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]

Core Insights - NIKE Inc. (NKE) is fundamentally strong, focusing on sustainable and profitable long-term growth, but faces valuation concerns with a forward 12-month P/E ratio of 30.94X, exceeding the industry average of 25.96X [1][6] - The company's elevated price-to-sales (P/S) ratio of 1.93X also raises caution among investors, as it is above the industry's 1.66X, coupled with a Value Score of D indicating a lack of compelling value at current levels [2][5] Valuation Comparison - NIKE's P/E ratio of 30.94X is significantly higher than competitors like adidas (15.97X), Steven Madden (19.5X), and Wolverine World Wide (10.83X), suggesting a disconnect between its valuation and growth trajectory [4][6] - The stock has underperformed the Consumer Discretionary sector and broader market indices, with a year-to-date decline of 17.5% compared to a 20.4% decline in the industry [6][7] Performance and Market Dynamics - NIKE's stock trades 24.7% below its 52-week high of $82.44 and 18.8% above its 52-week low of $52.28, indicating bearish sentiment as it trades below its 50- and 200-day moving averages [10][11] - The company is navigating a transitional phase with structural realignment and macroeconomic pressures affecting near-term performance, despite solid fundamentals [14][15] Regional Performance - North America shows signs of progress, particularly in running, training, and basketball, while Greater China faces challenges with weaker store traffic and high promotional activity [16][17] - NIKE's digital business is undergoing a reset to rebuild full-price sales and improve consumer engagement [16][17] Management Initiatives - Management's "Win Now" and "Sport Offense" initiatives aim to simplify operations and focus on sport-led innovation, which are essential for stabilizing the business and restoring growth [17][23] - Despite near-term profitability constraints from cost inflation and tariffs, these initiatives provide a foundation for recovery [22][23] Earnings Estimates - The Zacks Consensus Estimate for NIKE's fiscal 2026 revenues implies a 0.6% year-over-year growth, while EPS suggests a 23.6% year-over-year decline [18][21] - For fiscal 2027, the consensus indicates revenues and EPS growth of 5.2% and 50.5% year-over-year, respectively [18][21]

Core Insights - Caleres Inc. (CAL) shares experienced a significant increase of 9.4%, closing at $11.38, following a period of 20.3% loss over the past four weeks, indicating a strong recovery in investor sentiment [1][2]. Financial Performance - The company demonstrated strong earnings momentum with solid revenue growth, margin expansion, and robust cash generation, particularly from its Famous Footwear and Brand Portfolio segments [2]. - For the upcoming quarterly report, Caleres is expected to post earnings of $0.75 per share, reflecting a year-over-year decline of 39%, while revenues are projected to reach $770.44 million, marking a 4% increase from the previous year [3]. Market Position and Strategy - Caleres has effectively managed its inventory and maintained a sharp focus on profitability, which has enhanced investor confidence [2]. - The company’s diversified brand mix and healthy balance sheet position it well to sustain its upward stock trajectory amid improving consumer demand trends [2]. Earnings Estimates and Stock Movement - The consensus EPS estimate for Caleres has remained unchanged over the last 30 days, suggesting that the stock's price movement may not continue without trends in earnings estimate revisions [4]. - The stock currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook in the market [5].

Core Insights - Steven Madden reported quarterly earnings of $0.43 per share, missing the Zacks Consensus Estimate of $0.44 per share, and down from $0.91 per share a year ago, representing an earnings surprise of -2.27% [1] - The company posted revenues of $667.88 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 4.44%, compared to $624.67 million in the same quarter last year [2] - Steven Madden shares have declined approximately 22.8% year-to-date, contrasting with the S&P 500's gain of 15.1% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.27 on revenues of $690.07 million, and for the current fiscal year, it is $1.51 on revenues of $2.5 billion [7] - The estimate revisions trend for Steven Madden was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Shoes and Retail Apparel industry, to which Steven Madden belongs, is currently ranked in the bottom 28% of over 250 Zacks industries, suggesting potential challenges for stock performance [8]

Core Insights - Wolverine World Wide (WWW) reported quarterly earnings of $0.36 per share, exceeding the Zacks Consensus Estimate of $0.33 per share, and showing an increase from $0.29 per share a year ago, resulting in an earnings surprise of +9.09% [1] - The company achieved revenues of $470.3 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.51% and up from $440.2 million year-over-year [2] - Wolverine has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] Earnings Outlook - The future performance of Wolverine's stock will largely depend on management's commentary during the earnings call and the sustainability of the stock's immediate price movement based on recent earnings and future expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.46 on revenues of $518.74 million, and for the current fiscal year, it is $1.33 on revenues of $1.87 billion [7] Industry Context - The Shoes and Retail Apparel industry, to which Wolverine belongs, is currently ranked in the bottom 28% of over 250 Zacks industries, which may impact stock performance [8] - Caleres Inc. (CAL), another company in the same industry, is expected to report quarterly earnings of $0.75 per share, reflecting a year-over-year decline of -39% [9]

