Latest news with #NIKEInc
Yahoo
6 days ago
- Business
- Yahoo
NIKE Bets Big on Digital: Will It Deliver Sustainable Growth?
NIKE Inc. NKE remains a digital heavyweight, especially in key markets. It holds a top-three position in global online athleticwear sales, and its digital ecosystem reaches consumers in nearly 190 countries. The company is doubling down on digital transformation as a central pillar of its turnaround strategy, revamping its go-to-market approach, enhancing product storytelling and building premium experiences across both digital platforms and physical stores. NIKE's digital investments are focused on direct-to-consumer (DTC) models, data analytics and AI-driven personalization, aiming to create a more personalized, connected and seamless experience for its customers. The company is repositioning NIKE Digital as a premium, full-price channel, drastically reducing promotions and improving storytelling across its online platforms. Initiatives like 'zero promotional days' in North America and enhanced user experiences are early steps to regain brand heat and margin a result of these shifts, combined with a pullback in paid media, management expects digital traffic to decline double-digits in fiscal 2026. Our model projects NIKE's digital revenues to decline 1.3% in fiscal 2025 and 2% in fiscal 2026, reflecting the near-term impact of this strategic reset before the benefits of full-price positioning third-quarter fiscal 2025, NIKE Digital sales slipped 15% year over year, contributing to a 10% drop in overall Nike DTC revenues. The company attributes this decline to its intentional reduction in promotional activity, cutting North America digital promotional days from more than 30 to zero year over year. While this has impacted near-term demand, NIKE is focused on repositioning its digital channel as a full-price, premium experience. Despite the dip, digital still represents a large portion of NIKE's DTC business, which accounts for about 40% of total revenues globally, a significant indicator of its strategic importance. Looking ahead, NIKE's digital ambition is not just about sales, but shaping culture and capturing the consumer where they are. With strong early results from digital-led product drops like the Vomero 18 and Peg Premium, and the upcoming NikeSKIMS launch, NIKE is betting big on storytelling, innovation and personalization to reassert its dominance. The company's vision suggests that digital will be the arena where product energy meets consumer passion—delivered at scale, but curated with intent. lululemon athletica inc. LULU and adidas AG ADDYY are the major companies competing with NIKE in the digital a key competitor to NIKE in the athleisure space, has built a strong digital business that accounted for more than 40% of its total revenues in recent quarters. The brand maintains a robust digital footprint, supported by a seamless omnichannel experience and a loyal customer base. lululemon's digital market share in the U.S. activewear and athleisure segment has steadily expanded, particularly among higher-income female consumers - a segment where NIKE also competes. The company has leaned into personalized shopping experiences, rapid delivery, and community-driven digital engagement through its Lululemon Studio platform. While NIKE dominates in sport-performance categories, lululemon's digital business increasingly overlaps with NIKE's, especially in women's training, yoga and lifestyle apparel. This intensifying rivalry is most evident in North America, where both brands are doubling down on digital engagement and brand is reshaping its digital business, which now accounts for 20–25% of total sales, with a goal to reach 50% via DTC by 2025. The company's digital footprint spans global e-commerce, mobile apps and a strong presence on third-party platforms, supported by personalized shopping and the adiClub loyalty program. While NIKE leads in digital scale and innovation, adidas overlaps significantly in categories like sneakers, streetwear and casual sportswear, particularly among Gen Z and fashion-driven consumers. Both brands are heavily invested in key markets like North America and China, with growing competition across performance-running, lifestyle and women's activewear in the digital space. Shares of NIKE have lost around 16.3% year to date against the industry's growth of 16%. Image Source: Zacks Investment Research From a valuation standpoint, NKE trades at a forward price-to-earnings ratio of 29.33X, higher than the industry's average of 20.78X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for NKE's fiscal 2025 and 2026 earnings implies a year-over-year plunge of 46.1% and 8.7%, respectively. The company's earnings per share (EPS) estimate for fiscal 2025 has been on the rise in the past 30 days. Meanwhile, the EPS estimate for fiscal 2026 has moved south in the past 30 days. Image Source: Zacks Investment ResearchNIKE 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
Yahoo
14-04-2025
- Business
- Yahoo
Is NIKE Inc. (NKE) the Best Kid-Friendly Stock to Buy According to Billionaires?
