Latest news with #Konik
Yahoo
29-05-2025
- Business
- Yahoo
Dick's CEO Lauren Hobart Says Nike Is a ‘Very Important' Strategic Partner Following Q1 Results
As Dick's Sporting Goods wraps up a strong first quarter, analysts are eager to hear more about the retailer's position on Nike Inc. as the company brings Foot Locker into the fold later this year. According to Randal Konik, equity analyst at Jefferies, Nike stands to benefit from Dick's momentum, as the Swoosh focuses even more on its wholesale distribution. More from WWD 'Ensuring a Safe and Secure Shopping Environment Is Key for Retailers,' NRF Says Jalen Brunson Will Get His First Nike Kobe Sneaker Release Later This Year The Best Nike Sneakers Releasing in June 'Dick's management emphasized that its relationship with Nike remains 'strategic,' expressing continued satisfaction with the partnership,' Konik wrote in a research note on Wednesday. 'This signals frequent collaboration and alignment between the two companies, reinforcing Nike's importance within Dick's merchandising strategy.' Konik added that the sporting goods retailer 'remains bullish' on Nike's innovation pipeline, particularly in running and lifestyle categories. Dick's cited strength in Nike's running pipeline, where the Pegasus Premium and Vomero 18 sneaker styles have been selling out online. This momentum supports Nike's product-led recovery strategy, the analyst wrote. This echoes the sentiment shared by Dick's Sporting Goods president and chief executive officer Lauren Hobart, who affirmed on Wednesday's first-quarter earnings call with analysts that Nike is 'a very important' strategic partner for the company. 'Nike continues to perform really, really well for us,' Hobart said. 'As we look to the future, we've heard about some distribution changes. [But] one thing that you can say about Nike time in, and time out, is that they are very good at segmenting their products. So, we expect minimal overlap with some of the new distribution. There's a lot of great stuff going on.' Looking ahead, footwear remains a 'very strong business' for Dick's Sporting Goods, according to its CEO. Konik added that this is a 'positive signal 'for Nike, which is a key brand in Dick's footwear assortment. Moreover, a better-run Foot Locker under Dick's leadership would be a net benefit for Nike by reinforcing its distribution strategy and solidifying its position in athletic retail, Konik said in a note following the announcement earlier this month that Dick's would scoop up Foot Locker in a $2.4 billion deal. Konik said earlier this month that as Nike CEO Elliott Hill strengthens an already robust relationship with Dick's, the consolidation of the two retailers 'could enhance Nike's retail presence and brand consistency.' He noted that Nike leads footwear sales at Dick's, a key growth category that accounts for 28 percent of the sporting goods retailer's business, while the Swoosh represents half of Foot Locker's sales, 'underscoring the strategic importance of both channels to Nike's wholesale strategy.' This comes as Dick's Sporting Goods saw net sales increase 5.2 percent to $3.18 billion in the first quarter of 2025, up from $3.02 billion in the same year-ago period. Net income in the quarter ended May 3 was down 4 percent to $264 million, or $3.24 per diluted share, compared with $275 million, or $3.30 per diluted share, a year earlier. Excluding one-time items related to its acquisition of Foot Locker, Dick's posted earnings per share of $3.37. Looking ahead, the company expects net sales for the full fiscal year 2025 to be between $13.6 billion and $13.9 billion, with earnings per diluted share in the range of $13.80 to $14.40. For now, Dick's outlook doesn't include acquisition-related costs or results from the Foot Locker merger, but does take into account any current tariff-related expenses. Best of WWD All the Retailers That Nike Left and Then Went Back Mikey Madison's Elegant Red Carpet Shoe Style [PHOTOS] Julia Fox's Sleekest and Boldest Shoe Looks Over the Years [Photos] 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
CNBC
09-05-2025
- Business
- CNBC
Buy this media stock that's 'positioned for sustained success,' says Jefferies