Company Performance - Nike's stock closed at $67.43, reflecting a -1.69% change from the previous day's closing price, underperforming the S&P 500's gain of 0.23% [1] - Over the past month, Nike's shares experienced a loss of 1.38%, outperforming the Consumer Discretionary sector's loss of 4.38% but underperforming the S&P 500's gain of 3.57% [1] Upcoming Earnings - Analysts predict Nike will report an EPS of $0.37, indicating a significant decline of 52.56% compared to the same quarter last year [2] - Revenue is anticipated to be $12.14 billion, reflecting a 1.74% decrease from the same quarter last year [2] Full Year Estimates - For the full year, earnings are projected at $1.65 per share, a decline of 23.61%, while revenue is expected to reach $46.5 billion, showing a slight increase of 0.42% from the previous year [3] Analyst Estimates and Stock Performance - Recent changes in analyst estimates are linked to stock price performance, with positive revisions indicating optimism about the business outlook [4][3] - The Zacks Rank system, which assesses estimate changes, currently ranks Nike at 3 (Hold) [5] Valuation Metrics - Nike's Forward P/E ratio stands at 41.64, significantly higher than the industry average of 18.51 [6] - The PEG ratio for Nike is 2.53, compared to the industry average PEG ratio of 0.81 [6] Industry Context - The Shoes and Retail Apparel industry, part of the Consumer Discretionary sector, holds a Zacks Industry Rank of 221, placing it in the bottom 11% of over 250 industries [7] - The top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Carter's (CRI) came out with quarterly earnings of $0.74 per share, missing the Zacks Consensus Estimate of $0.78 per share. This compares to earnings of $1.64 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -5.13%. A quarter ago, it was expected that this maker of children's apparel and accessories would post earnings of $0.43 per share when it actually produced earnings of $0.17, delivering a surprise of -60.47%.Over the las ...

For those looking to find strong Consumer Discretionary stocks, it is prudent to search for companies in the group that are outperforming their peers. Sony (SONY) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Consumer Discretionary sector should help us answer this question.Sony is a member of the Consumer Discretionary sector. ...

Core Viewpoint - Investors in Birkenstock Holding PLC should closely monitor the stock due to significant movements in the options market, particularly the high implied volatility of the Oct 17, 2025 $22.00 Call option [1] Company Analysis - Birkenstock Holding PLC currently holds a Zacks Rank 3 (Hold) in the Shoes and Retail Apparel Industry, which is positioned in the bottom 31% of the Zacks Industry Rank [3] - Over the past 60 days, four analysts have raised their earnings estimates for the current quarter, while none have lowered their estimates, resulting in a flat Zacks Consensus Estimate of 40 cents per share for the current quarter [3] Options Market Insights - The high implied volatility surrounding Birkenstock Holding PLC suggests that options traders are anticipating a significant price movement, which could indicate an upcoming event that may lead to a substantial rally or sell-off [2][4] - Seasoned options traders often seek out options with high implied volatility to sell premium, aiming to benefit from the decay of the option's value if the underlying stock does not move as much as expected by expiration [4]

Core Viewpoint - NIKE Inc. (NKE) has experienced a decline in stock performance, falling below key technical indicators, indicating bearish sentiment and a shift in investor confidence [1][2][9]. Stock Performance - NKE shares have lost 6.3% over the past three months, underperforming the Zacks Shoes and Retail Apparel industry's decline of 2.5% and the broader Zacks Consumer Discretionary sector's fall of 1.8% [6]. - The stock closed at $68.91 on October 8, 2025, below its 200-day simple moving average (SMA) of $69.13, and has also traded below its 50-day SMA since September 5, 2025 [1][2][10]. - Compared to competitors, NKE's performance is weaker, with Wolverine World Wide and Steven Madden seeing gains of 29% and 30.2%, respectively, while NKE outperformed adidas AG, which declined by 12.8% [7]. Strategic Transition - NIKE's ongoing transition, driven by the "Win Now" strategy, aims to shift focus from aging products to innovation-led performance items, which has created a revenue headwind as the company clears old inventory [11][12]. - The first-quarter fiscal 2026 results highlighted revenue declines in critical markets like North America and Greater China, attributed to promotional activities and local competition [12]. - Despite challenges, NIKE's fundamentals remain strong, with growth in performance categories like Running and Global Football indicating potential for future consumer engagement [21]. Financial Metrics - NIKE's current forward 12-month price-to-earnings (P/E) ratio stands at 34.64X, significantly higher than the industry average of 29.76X and the S&P 500's average of 23.65X, raising concerns about valuation [15][17]. - The Zacks Consensus Estimate for fiscal 2026 indicates a 0.2% year-over-year revenue growth, but a 23.2% decline in EPS, while fiscal 2027 estimates suggest 5.7% revenue growth and 56.4% EPS growth [23]. Investor Sentiment - The stock's current trading position below both the 50 and 200-day SMAs reflects cautious investor sentiment, with a delicate balance between optimism for long-term growth and skepticism regarding near-term execution risks [24][25]. - Given the elevated valuation and lack of near-term growth visibility, it may be prudent for investors to wait for signs of revenue stabilization and margin recovery before making new investments [25].