Core Insights - Deckers Outdoor Corporation (DECK) anticipates a significant impact on its business due to recent U.S. trade policy changes, particularly higher tariffs, expecting an increase of up to $150 million in cost of goods sold for fiscal 2026 [1][10] Group 1: Business Impact - Less than 5% of Deckers' footwear production comes from China, with most production based in Southeast Asia, primarily Vietnam, which reduces but does not eliminate exposure to tariff impacts [2] - The company plans selective and staggered price increases in the U.S. and is negotiating cost-sharing agreements with manufacturing partners, but these measures will only partially offset the added costs [3] - Deckers expects its gross margin, which was a record 57.9% in the previous year, to decline in fiscal 2026 due to tariffs, increased promotional activity, higher material costs, and rising freight charges [4] Group 2: Financial Position and Strategy - Despite the challenges posed by tariffs, Deckers maintains a strong balance sheet with $1.9 billion in cash and no debt, focusing on long-term growth through brand investment, international expansion, and operational efficiency [5] - Shares of Deckers have declined by 48.7% year to date, compared to the industry's decline of 14.8% [9] - The forward price-to-earnings ratio for DECK is 16.83X, slightly below the industry's average of 17.60X, with a Value Score of D [12] Group 3: Earnings Estimates - The Zacks Consensus Estimate for DECK's fiscal 2026 earnings indicates a year-over-year decline of 4.4%, while fiscal 2027 estimates suggest a 9.1% increase [14] - Recent earnings estimates for fiscal 2026 and 2027 have been revised downward over the past 30 days [14]

Nike's (NYSE:NKE) latest results reinforced the base strength of a company challenged by market conditions to still generate a hefty upside gain of $15 a share, bringing it to $71 at this writing. Pre-earnings release this month, Nike was holding fast in the $60s. Most industry observers came down on the bearish side, citing fading China sales, year-over-year declines in US brand dominance, and slowdowns in shoes and apparel. Then, of course, the impact of tariffs... as that story unfolds for investors and ...

Core Insights - Crocs Inc. is positioned for growth in the casual footwear market, despite its stock being down nearly 10% year-to-date and trading at a discount [3] - The company is one of the most profitable in the retail footwear space, with a strong focus on maintaining pricing power and brand image [4][12] Market Growth Potential - The casual footwear market is forecasted to grow at a compounded annual growth rate (CAGR) of 7.4% through 2030, with clogs specifically expected to grow at 11.4% CAGR [7] - Crocs defines its total addressable market (TAM) across three segments, all projected to grow globally through 2030 [5] Market Share and Expansion - Crocs has increased its global market share from 0.3% in 2018 to 1.0% in 2024, focusing on "Tier 1 Markets" such as the U.S., Western Europe, India, China, Japan, and South Korea [8] - The company aims to expand its direct-to-consumer (DTC) sales, which have grown from 45.1% of total revenue in 2022 to 49.7% in 2024 [10] Sales and Profitability - Crocs brand unit sales nearly doubled from 67 million in 2019 to 127 million in 2024, with the average selling price (ASP) increasing from $18 to $26 [13] - The company's revenue grew from $1.2 billion in 2019 to $3.3 billion in 2024, demonstrating strong sales growth [13] Financial Performance - Crocs has achieved a 14% annual growth in revenue and a 15% growth in net operating profit after tax (NOPAT) since 2006 [19] - The NOPAT margin improved from 4% in 2014 to 21% in the trailing twelve months (TTM), with return on invested capital (ROIC) rising from 5% to 22% over the same period [20] Shareholder Returns - The company has repurchased $2.1 billion in shares since 2019, representing 37% of its market cap, and has a remaining authorization of $1.3 billion for further repurchases [24][26] - If share repurchases continue at the same rate as 2024, it could represent 8.6% of the current market cap [25] Challenges and Strategic Focus - Crocs has withdrawn its full-year 2025 guidance due to uncertainties related to tariffs but has identified $50 million in potential savings to offset costs [30] - The company prioritizes maintaining margins over increasing sales volume, which supports a strong brand image [31] Valuation Insights - The current price implies that the market expects Crocs' NOPAT to decline by 20%, which may be overly pessimistic given the company's historical growth rates [33] - Scenarios suggest that shares could rise by over 20% even if tariffs impact margins, indicating potential upside in the stock price [36]

Engineered for runners who move between roads and trails, the ProMorph blends responsive foam and all-terrain tractionROCKFORD, Mich., June 30, 2025 /PRNewswire/ -- Merrell, the world's leading hiking and outdoor footwear brand, is expanding its performance running portfolio with the debut of the ProMorph, an all-terrian hybrid built with responsive cushioning and confident grip across any surface. The ProMorph merges the DNA of an elite road racer with the technicality of a trail shoe, making it Merrell's ...

