Companies in the Zacks Shoes and Retail Apparel industry are supported by strong premiumization and digital momentum. Consumers are increasingly gravitating toward performance-driven, high-quality products that blend comfort, durability and style, supporting higher price points and stronger brand loyalty. Continuous innovation in cushioning technologies, sustainable materials and product customization, along with expanding direct-to-consumer and e-commerce channels, is improving margins and customer engagem ...

Carter's (CRI) came out with quarterly earnings of $1.9 per share, beating the Zacks Consensus Estimate of $1.7 per share. This compares to earnings of $2.39 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +12.09%. A quarter ago, it was expected that this maker of children's apparel and accessories would post earnings of $0.78 per share when it actually produced earnings of $0.74, delivering a surprise of -5.13%.Over the last ...

The Consumer Discretionary group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Carter's (CRI) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.Carter's is a member of the Consumer Discretionary sector. This group includes 255 individual stocks and currently holds a Zacks Sector Rank of #9. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of ...

Steven Madden (SHOO) came out with quarterly earnings of $0.48 per share, beating the Zacks Consensus Estimate of $0.46 per share. This compares to earnings of $0.55 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +5.10%. A quarter ago, it was expected that this footwear and accessories retailer would post earnings of $0.44 per share when it actually produced earnings of $0.43, delivering a surprise of -2.27%.Over the last fou ...

分组1 - Birkenstock reported quarterly earnings of $0.31 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.19 per share a year ago, resulting in an earnings surprise of +1.08% [1] - The company posted revenues of $467.86 million for the quarter ended December 2025, which was a 21.3% increase from $385.88 million year-over-year, but missed the Zacks Consensus Estimate by 0.44% [2] - Over the last four quarters, Birkenstock has surpassed consensus EPS estimates four times, but has only topped revenue estimates once [2] 分组2 - The stock has underperformed the market, losing about 1.8% since the beginning of the year compared to the S&P 500's gain of 1.4% [3] - The current consensus EPS estimate for the upcoming quarter is $0.73 on revenues of $731.64 million, and for the current fiscal year, it is $2.42 on revenues of $2.77 billion [7] - The Shoes and Retail Apparel industry, to which Birkenstock belongs, is currently ranked in the bottom 34% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Core Viewpoint - NIKE Inc. (NKE) has experienced a decline in stock performance, falling below key moving averages, indicating bearish sentiment and a lack of investor confidence [1][2][23]. Stock Performance - NKE shares have dropped 15.6% over the past six months, underperforming the Zacks Shoes and Retail Apparel industry's decline of 12.8% and the broader Zacks Consumer Discretionary sector's 6.9% decline [6]. - The stock closed at $62.41 on February 9, 2026, which is 19.4% above its 52-week low of $52.28 and 24.3% below its 52-week high of $82.44 [10]. Technical Analysis - The stock has fallen below its 50-day simple moving average (SMA) of $63.89 and its 200-day SMA, indicating a shift from short-term bullish to bearish sentiment [1][2][9]. - A drop below these moving averages typically signals weakness and reflects fading investor confidence [2]. Competitive Landscape - NKE's performance is notably weaker than competitors such as Carter's Inc. (CRI) and Steven Madden (SHOO), which have seen stock increases of 56% and 48.5%, respectively, in the same timeframe [7]. - NKE also lagged behind adidas AG (ADDYY), which experienced a decline of only 3.8% [7]. Margin and Revenue Challenges - NIKE faces significant margin pressure due to $1.5 billion in annualized product costs linked to higher U.S. tariffs, which is expected to impact fiscal 2026 margins by 320 basis points [12]. - Greater China revenues fell by 16%, with EBIT dropping nearly 50%, highlighting geographic weaknesses and challenges in brand premiumization [13]. Future Outlook - NIKE has guided for low-single-digit revenue declines in the third quarter of fiscal 2026, along with another quarter of margin contraction, indicating a bleak near-term outlook [15]. - The Zacks Consensus Estimate for fiscal 2026 EPS remains unchanged, while the estimate for fiscal 2027 EPS has decreased by 1.2% [16]. Valuation Concerns - NIKE's forward 12-month price-to-earnings (P/E) ratio stands at 28.94X, which is higher than the industry average of 26.45X and the S&P 500's average of 22.98X, raising concerns about the stock's valuation [19][20]. - Compared to peers like Carter's, Steven Madden, and adidas, which have lower P/E ratios, NIKE's valuation appears misaligned with its growth trajectory [20].

