Latest news with #NIKE
Globe and Mail
2 hours ago
- Business
- Globe and Mail
NIKE's Inventory Cleanup Continues: Is it Too Little, Too Late?
NIKE Inc. 's NKE ongoing efforts to streamline inventory and reset the marketplace remain central to its turnaround strategy. However, concerns linger about whether these moves are coming too late to reverse the broader slowdown in growth. In fourth-quarter fiscal 2025, revenues dropped nearly 12% year over year, while inventory remained flat, signaling that while progress has been made, excess stock still weighs heavily on the business. The company has aggressively discounted aging products like Air Force 1, Dunk and AJ1 through value channels, but its digital business continues to struggle with weak traffic and ongoing promotions. To regain control, NIKE is pursuing a phased inventory reset. It expects to reach a 'healthy and clean' inventory position by the end of the first half of fiscal 2026. That means more discounting in the near term and continued pressure on digital traffic, which was down 26% in the fiscal fourth quarter. In key regions like North America and EMEA, the inventory quality is improving, with better sell-through rates and growing full-price sales. However, markets like Greater China still lag, requiring deeper discounting, supply cuts and retail concept overhauls. While NIKE maintains that its inventory cleanup is on track, some analysts are skeptical. Ongoing reliance on markdowns and value channels risks brand dilution and weakens long-term consumer perception. With a $1 billion tariff headwind looming, any misstep in inventory or pricing could further delay the path to profitable growth. Success now hinges on the company's ability to clear aging stock while reigniting demand for new, full-price products. NKE's Competition in the Global Arena adidas AG ADDYY and lululemon athletica inc. LULU are the key companies competing with NIKE in the global market. adidas has made notable progress in normalizing its inventory after being weighed down by excess stock, particularly from discontinued Yeezy products. In its recent earnings reports, the company highlighted double-digit declines in inventory levels, noting that cleaner inventory helped improve sell-through rates and reduce discounting pressure. adidas has become more disciplined in supply planning, enabling it to focus on core franchises with improved full-price sales. lululemon has taken a more cautious approach to inventory management, though pressures are rising. The company reported a 23% increase in dollar inventory and 16% in units in the first quarter of fiscal 2025, mainly due to tariffs and FX, and not overstocking. While traffic in the United States remains soft, lululemon is confident in its inventory quality and has only modestly raised markdown expectations for the second half. NKE's Price Performance, Valuation & Estimates Shares of NIKE have lost 2.2% year to date compared with the industry 's decline of 6.6%. Image Source: Zacks Investment Research From a valuation standpoint, NKE trades at a forward price-to-earnings ratio of 41.17X compared with the industry's average of 29.33X. The Zacks Consensus Estimate for NKE's fiscal 2025 earnings implies a year-over-year plunge of 22.7%, while that for fiscal 2026 indicates growth of 55%. The company's EPS estimate for fiscal 2025 and fiscal 2026 has moved down in the past 30 days Image Source: Zacks Investment Research NIKE stock currently carries a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%. Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NIKE, Inc. (NKE): Free Stock Analysis Report lululemon athletica inc. (LULU): Free Stock Analysis Report Adidas AG (ADDYY): Free Stock Analysis Report
Yahoo
5 days ago
- Business
- Yahoo
Can NIKE's International Unit Outrun Global Retail Volatility?