Jefferies has nothing but glowing remarks for TKO Holdings following rosy first-quarter results at the owner of Ultimate Fighting Championship and World Wrestling Entertainment . "TKO delivered another strong Q, outperforming expectations on top- and bottom-line. Its robust business model and diversified revenue streams are bolstered by strategic acquisitions and $40M in cost synergies," analyst Randall Konik wrote on Friday. TKO also raised its full-year revenue and adjusted EBITDA outlook, he said. "Given mgmt raising F'25 guidance and a > 60% [free cash flow] conversion, TKO is positioned for sustained success," Konik added. Konik reiterated a buy rating on the stock, alongside an unchanged $220 per share price target. Jefferies had already raised the price target, which now implies about 30% upside from Thursday's $168.96 close, from $200 in March. TKO YTD mountain TKO Holdings stock in 2025. The analyst highlighted TKO's expansive portfolio of media properties, adding that he expects WWE future expansion with Netflix and forthcoming boxing promotions to serve as growth catalysts. Recent record breaking events for both the WWE and UFC are indicative of more successful live events in the pipeline, he said. TKO also boasts a diversified business model, Konik added, which could be a key driver to raise revenue. "TKO's diversified revenue streams and strategic integrations showcase its robust" business model, the analyst said. "The company's success was evident in UFC 1Q results, with a 15% revenue increase to $360M and a 66% surge in live events and hospitality revenue, driven by high site fees and ticket sales from events like the Fight Night in Saudi Arabia." Konik also said the upcoming renegotiation of the UFC's media rights is a "major opportunity" for the company, which could see TKO "potentially enhance monetization while balancing reach and brand growth in a strong market for sports rights." The UFC currently has a partnership with ESPN that's set to run out at the end of 2025. Shares have advanced almost 13% so far in 2025.
Yahoo
03-03-2025
- Business
- Yahoo
Sports Stocks Slump in February as Consumer Spending Worries Emerge
Souring consumer sentiment knocked sports stocks back 4% in February, as apparel and gear makers bore the brunt of a market wide slump. The Sportico Sports Stock Index slipped 62 points in February, ending at 1,415 and failing to follow through on a scorching start to 2025. The index declined more than the broad market, which dropped a little more than 1% in the month, as consumer discretionary stocks across the board dragged down the S&P 500. Most sports stocks fit into the consumer discretionary category. More from Rainbow Six Crowd Shows Esports Still Alive After Wall Street Bust NASCAR's Revamped TV Slate Features New Streaming, TV Partners Fox Rides Streaming Wave to Record 127.7M Super Bowl Viewership Splash 'After a strong 2023 and '24, '25 follows one of the best retail environments ever seen. However, heightened uncertainty, tougher comps and a less robust consumer, combined with increasing inventories and peaking margins could spell trouble for consumer discretionary in 2025,' Jefferies analyst Randal Konik said in a late February research note. 'Although metrics point to general consumer health, consumers remain selective in their spending behavior… prioritizing non-discretionary items and moderating big-ticket spending in non-essential categories.' While there are a number of factors playing into weaker discretionary stocks—global freight rates are higher due to conflict in the Red Sea area, and many companies face a tougher climb to top their excellent 2024 sales—it is mainly consumer worries about inflation that are dragging stocks lower, according to Konik. Weaker sentiment has caused the dollar to drop relative to foreign currencies, creating headwinds for Under Armour (UAA, down 15% in February) and Topgolf Callaway Brands (MODG, down 20%), two of the worst Sportico index performers in the month. The tariffs being implemented by President Donald Trump also add concern, even though for most sports-related organizations they're not especially impactful; tariffs on China-sourced goods will cost Topgolf Callaway about $5 million in 2025, for instance. Still, sneaker maker On Holdings (ONON down 22%) and Amer Sports (AS, down 8%) were other losers with notable exposure to tariffs. Sports-centric streamer Fubo (FUBO) saw the largest decline of any stock last month, shedding 31%. The drop largely came Friday when the company issued weaker guidance for the current quarter, with subscriber count slipping about 4% year-over-year largely as a result of Fubo losing the ability to offer Univision and Discovery channels. Wall Street analysts also expressed some concern about the potential effect of ESPN not renewing its deal with Major League Baseball after this year and how that might affect Fubo's ability to offer baseball games once it is majority-owned by Disney in a planned merger of Fubo and Disney streaming assets. 