We're buying Nike, shorting Lululemon against it, says Jefferies' Randy Konik
CNBC's 'Fast Money' is joined by Randy Konik, managing director at Jefferies, to discuss Nike's fiscal fourth-quarter earnings results, which beat expectations on the top and bottom lines.
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Nike says Trump tariffs could raise its costs by $1bn
Nike says US President Donald Trump's tariffs on key trading partners could add around $1bn (£730m) to it costs this year. Company executives also said the the sportwear giant would cut its reliance on producing goods in China to ease the impact of US trade policies. Last month, Nike said it would raise prices on some trainers and clothing in the US from early June, weeks after rival Adidas warned it would have to hike the cost of goods due to tariffs. Nike's shares jumped by more than 10% in extended trading after the firm forecast a smaller drop in first quarter revenue than many analysts had expected. The company's earnings for the last three months also topped estimates, despite being its worst quarterly figures for more than three years. Nike announced fourth quarter revenue of $11.1bn - the lowest since the third quarter of 2022. Chief financial officer Matthew Friend said Nike would move some production from China, which was hit with the biggest tariff increases, to other countries in response to Trump's tariffs. China currently manufacturers 16% of Nike footwear that ends up in the US. Mr Friend said that figure would be cut to a "high single-digit percentage range" by the end of May 2026. Trump announced sweeping "Liberation Day" tariffs on most goods from countries around the world on 2 April. In April, he suspended most of those tariffs to allow for talks with the affected countries, with one top adviser promising "90 deals in 90 days". The move dropped tariffs to 10%, instead of the far higher rates that goods from many trading partners faced. What tariffs has Trump announced and why? The White House is now facing growing questions about what the president is planning to do about tariffs, as the 90-day pause is due to expire on 9 July. In remarks at the White House on Thursday, Trump maintained that talks were going well, pointing to an agreement reached with China and saying there was another "coming up with India, maybe". But he also warned "We're not going to make deals with everybody". "Some we're just going to send them a letter, say thank you very much. You're going to pay 25, 35, 45%. That's the easy way to do it," he said. "My people don't want to do it that way. They want to do some of it, but they want to make more deals than I would do," he added. Commerce Secretary Howard Lutnick later told Bloomberg that the agreement with China formalised terms laid out in trade talks, which included a commitment from Beijing to deliver rare earths minerals used in everything from planes to wind turbines. Treasury Secretary Scott Bessent has previously raised the possibility that Trump could extend the deadline, depending on how talks are going. On Thursday, White House spokesperson Karoline Leavitt said both that the deadline was "not critical" and that Trump was prepared to present countries with "deals" that would set new tariff rates. The US and China announced an agreement earlier this month aimed at ensuring US supply to critical magnets and rare earths, after concerns about access had risked re-igniting trade tensions between the two economic superpowers. At the White House on Thursday, Trump said he had "signed" a deal with China without giving further details. "The administration and China agreed to an additional understanding for a framework to implement the Geneva agreement," a White House official said later. Trade between the two sides was nearly shut down after Trump raised tariffs and China hit back in a barrage of tariffs in April that had nearly shut down trade between the two countries. The US and China subsequently agreed to reduce - but not eliminate - those tariffs. What tariffs has Trump announced and why? Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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2 hours ago
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CNBC Daily Open: Wall Street is chill, cheeky and cruising
Markets this week? Totally unbothered — like they're on a beach somewhere, sipping a cold drink and ignoring the headlines. Geopolitical tensions flared (again), oil prices plunged, and defense stocks couldn't make up their mind — but the broader market? Barely blinked. The S&P 500 flirted with record highs, the Nasdaq kept cruising thanks to its AI darlings, and even small caps got in on the action. It's almost as if investors looked at the chaos and said, "Meh, we're good." What's driving this chilled-out mood? Part of it is rate-cut optimism creeping back in. Oil's sudden drop took some inflation pressure off the table, and dovish murmurs from the Fed gave traders just enough hope that September could be in play for a cut. Bond yields eased, and risk appetite returned. Sure, there are risks everywhere — from Middle East tensions to stretched valuations in some corners of the market — but right now, Wall Street seems to be in full summer mode. Cool, calm, and slightly detached. Will it last? Hard to say. Markets have a habit of waking up just when you least expect it. But for now, they're tuning out the noise and catching rays. Tariff pause "could be extended.'' Trump's "reciprocal" tariffs are set to resume early July, but White House Press Secretary Karoline Leavitt told reporters on Thursday the deadlines are "not critical" and will depend on the U.S. President's decision. U.S. markets advanced Thursday. Buoyed by Leavitt's comments, the S&P 500 closed at 6,141.02, just a few points away from its intra-day high. The Stoxx Europe 600 ticked up 0.09%. Mining and defense stocks were among the biggest gainers. Tesla's vice president of manufacturing and operations is out. Omead Afshar was fired by CEO Elon Musk amid declining sales in key markets. Chinese technology company Xiaomi on Thursday priced a new electric SUV lower than Tesla's Model Y. Nike expects a $1 billion hit from tariffs. During an earnings call on Thursday, Nike's finance chief said the company will tweak its supply chains and increase prices to "mitigate" that cost. Nike beat Wall Street expectations for fiscal fourth-quarter earnings. [PRO] Three AI stocks to play. Swiss banking giant UBS highlighted three pillars of artificial intelligence that will drive demand, and picked what it thinks will be winners in the the stock market made it back to a new record — even with so much still to worry about The S&P 500 is less than 0.1% away from closing at a new record, rebounding from a near 20% sell-off in April. The wall of worry has been crumbling little by little over the past four months. Perhaps most importantly, as Trump backed off from the stiffest tariffs on key U.S. partners. Corporate earnings have also held up well despite policy uncertainty. For the second quarter, the S&P 500 earnings grew by 4.9%, marking the eighth consecutive quarter of year-over-year earnings growth for the index, according to FactSet.
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2 hours ago
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The Key Takeaways From Nike's 4th-Qtr Earnings Report
SW Retail Advisors President and founder Stacey Widlitz reacts to Nike's fiscal fourth-quarter earnings report on "Bloomberg The Close." Nike's revenue fell 11% to $11.1 billion in the quarter ended May 31. That decline was less than the average analyst estimate compiled by Bloomberg.