NIKE, Inc. NKE is a globally recognized American brand specialized in athletic footwear, apparel and sports equipment. With presence in more than 190 countries worldwide, NKE leverages its iconic branding, innovation-led product development and athlete partnerships to maintain a dominant position in the global sportswear company's vast international presence serves as a key growth engine, contributing to its revenue mix and helping to mitigate geographic concentration risk amid global economic volatility. NIKE's International division is facing headwinds from global retail volatility, soft consumer demand and structural cost pressures such as tariffs and unfavorable currency movements. The near-term outlook remains cautious with soft revenues and margins the holiday order book now in hand, the company has increased visibility into the next phase of its product portfolio transition. Management noted that the holiday order book is up year over year for fiscal 2026, with growth in North America, EMEA and APLA partly offset by Greater international momentum for the near term seems challenged, NIKE's strategic playbook offers a clear path toward recovery in the long term. NIKE's globally expansive supply chain is designed to be responsive and resilient. NKE's aggressive 'Win Now' initiatives, product innovation and partner-led distribution improvements might offer further aid. NKE's Competition in the Global Arena adidas AG ADDYY and lululemon athletica inc. LULU are the key companies competing with NIKE in the global is actively pushing to expand its share in the global footwear market through product innovation, strategic collaborations and bold marketing. While recent challenges, especially in Greater China, have impacted performance, the brand remains committed to global diversification. Its regional strategies are rooted in local consumer insights, digital acceleration and tailored offerings, all aimed at reigniting growth and reinforcing its position as a global leader in is gaining strong traction in international markets, including Mainland China and the Rest of the World, as the brand connects well with customers globally. In first-quarter fiscal 2025, LULU's total international revenues increased 19% year over year and 20% in constant currency. Driven by new guest acquisition, low markdown dependence and rising brand awareness, the brand sees significant global potential. lululemon aims to grow international revenues to nearly 50% of total sales and quadruple 2021 levels by the end of 2026. NKE's Price Performance, Valuation and Estimates Shares of NIKE have lost 4.8% year to date compared with the industry's decline of 7.8%. Image Source: Zacks Investment Research From a valuation standpoint, NKE trades at a forward price-to-earnings ratio of 39.93X compared with the industry's average of 29.12X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for NKE's fiscal 2025 earnings implies a year-over-year plunge of 22.7% while that for fiscal 2026 indicates growth of 55%. The company's EPS estimate for fiscal 2025 and fiscal 2026 has moved down in the past 30 days. Image Source: Zacks Investment Research NIKE stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NIKE, Inc. (NKE) : Free Stock Analysis Report lululemon athletica inc. (LULU) : Free Stock Analysis Report Adidas AG (ADDYY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Globe and Mail
5 days ago
- Business
- Globe and Mail
Can NIKE's International Unit Outrun Global Retail Volatility?
NIKE, Inc. NKE is a globally recognized American brand specialized in athletic footwear, apparel and sports equipment. With presence in more than 190 countries worldwide, NKE leverages its iconic branding, innovation-led product development and athlete partnerships to maintain a dominant position in the global sportswear market. The company's vast international presence serves as a key growth engine, contributing to its revenue mix and helping to mitigate geographic concentration risk amid global economic volatility. NIKE's International division is facing headwinds from global retail volatility, soft consumer demand and structural cost pressures such as tariffs and unfavorable currency movements. The near-term outlook remains cautious with soft revenues and margins internationally. With the holiday order book now in hand, the company has increased visibility into the next phase of its product portfolio transition. Management noted that the holiday order book is up year over year for fiscal 2026, with growth in North America, EMEA and APLA partly offset by Greater China. Although international momentum for the near term seems challenged, NIKE's strategic playbook offers a clear path toward recovery in the long term. NIKE's globally expansive supply chain is designed to be responsive and resilient. NKE's aggressive 'Win Now' initiatives, product innovation and partner-led distribution improvements might offer further aid. NKE's Competition in the Global Arena adidas AG ADDYY and lululemon athletica inc. LULU are the key companies competing with NIKE in the global market. adidas is actively pushing to expand its share in the global footwear market through product innovation, strategic collaborations and bold marketing. While recent challenges, especially in Greater China, have impacted performance, the brand remains committed to global diversification. Its regional strategies are rooted in local consumer insights, digital acceleration and tailored offerings, all aimed at reigniting growth and reinforcing its position as a global leader in sportswear. lululemon is gaining strong traction in international markets, including Mainland China and the Rest of the World, as the brand connects well with customers globally. In first-quarter fiscal 2025, LULU's total international revenues increased 19% year over year and 20% in constant currency. Driven by new guest acquisition, low markdown dependence and rising brand awareness, the brand sees significant global potential. lululemon aims to grow international revenues to nearly 50% of total sales and quadruple 2021 levels by the end of 2026. NKE's Price Performance, Valuation and Estimates Shares of NIKE have lost 4.8% year to date compared with the industry 's decline of 7.8%. Image Source: Zacks Investment Research From a valuation standpoint, NKE trades at a forward price-to-earnings ratio of 39.93X compared with the industry's average of 29.12X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for NKE's fiscal 2025 earnings implies a year-over-year plunge of 22.7% while that for fiscal 2026 indicates growth of 55%. The company's EPS estimate for fiscal 2025 and fiscal 2026 has moved down in the past 30 days. Image Source: Zacks Investment Research NIKE stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Picks Stock Most Likely to "At Least Double" Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren't winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%. See Our Top Stock to Double (Plus 4 Runners Up) >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NIKE, Inc. (NKE): Free Stock Analysis Report lululemon athletica inc. (LULU): Free Stock Analysis Report Adidas AG (ADDYY): Free Stock Analysis Report
Yahoo
15-07-2025
- Business
- Yahoo
Is this the Best Time to Invest in Nike (NKE)?