'The primary goal is to continue distributing live channels,' Fubo CEO David Gandler said on a conference call Friday. 'Should Major League Baseball decide to go in [the] direction as it did—managing some of the local sports teams, such as the Padres—we will certainly look to figure out a way to work together.' (Fubo carried the league-produced in 2024 and will again this season.) Overall, 28 of the Sportico Sports Stock Index components fell in February. Even with the monthly decline, the index is up 3% for 2025, besting the S&P which is barely up year-to-date. Of the dozen sports stock gainers, Fox Corporation (FOX) led the pack, advancing 13% on strong 2024 results stemming from positive World Series, NFL and college football ratings, along with heavy political ad spending around the 2024 elections. The company also announced February's Super Bowl generated more than $800 million in gross revenue. Fox said it is benefitting from the rise in 'skinny' bundles offered by DirecTV and Comcast. 'Pretty much the entirety of our portfolio, our bouquet of channels, a couple of small exceptions are in those bundles,' Fox executive chairman Lachlan Murdoch said on a call with analysts at the beginning of February. 'So from a Fox perspective, this [sic] is not a skinny bundle. This is a lean and mean bundle. So, it's jacked, this bundle.' Murdoch also said the company will offer its own direct-to-consumer streaming bundle by year's end. Video game publisher Electronic Arts (EA, up 12%) and Take Two (TTWO, also up 12%) rounded out the top three performers for the month. Take Two said it expects 2025 to be its best year ever, revenue-wise, as a slew of new titles make their way to market and its NBA 2K franchise showed great performance to end 2024. EA, on the other hand, is still down 12% on the year having been hammered in January on weakness in its soccer game franchise EA Sports FC, the former FIFA-branded game, and in a new role-playing title. The Sportico Sports Stock Index is a basket of 40 companies that rely on sports for a significant portion of their future growth. The index includes sports teams such as the Atlanta Braves (BATRA, up 3%), league owners such as Pro Bowlers' parent Lucky Strike Entertainment (LUCK, up 4%) and sports technology businesses like Sportradar (SRAD, up 1%). The index was launched on August 1, 2020, at 1,000 and is up more than 40% since. To be included in the index, stocks must trade in the U.S. in sufficient volume and maintain a market value of at least $50 million. The index is equal-weighted, which means every quarter the 40 stocks are reset to constitute 2.5% of the index weighting. Stocks are dropped and added as needed on a quarterly basis. Best of NFL Private Equity Ownership Rules: PE Can Now Own Stakes in Teams Most Expensive Sports Memorabilia and Collectibles in History Why Sports Tickets Are More Expensive Than Ever
Yahoo
24-02-2025
- Business
- Yahoo
Jefferies Upgrades Nike, Predicts Strong Growth & Big Earnings Recovery by 2027
Nike (NYSE:NKE) received an upgrade from Jefferies analyst Randal Konik, who raised the stock to Buy from Hold and increased the price target by 53%, citing the company's resilience and strong brand presence despite past missteps. Warning! GuruFocus has detected 4 Warning Signs with RIVN. Konik highlighted CEO Elliott Hill's focus on addressing product and distribution challenges, positioning Nike to regain lost market share and drive a V-shaped margin and earnings recovery by FY27, ahead of current consensus estimates. According to GlobalData, the athletic footwear and apparel market is projected to grow at a 3% and 4% compound annual growth rate (CAGR) through 2028, supported by long-term consumer trends favoring comfort-driven apparel. However, Konik expects Nike to outpace the market with a ~7% CAGR versus the ~3% industry average. With more than 50% of potential buyers still choosing Nike for athletic footwear, Konik believes new leadership will strengthen product direction and restore balance between direct-to-consumer and wholesale strategies. This article first appeared on GuruFocus.
