Core Viewpoint - Nike is currently undergoing a challenging reset, raising questions for investors about the sustainability of its dividend payouts amidst operational struggles [1][2]. Dividend Growth - Nike has a strong history of paying and increasing dividends, with an annual dividend growth from $0.16 per share in 2006 to $1.64 per share in 2026, reflecting an annual growth rate of over 12% [3]. - If Nike increases its dividend this year, it will join the Dividend Aristocrats, a group of S&P 500 companies that have raised dividends for 25 consecutive years [3]. Financial Performance - Despite current challenges, Nike generated over $2.4 billion in free cash flow over the past year, which comfortably covers its annual dividend obligation of approximately $1.7 billion [4]. - The dividend yield has increased to 2.4%, up from less than 1% in 2021 and the historical average of around 1%, reflecting a 63% decline from its all-time highs [5]. Turnaround Strategy - Nike is in the process of addressing multiple issues, including reliance on classic sneakers, a direct-to-consumer strategy that has alienated wholesale partners, and competition from emerging brands [10]. - The company aims to increase revenue from $46.3 billion to $58 billion, adjusted EPS from $2.16 to $4.22, free cash flow from $3.27 billion to $3.91 billion, and annual dividends from $1.57 per share to $2 per share [9].

Group 1 - WSS launched the "Best Value Always" campaign featuring athletes Hirving "Chucky" Lozano and Adrián González, emphasizing cultural pride and generational inspiration for back-to-school season [1][2] - The campaign aims to instill confidence in children as they prepare for the new school year, aligning with WSS's community-focused values [2] - WSS is hosting in-store Back-to-School events from July 17 to August 18, offering free school supplies, haircuts, and giveaways to support families [3][4] Group 2 - WSS is positioned as a go-to destination for back-to-school apparel, providing styles that promote self-expression and readiness for school and sports [5] - The company, a banner of Foot Locker, Inc., operates over 150 stores nationwide, offering a wide selection of footwear and apparel from top brands [6] - WSS features various product categories including classic sneakers, soccer-inspired styles, modern runners, and functional backpacks, catering to diverse customer needs [8]