE Inc.'s collaboration with SKIMS aims to blend sport performance with pop-culture appeal, targeting a broader consumer base, particularly women who value both function and form in activewear [1][2][8] - The partnership's debut collection features 58 silhouettes that merge NIKE's performance expertise with SKIMS' aesthetic, indicating strong early consumer response [2][8] - This collaboration could serve as a catalyst for growth, expanding NIKE's reach into the premium athleisure market and enhancing its appeal among younger, style-conscious consumers [3] Competitive Landscape - NIKE faces strong competition from adidas AG and lululemon athletica inc. in the global market [4] - adidas is rebuilding momentum through its "Own the Game" strategy, focusing on direct-to-consumer growth and sustainability, while revitalizing classic products [5] - lululemon has evolved into a global performance and lifestyle brand, expanding its offerings and capturing consumers seeking both style and performance [6] Financial Performance - NIKE shares have lost 8.7% year to date, compared to the industry's decline of 11.4% [7] - The company trades at a forward price-to-earnings ratio of 34.92X, higher than the industry average of 29.37X [9] - The Zacks Consensus Estimate for NIKE's fiscal 2026 earnings implies a year-over-year decline of 23.6%, while fiscal 2027 indicates growth of 50.5% [10]

Nike's new design chief has been tasked with pulling the world’s largest sportswear company out of an innovation rut. Will new products like a brain-stimulating shoe and a temperature-controlled jacket do it? https://t.co/b0aphVorrC ...

Core Insights - Nike is attempting a comeback as it currently trades at less than half of its pandemic-era market valuation, having experienced its worst trading day last year, which resulted in a loss of $28 billion in value in a single session [1] Company Strategy - CEO Elliott Hill emphasizes a strategy focused on innovation, sport, and rebuilding consumer trust after years of slowing growth and increased competition [2] - Hill has reorganized the company to focus on individual sports rather than product categories, aiming to enhance competitiveness against emerging rivals like On Running and Hoka [3] Market Challenges - Analysts highlight that Nike's previous lack of product innovation and reduced presence in wholesale channels allowed competitors to gain market share, which was identified as a strategic mistake [4] - The company faces intense competition and is working to reclaim shelf space while also dealing with challenges such as excess inventory and $1.5 billion in tariff-related costs [5]

Core Viewpoint - Bill Ackman, a prominent investment manager, has made a significant investment in Nike, converting a $1.4 billion equity stake into deep in the money call options, anticipating that this strategy will yield double the returns compared to holding the stock directly [3][9]. Company Overview - Nike's revenue declined by 10% in the quarter ending August 2024, prompting a leadership change as the board replaced former CEO John Donahue with Elliott Hill, who initiated the "Win Now" strategy to revitalize the brand [5][4]. - The "Win Now" strategy focuses on enhancing brand marketing, accelerating product innovation, and improving wholesale relationships while restoring the direct-to-consumer model to premium status [5]. Recent Performance - Nike's revenue showed a slight increase of 1% year-over-year in the last quarter, although it was down 1% on an FX-neutral basis, with notable strength in the wholesale segment despite a decline in direct-to-consumer sales [6]. - The company is facing challenges in the sportswear market, with competitors like Under Armour and Lululemon also experiencing sales declines, and anticipates an additional $1.5 billion in expenses due to tariffs [7]. Future Outlook - Despite short-term challenges, Nike is expected to improve its inventory position and innovate new products, which should lead to a return to growth [8]. - Analysts predict a 41% improvement in earnings per share for fiscal 2027, with further growth expected in fiscal 2028, indicating a positive long-term outlook for the company [10]. Valuation - Nike's stock is currently trading at 27 times next year's earnings expectations and just 2 times trailing sales, suggesting it is undervalued with more upside potential than downside risk [11].

17 October 2025 | 5:27PM HKT Equity Research Xtep International Holdings (1368.HK) FY25 guidance reiterated; Xtep brand in-line while Saucony set for 4Q acceleration; Buy 1368.HK 12m Price Target: HK$6.80 Price: HK$6.01 Upside: 13.1% Xtep reported 3Q25 operating results with Xtep core at LSD% yoy (in-line) retail sales growth and Saucony at >20% yoy (slight miss). The company reiterated full year guidance of positive growth at Xtep brand, >30% for Saucony, and >10% NP growth. For Xtep core, we believe the L ...

Company Turnaround Strategy - Nike's new CEO, Elliot Hill, aims to revitalize the company by refocusing on sports and athletes [2][9][10] - The strategy involves reorganizing brands by sport (Nike Running, Nike Basketball, etc) with small, cross-functional teams [12] - A key component is leveraging the Sports Research Lab to develop innovative products based on athlete data [10] - Addressing excess inventory is a priority to make room for new products and inspire consumers [19][20] Challenges and Competition - Nike faces increased competition from brands like On Running and Hoka due to perceived lack of innovation and previous pullback from wholesale retailers [7][8] - The company experienced its worst trading day, wiping out $28 billion in market capitalization [1] - Nike is working to regain shelf space in the wholesale business [8] Financial Performance and Market Dynamics - Nike aims to return to mid-to-high single-digit revenue growth and teen margins [5] - In the first quarter of 2026, Nike's China sales fell more than 9% to $15 billion [25] - The company faces a $15 billion tariff bill but is working to offset it through various levers [23][24] China Market - Nike sees China's 14 billion consumers as a long-term opportunity, focusing on sports like running, fitness, and basketball [26] - Nike is reevaluating its monobrand store concepts in China (5000 stores), shifting from sportswear to a more sport-focused approach [27]

Core Insights - Elliott Hill has been working on revitalizing Nike since his return as CEO in October 2024, focusing on addressing declining sales and competition from smaller brands [1][2][4] - Hill's "win now" strategy aims to refocus Nike on sports categories, particularly running and basketball, moving away from a reliance on retro styles [2][8][17] Financial Performance - Nike's revenue fell 10% year-over-year to $11.6 billion in the quarter before Hill's appointment, with a total revenue of $46.3 billion for fiscal year 2025, down 9% [6][12] - Despite initial optimism, Nike's stock has decreased by about 19% since Hill's appointment, underperforming the S&P 500 and peers like Adidas [12][39] Strategic Initiatives - Hill's strategy includes improving relationships with wholesale partners, which had been strained due to a focus on direct-to-consumer sales [7][28] - Nike's wholesale revenues increased by 7% to $6.8 billion in the first quarter of fiscal year 2026, indicating a recovery in this area [30] - The company is also focusing on enhancing its digital and direct-to-consumer channels, although digital revenues fell 12% year-over-year last quarter [31][32] Market Positioning - Hill's turnaround plan emphasizes a return to Nike's running roots, with the running category experiencing a 20% growth last quarter [21] - Nike is actively targeting female athletes, launching initiatives like the NikeSkims brand and expanding partnerships with the WNBA [25][26] Analyst Perspectives - Analysts have given Hill a mixed review, with some rating his efforts a "B" due to slower-than-expected progress, while others have not assigned a grade yet [3][37] - Long-term optimism remains, with expectations for improved product creation and brand marketing, despite challenges in the competitive sportswear market and declining sales in China [39][40]