Investors with an interest in Shoes and Retail Apparel stocks have likely encountered both Adidas AG (ADDYY) and Nike (NKE) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with ...

Key Takeaways NKE trades at premium P/E and P/S multiples versus industry averages despite recent stock declines.NIKE faces near-term pressure from uneven demand, wholesale softness and heavy promotions hurting margins.NKE's brand strength and sport-led innovation support long-term growth, but recovery is likely to be gradual.NIKE Inc. (NKE) continues to demonstrate fundamental strength, driven by moves to support sustainable profitability. However, its current forward 12-month price-to-earnings (P/E) ratio ...

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]

Core Insights - Nike reported quarterly earnings of $0.53 per share, exceeding the Zacks Consensus Estimate of $0.37 per share, but down from $0.78 per share a year ago, representing an earnings surprise of +43.24% [1] - The company achieved revenues of $12.43 billion for the quarter ended November 2025, surpassing the Zacks Consensus Estimate by 2.35% and slightly up from $12.35 billion year-over-year [2] - Nike has consistently surpassed consensus EPS and revenue estimates over the last four quarters [2] Earnings Performance - The earnings surprise for the previous quarter was +81.48%, with actual earnings of $0.49 per share compared to an expected $0.27 [1] - The current consensus EPS estimate for the upcoming quarter is $0.47, with projected revenues of $11.39 billion, and for the current fiscal year, the estimate is $1.65 on revenues of $46.72 billion [7] Stock Performance and Outlook - Nike shares have declined approximately 13.2% year-to-date, contrasting with the S&P 500's gain of 14.3% [3] - The company's Zacks Rank is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Shoes and Retail Apparel industry, to which Nike belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Historical data indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than a factor of 2 to 1 [8]

分组1 - Birkenstock reported quarterly earnings of $0.6 per share, exceeding the Zacks Consensus Estimate of $0.4 per share, and showing an increase from $0.32 per share a year ago, representing an earnings surprise of +50.00% [1] - The company achieved revenues of $615.25 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.41%, and up from $500.9 million year-over-year [2] - Birkenstock has outperformed consensus EPS estimates in all four of the last quarters and has topped revenue estimates two times in the same period [2] 分组2 - The stock has underperformed the market, losing about 18.1% since the beginning of the year, while the S&P 500 gained 14.3% [3] - The current consensus EPS estimate for the upcoming quarter is $0.29 on revenues of $463.6 million, and for the current fiscal year, it is $2.30 on revenues of $2.75 billion [7] - The Shoes and Retail Apparel industry, to which Birkenstock belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Industry Overview - The Zacks Shoes and Retail Apparel industry is facing persistent pressures from higher input and freight costs, supply-chain inefficiencies, and elevated selling, general and administrative (SG&A) expenses related to digital and store investments, which are negatively impacting margins [1][5] - The industry is also affected by currency volatility, geopolitical uncertainty, and evolving trade and tariff policies, alongside a softer consumer backdrop and a tight labor market [1][5] Consumer Demand Trends - Demand for activewear, footwear, and wellness-focused products remains strong, driven by a broader shift towards healthier lifestyles [2][6] - Companies are leveraging this trend through product innovation, expanded athleisure assortments, and enhanced e-commerce and omnichannel capabilities [2][6] E-Commerce Investments - Digital channels are a major growth engine for the athleisure market, with brands expanding their reach through websites and social media [7] - Investments in faster delivery, supply-chain efficiency, and fulfillment enhancements are sharpening competitive edges, while physical stores are being reimagined to create a seamless omnichannel experience [7] Industry Performance - The Zacks Shoes and Retail Apparel industry has underperformed the broader Zacks Consumer Discretionary sector and the S&P 500 over the past year, with a collective decline of 18.9% [12] - The industry's current Zacks Industry Rank is 180, placing it in the bottom 25% of over 250 Zacks industries, indicating dull prospects for the near term [9][10] Valuation Metrics - The industry is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 26.34X, compared to the S&P 500's 23.44X and the sector's 18.19X [13] - Over the last five years, the industry's P/E ratio has ranged from a high of 38.15X to a low of 20.83X, with a median of 27.10X [13] Key Companies - **Steven Madden**: Positioned for durable upside through a strategic shift towards higher-margin direct-to-consumer channels, with a focus on online and owned-store growth [17][18] - **NIKE**: Set to benefit from its Consumer Direct Acceleration strategy, focusing on sports and product innovation while reducing reliance on promotions [20][22] - **Adidas**: Poised for growth due to strong demand and improved margins from price increases and a better channel mix [24][25] - **Wolverine**: Focused on brand structure and efficiency improvements, with a strong emphasis on direct-to-consumer business [28][29] - **Caleres**: Improving investment case supported by strong brand momentum and cost discipline, with a focus on inventory management [32][33]

Core Viewpoint - Caleres Inc. reported quarterly earnings of $0.67 per share, missing the Zacks Consensus Estimate of $0.75 per share, and showing a decline from $1.23 per share a year ago, indicating a significant earnings surprise of -10.67% [1][2] Financial Performance - The company posted revenues of $790.05 million for the quarter ended October 2025, surpassing the Zacks Consensus Estimate by 2.55%, and showing an increase from $740.94 million year-over-year [2] - Over the last four quarters, Caleres has exceeded consensus revenue estimates two times [2] Stock Performance - Caleres shares have declined approximately 41.8% since the beginning of the year, contrasting with the S&P 500's gain of 16.4% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.28 on revenues of $708.55 million, and for the current fiscal year, it is $1.65 on revenues of $2.75 billion [7] - The trend of estimate revisions for Caleres was mixed ahead of the earnings release, which may change following the recent report [6] Industry Context - The Shoes and Retail Apparel industry, to which Caleres belongs, is currently ranked in the bottom 36% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Caleres' stock performance [5]