Company Performance - Nike's stock closed at $63.91, reflecting a +1.93% change from the previous day's closing price, but lagged behind the S&P 500's daily gain of 2.05% [1] - Over the past month, Nike's shares experienced a loss of 3.92%, outperforming the Consumer Discretionary sector's loss of 5.61% and underperforming the S&P 500's loss of 1.49% [1] Upcoming Earnings Report - Nike is projected to report earnings of $0.32 per share, indicating a year-over-year decline of 40.74%, with expected revenue of $11.29 billion, representing a 0.17% increase compared to the same quarter last year [2] Annual Forecast - Zacks Consensus Estimates forecast earnings of $1.57 per share and revenue of $46.83 billion for the year, reflecting changes of -27.31% and +1.12% respectively compared to the previous year [3] Analyst Estimates and Stock Price Correlation - Recent changes to analyst estimates for Nike are crucial as they correlate with near-term stock prices, with positive revisions indicating optimism about the business outlook [3][4] Zacks Rank and Performance - Nike currently holds a Zacks Rank of 4 (Sell), with the Zacks Consensus EPS estimate having decreased by 0.33% in the past month [5] - The Zacks Rank system has shown that 1 stocks have contributed an average annual return of +25% since 1988 [5] Valuation Metrics - Nike is trading at a Forward P/E ratio of 40.05, significantly higher than the industry average of 15.76, indicating a premium valuation [6] - The company has a PEG ratio of 3.21, compared to the average PEG ratio of 1.46 for Shoes and Retail Apparel stocks [7] Industry Context - The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector and currently holds a Zacks Industry Rank of 207, placing it in the bottom 16% of over 250 industries [8]

Core Insights - The comparison between Adidas AG (ADDYY) and Nike (NKE) indicates that Adidas currently presents a better value opportunity for investors [1] Valuation Metrics - Adidas AG has a Zacks Rank of 2 (Buy), while Nike holds a Zacks Rank of 3 (Hold), suggesting a more favorable earnings outlook for Adidas [3] - The forward P/E ratio for Adidas is 15.70, significantly lower than Nike's forward P/E of 41.78, indicating that Adidas may be undervalued [5] - Adidas has a PEG ratio of 0.39, while Nike's PEG ratio is 2.81, further supporting the notion that Adidas is a better value investment [5] - The P/B ratio for Adidas is 4.8 compared to Nike's 6.86, reinforcing Adidas's stronger valuation metrics [6] - Overall, Adidas earns a Value grade of B, while Nike receives a Value grade of D, highlighting Adidas's superior valuation profile [6]

Core Insights - NIKE Inc. (NKE) shows fundamental strength but faces valuation concerns with a forward 12-month P/E ratio of 30.34X, higher than the industry average of 27.16X, indicating the stock may be relatively expensive [1][3] - The company's elevated price-to-sales (P/S) ratio of 1.95X also raises caution among investors, exceeding the industry's 1.79X, and its Value Score of D suggests it may not be a compelling value opportunity despite strong fundamentals [2][3] Valuation Comparison - NIKE's P/E ratio of 30.34X is significantly higher than competitors like adidas AG (16.2X), Steven Madden (19.9X), and Wolverine World Wide (13.37X), indicating a premium valuation that may not align with its growth trajectory [3][4] - The elevated valuation reflects high growth expectations from investors, but NIKE appears vulnerable as market sentiment shifts towards caution regarding overpriced Consumer Discretionary stocks [4] Stock Performance - NIKE shares have declined by 17.3% over the past six months, underperforming the broader industry decline of 15.4% and the Consumer Discretionary sector's decline of 7.6% [5][8] - The current stock price of $63.28 is 23.2% below its 52-week high of $82.44 and 21% above its 52-week low of $52.28, indicating bearish sentiment as it trades below its 50 and 200-day moving averages [12][13] Operational Challenges - NIKE faces near-term pressures from uneven demand, wholesale softness, and heavy promotions that are negatively impacting margins [7][16] - Elevated promotional activity and markdowns to clear aged inventory, particularly in lifestyle footwear, have weighed on gross margin performance, with management indicating that promotional pressure will persist [17][18] Long-Term Fundamentals - Despite near-term challenges, NIKE's long-term fundamentals remain intact, with management expressing confidence in the brand's global strength and connection with consumers [19][22] - The company is focusing on sport-led innovation and performance franchises, with ongoing investments in product innovation and marketing, which are expected to support future growth [21][22] Investor Outlook - NIKE is recognized as a fundamentally strong franchise with unmatched brand equity and global scale, but near-term headwinds and margin pressures continue to affect performance [23] - A neutral stance is suggested for investors, with existing shareholders encouraged to hold for long-term gains, while prospective investors may consider waiting for a more attractive entry point [24]

Core Insights - Nike's CEO Elliott Hill purchased approximately $1 million worth of company shares, leading to a 4.1% increase in stock price on the last working day of 2025, which helped the company outperform parts of the consumer discretionary sector [1][7] - Insider purchases by executives are often seen as a sign of confidence in the company's long-term prospects, especially during challenging times, which in Nike's case reassured investors amid shifting consumer demand and competitive pressures [2] Company Performance - In 2025, Nike's stock experienced volatility due to slower growth in key markets, inventory normalization, and changing consumer spending patterns, resulting in a 13.5% decline in stock price, currently around $64 [3][5] - Despite the decline, Nike benefited from easing supply chain pressures and a renewed focus on cost discipline, which helped stabilize investor sentiment [4][7] Strategic Initiatives - The company is working on rebalancing its product portfolio, refining its direct-to-consumer approach, and enhancing innovation in footwear and apparel while facing competition from established and newer brands [3] - Management's efforts to streamline operations and improve brand storytelling contributed to a gradual improvement in investor confidence throughout the year [4] Market Context - Nike's stock performance was relatively better compared to peers like Adidas AG and Birkenstock Holding plc, which saw declines of 18.4% and 28.6% respectively, while the overall industry declined by 15.2% [5]