NIKE (NYSE: NKE ) (NEOE: NKE:CA ) was initially down over 3% after hours on the day of reporting its Q4 and FY 2025 numbers. That drastically reversed to a 15% surge the day after, essentially representing an almostExcellent academic Finance background and Finance professional with over five years of cumulative experience in Consulting & Audit Firms including a professional Valuation position, FP&A and Controlling positions, and Financial writing. I often rate hold/neutral, even when my inclination is bulli ...

ab 24 June 2025 Global Research Nike Inc. Top 10 Questions for Management We're looking for clues to determine how a Nike rebound might look: Based on our recent conversations with investors and our own view, here are our top 10 questions for NKE management to address on its upcoming earnings call: Please find questions 7-10 inside. EPS (UBS, diluted) (USD) | | 05/25E | | | --- | --- | --- | | | UBS | Cons. | | Q1 | 0.70 | 0.70 | | Q2 | 0.78 | 0.78 | | Q3 | 0.54 | 0.54 | | Q4E | 0.12 | 0.12 | | 05/25E | 2.1 ...

Core Viewpoint - Nike's new CEO Elliott Hill suggests that the company has turned a corner after reporting fiscal fourth-quarter results that exceeded low expectations, leading to a surge in stock price despite a year-to-date decline and a more than 20% drop over the past five years [1][2]. Group 1: Leadership and Strategy - CEO Elliott Hill is focused on reversing the previous leadership's missteps, particularly those of former CEO John Donahoe, who emphasized classic footwear and direct-to-consumer sales at the expense of innovation and wholesale relationships [4][5]. - Hill's "Win Now" action plan aims to restore Nike's commitment to innovation, reorganizing the business to enhance sports-specific innovation across its main brands: Nike, Jordan, and Converse [5][12]. - The company is also working to rebuild relationships with wholesalers, including a new partnership with Amazon to offer a select assortment of Nike products [6][12]. Group 2: Financial Performance - For fiscal Q4, Nike's revenue fell 12% to $11.1 billion, with Nike brand revenue down 11% to $10.8 billion, and Nike Direct revenue decreasing 14% to $4.7 billion, largely due to a 26% drop in digital sales [9][10]. - The company experienced a significant decline in gross margins, which fell 440 basis points to 40.3%, attributed to heavy discounting and declining sales [10]. - Earnings per share (EPS) plummeted 86% in the quarter to $0.14, reflecting the overall financial challenges faced by the company [10]. Group 3: Market Segmentation and Future Outlook - Nike is implementing sharper marketplace segmentation to cater to different customer price points while positioning its digital platforms and stores as premium destinations [7][8]. - Despite current weak results, Hill expresses optimism for future improvements, indicating that the groundwork is being laid for a potential turnaround [12]. - The stock is currently trading at a high valuation with a forward P/E ratio of around 39 times analysts' 2026 estimates, but if EPS can return to previous levels, the stock could trade at under 20 times earnings [13].

Core Insights - Nike's stock has increased over 20% in the past five days but is down 5% year-to-date, underperforming the S&P 500's 4% rise [2] - The company reported fourth-quarter earnings with revenue of $11.1 billion, a 12% decline, and net income of $211 million, an 86% drop from the previous year, yet still exceeded analyst expectations [2] - For fiscal 2025, total revenue was $46.3 billion, a 10% decline, and net income was $3.2 billion, a 44% decrease, with digital sales down 20% [3] - Nike plans to realign operations, streamline supply chains, and reduce reliance on China-based supply chains from 16% to high single digits by year-end [4] Financial Performance - Q1 sales are expected to decrease by a mid-single-digit percentage, with gross margin compression of 3.5 to 4.25 percentage points, including a 1-point impact from tariffs [5] - Nike is currently trading at around $72 per share, approximately 41 times projected 2026 earnings, significantly higher than its three-year average of 28 times [6] - Consensus forecasts predict a 1% revenue decline in FY 2026, followed by a potential 5% growth in FY 2027 [6] Strategic Outlook - The effectiveness of Nike's turnaround initiatives is critical for stabilizing margins and reigniting top-line growth [7] - Nike has shown vulnerability during market downturns, with significant stock price drops in 2020 and 2022, indicating potential downside risk if macroeconomic conditions weaken [8] - The company is at a pivotal moment, facing margin pressures and valuation concerns, but its long-term strategy appears promising [9]

How New Balance Went From ‘Dad Shoe’ To Scoring The No. 1 #NBADraft Prospect https://t.co/SdsgnJRm9V https://t.co/SdsgnJRm9V ...

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nike. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...