Oakmark Funds, advised by Harris Associates, released its 'Oakmark Equity and Income Fund' Q2 2025 investor letter. A copy of the letter can be downloaded here. The equity portfolio returned 4.67% in the second quarter compared to 10.94% for the S&P 500 Index. An underweight in technology stocks and an overweight in value and mid-cap stocks led to the underperformance of the fund. The fixed income portfolio returned 1.97% compared to 1.21% for the Bloomberg U.S. Aggregate Bond Index. In addition, you can check the fund's top 5 holdings to determine its best picks for 2025. In its second quarter 2025 investor letter, Oakmark Equity and Income Fund highlighted stocks such as NIKE, Inc. (NYSE:NKE). NIKE, Inc. (NYSE:NKE) designs, develops, and markets athletic footwear, apparel, equipment, and accessories. The one-month return of NIKE, Inc. (NYSE:NKE) was 16.72%, and its shares gained 1.32% of their value over the last 52 weeks. On July 14, 2025, NIKE, Inc. (NYSE:NKE) stock closed at $72.25 per share with a market capitalization of $106.64 billion. Oakmark Equity and Income Fund stated the following regarding NIKE, Inc. (NYSE:NKE) in its second quarter 2025 investor letter: "NIKE, Inc. (NYSE:NKE) Cl B is a global leader in athletic footwear, apparel, and equipment. The company has built a leading global brand through decades of successful product innovation, marketing and partnerships with premier athletes. Since peaking in 2021, Nike's stock price has declined to roughly a third of its previous high, largely due to challenges in its direct-to consumer initiative and concerns over tariffs. In our view, Nike's new CEO is implementing a credible plan to improve fundamental performance by bolstering wholesaler relations and diversifying distribution while further increasing product innovation. We believe these actions will help to improve the health of the business over the medium-term, resulting in better growth and enhanced margins. These concerns provided us with the opportunity to purchase shares at a meaningful discount to our estimate of intrinsic value." A close-up of a hand holding a casual sneaker with the Nike logo on it. NIKE, Inc. (NYSE:NKE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 81 hedge fund portfolios held NIKE, Inc. (NYSE:NKE) at the end of the first quarter, which was 73 in the previous quarter. While we acknowledge the potential of NKE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered NIKE, Inc. (NYSE:NKE) and shared the list of stocks on Jim Cramer's radar. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey. 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
Yahoo
06-07-2025
- Business
- Yahoo
NIKE, Inc. (NKE) Is Up Because People Say 'Ooh I Want To Be In Nike,' Says Jim Cramer
We recently published . NIKE, Inc. (NYSE:NKE) is one of the stocks Jim Cramer recently discussed. NIKE, Inc. (NYSE:NKE) is a well-known American athletic apparel company. Its shares are up by a modest 3.7% year-to-date, primarily on the back of a massive 22% jump since late June. NIKE, Inc. (NYSE:NKE)'s stock has struggled in 2025 due to the potential impact of tariffs on its business due to the firm's global supply chain. However, the shares gained in June after NIKE, Inc. (NYSE:NKE)'s fiscal fourth quarter EPS and revenue of $0.14 and $11.10 billion beat analyst estimates of $0.13 and $10.72 billion. Investors were also bullish after CEO Elliot Hill commented during the earnings call that NIKE, Inc. (NYSE:NKE)'s worst days were behind it and the firm would continue to improve future performance. However, Cramer asserted that the strong share price performance was partly also due to an idea-driven market: 'Let's take the case of, say, Nike. Okay. So Nike reports a good number. Now the stock will typically be up three. Now it's up 15. Okay because people are saying ooh I want to be in Nike. Now what I'm saying is I can ignore that and focus 100% on the ten basis points that will no doubt move within the next 24 hours. People don't even know what a basis point is anymore. Do you think a millennial knows what a basis point is? A basis point. Yeah.' A team of trainers and athletes displaying a wide range of athletic and casual footwear. Earlier, the CNBC host shared he was conflicted about NIKE, Inc. (NYSE:NKE): 'I'm conflicted on Nike. On the positive side, the new CEO has a clear strategic plan to turn things around by focusing on running, basketball, football, training, and sportswear… The bottom line: I am optimistic that the worst is indeed behind Nike, or at least will be soon. And I think there's a good chance for a comeback, especially with a seasoned hands-on Nike veteran like Elliott Hill at the helm. That said, I don't have a ton of conviction in the turn happening quickly, so I'd advise you to start slowly with a small position and only buy more if Nike gives you a good reason to pull the trigger.' While we acknowledge the potential of NKE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. 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