We recently published a list of . In this article, we are going to take a look at where NIKE Inc. (NYSE:NKE) stands against other best kid-friendly stocks to buy according to billionaires. The market has been undergoing a volatile spell these past few days. Economic data from the Federal Reserve Bank of New York indicates a pattern in which stock markets reacted negatively to President Trump's tariff announcements against China in 2018 and 2019. Current market behaviour in 2025 suggests a similar, potentially more widespread, response to new trade policies. Markets have been underperforming for the first quarter of 2025, considering that the wider market fell by over 10% and the tech-heavy NASDAQ plummeted by more than 15%. The Cboe Volatility Index (aka VIX) is currently at 52.33%, compared to 17.93% at the start of the year. The year 2025 began with the revelation of DeepSeek, an AI program developed in China, which rivalled AI technology in the US Tech sector. DeepSeek requires lesser processing power, which means lower costs and improved results for users. The market immediately saw investors take on a bullish outlook, short-selling stocks before any further impact on their portfolios. In the second month of 2025, the US government's first round of Tariffs was aimed directly at China in an effort to curb the impact of DeepSeek on the United States' tech industry. In March, President Trump announced a rate of 54% tariff on Chinese goods, while China retaliated with 34% tariffs on US goods and services. DW (Deutsche Welle) reported that President Trump approved 20% tariffs on European goods & services in the latest round of 'Trump Tariffs'. Foreign investors, specifically from European countries, were quick to divest their portfolios. The US economy is considered to be entering 'continuous stagflation', which is defined as continued inflation with very low growth and high unemployment. This scenario has prompted investors to reconsider their future investment strategies. Several reports point out a growing trend among parents who are actively setting aside funds to safeguard their children's financial future. Survey results of 2000 UK investors over 18 years of age, published by the international adviser, stated that 44% of parents were stressed about making the right investment decisions regarding their children. 35% worry that they have not saved sufficiently to ensure their children's financial future. In an interview with CNBC, Stacy Francis, the President & CEO of Francis Financials in New York, spoke on how parents can educate their children on investing: 'Make sure that money can be talked about, that there's no taboos…so that your children are learning those really good financial literacy skills that they need to set themselves up for success for the rest of their life.' Investing in the markets for your children's future has the advantage of time. In a report by MorningStar, investments in stocks have the added benefit of compounding return, which means the earlier you start, the more time your investments have to grow exponentially. CNBC reported on billionaire investor Mark Cuban and how he made billions from his first few million with a long-term view on his investments. To compile this list, we thoroughly reviewed reputable sources and gathered the stocks they collectively favored. These stocks have a long-standing history of performance, with strong balance sheets and sound financials. Then, we used Insider Monkey's proprietary database of billionaire stock holdings to arrive at our list of 10 best kid-friendly stocks to buy according to billionaires as of Q4 2024. For the stocks with the same number of billionaire holdings, we have used the total value of billionaire holdings as a secondary metric to rank the stocks. Billionaires are founders or managers of some of the world's leading hedge funds and companies. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A team of trainers and athletes displaying a wide range of athletic and casual footwear. No. of Billionaires: 14 Value of total Investment by Billionaires: $3.095 billion NIKE Inc. (NYSE:NKE) is a global leader in the athletic goods industry. The company designs, develops, markets, and sells a wide range of athletic footwear, apparel, equipment, accessories, and services worldwide under prominent brands such as NIKE, Jumpman, Converse, and Chuck Taylor. These brands are considered household names for both children & parents/ adults alike. In the Q3 2025 earnings report, NIKE Inc. (NYSE:NKE) revenue was $11.27 billion, down 9.33% YoY, although beating analyst estimates by $231.5 million. EPS was $0.54, also beating estimates by $0.25. The company attributes the decline in sales to rising inflation, high tariffs but remains a market leader in high-quality athletic goods. It is among the best kid-friendly stocks to invest in. Recent declines in international markets such as the Middle East, Europe, and Asia (including China & Vietnam) were the result of reduced buying by price-conscious consumers. As per the United States International Trade Commission (USITC), China is the largest importer of shoes from the United States at 37%, while Vietnam is responsible for 29.8%. China was hit with the aforementioned 34% trade tariffs, while Vietnam was hit even harder with 46%. This is likely to further impact NIKE Inc. (NYSE:NKE)'s overall revenue figure. Experts consider these conditions as an optimal time to invest in the stock to take advantage of the lower price. Overall, NKE ranks 6th on our list of best kid-friendly stocks to buy according to billionaires. While we acknowledge the potential of NKE, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NKE but that trades at less than 5 times its earnings, check out our report about this cheapest 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. Sign in to access your portfolio