Core Insights - Steven Madden's Q3 2025 earnings report showed a decline in earnings and a mixed performance in revenues, with total revenues increasing but earnings per share (EPS) falling significantly [3][4]. Financial Performance - Adjusted quarterly earnings were reported at 43 cents per share, missing the Zacks Consensus Estimate of 44 cents, and down 52.7% from 91 cents in the prior-year period [4]. - Total revenues rose 6.9% year over year to $667.9 million, but this figure missed the consensus estimate of $699 million [4]. - Adjusted gross profit increased by 11.6% year over year to $289.7 million, surpassing the estimate of $278.5 million, with an adjusted gross margin expanding 180 basis points to 43.4% [5]. - Adjusted operating income fell to $46.3 million, down 45.8% from the prior-year quarter, with an adjusted operating margin decreasing 680 basis points to 6.9% [6]. Segment Performance - Wholesale revenues totaled $442.7 million, a decline of 10.7% year over year, with a 19% decrease when excluding the recently acquired Kurt Geiger business [7]. - Direct-to-consumer revenues increased significantly by 76.6% year over year to $221.5 million, although this growth was only 1.5% when excluding Kurt Geiger [9]. Financial Health - As of the end of the quarter, the company had cash and cash equivalents of $108.7 million and stockholders' equity of $886.1 million [10]. - A cash dividend of 21 cents per share was announced, payable on December 26, 2025 [11]. Future Outlook - For Q4 2025, the company expects revenues to rise by 27% to 30% year over year, with EPS forecasted between 30 cents and 35 cents [13]. - The contribution from Kurt Geiger is anticipated to range between $182 million and $187 million in revenues for Q4, with a significant portion coming from direct-to-consumer operations [14]. Market Sentiment - Since the earnings release, there has been an upward trend in estimates, with the consensus estimate shifting by 66.67% [15]. - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations for above-average returns in the coming months [17].

Core Viewpoint - NIKE Inc. is facing significant challenges due to channel disruption, margin pressure, and uneven regional recovery, leading to a decline in stock performance and profitability [2][3][27]. Financial Performance - NIKE's stock has dropped approximately 11.1% over the past three months, slightly outperforming the Shoes and Retail Apparel industry's decline of 12.1% but underperforming the broader sector's dip of 7.2% and the S&P 500 index's growth of 6.9% [4][5]. - The company anticipates a low-single-digit revenue decline for Q2 fiscal 2026, impacted by reduced promotions and a reset in digital demand [8][12]. - The Zacks Consensus Estimate indicates a 2.4% year-over-year sales decline and a 24.1% drop in earnings per share (EPS) for fiscal 2026, with a projected recovery in fiscal 2027 showing 5% sales growth and 54.2% EPS growth [17]. Operational Challenges - Greater China remains a significant operational challenge, characterized by weak store traffic, sluggish sell-through, and a highly promotional digital marketplace, negatively affecting revenue quality and margins [3][13]. - NIKE's classic footwear franchises are still in a reset phase, further hindering overall performance [3][13]. - The company is experiencing persistent margin pressure due to higher input costs, increased wholesale discounting, and rising tariffs, with gross margins expected to decline by 300-375 basis points in Q2 fiscal 2026 [14]. Strategic Initiatives - NIKE is focusing on cleaning up inventory and repositioning its digital business towards higher full-price selling, which is expected to reinforce long-term brand health [21]. - The company is implementing a strategic "Sport Offense" reorganization aimed at enhancing product focus, accelerating innovation, and strengthening brand storytelling across key sports [20]. Valuation Concerns - NIKE's current forward 12-month price-to-earnings (P/E) ratio stands at 31.33X, which is higher than the industry average of 27.13X and the S&P 500's average of 23.44X, raising concerns about whether the stock's valuation is justified [23][24]. - The elevated valuation reflects high investor expectations for growth, but the company may be vulnerable in a cautious market environment [26]. Long-term Outlook - Despite near-term pressures, NIKE's long-term fundamentals remain strong, with momentum in performance categories and early signs of wholesale recovery [20][28]. - The company's strategic initiatives and brand strength suggest potential for a durable rebound once market conditions stabilize [22][28].

Company Performance - Nike's stock increased by 1.02% to $64.33, outperforming the S&P 500's daily gain of 0.69% [1] - Over the last month, Nike's shares decreased by 5.56%, compared to a 4.51% loss in the Consumer Discretionary sector and a 0.31% loss in the S&P 500 [1] Upcoming Earnings - Nike's earnings report is scheduled for December 18, 2025, with an expected EPS of $0.37, reflecting a 52.56% decline from the same quarter last year [2] - Revenue is forecasted at $12.15 billion, indicating a 1.64% decrease compared to the previous year [2] Full Year Estimates - For the full year, earnings are projected at $1.64 per share, a decrease of 24.07%, while revenue is expected to be $46.69 billion, showing a slight increase of 0.82% [3] - Recent revisions to analyst forecasts are important as they reflect short-term business trends, with positive revisions indicating a favorable business outlook [3] Valuation Metrics - Nike's Forward P/E ratio is 38.83, significantly higher than the industry average of 15.25 [6] - The PEG ratio for Nike is 2.26, compared to the industry average of 0.81, indicating a premium valuation relative to expected earnings growth [6] Industry Context - The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector, currently ranked 176 out of over 250 industries, placing it in the bottom 29% [7] - The Zacks Industry Rank suggests that the top 50% of rated industries outperform the bottom half by a factor of 2 to 1 [7]