Nike Inc (NKE)

[winston]

vested

NIKE Faces Headwinds Pre-Q3 Earnings: Smart Buy or a Risky Bet?

by Rajani Lohia

The Zacks Consensus Estimate for fiscal third-quarter revenues is pegged at $11.1 billion, suggesting a 10.6% decline from the year-ago quarter’s reported figure.

The Zacks Consensus Estimate for the company’s fiscal third-quarter earnings is pegged at 28 cents per share, indicating a decline of 71.4% from the year-ago reported number.

NIKE's third-quarter fiscal 2025 results are expected to reflect ongoing challenges, including weak lifestyle product sales, sluggish digital revenues and headwinds in Greater China and certain EMEA markets.

The company trades at a forward 12-month P/E multiple of 33.24X, exceeding the industry average of 26.98X and the S&P 500’s average of 20.63X.

Source: Zack's

https://www.zacks.com/stock/news/242922 ... 313-FC05-A

[winston]

vested

Nike's Direct-to-Consumer Focus Will Drive Future Growth

Most Immediate Catalysts (1–2 Years)

• DTC Growth Acceleration – Nike is prioritizing Nike.com, SNKRS, and flagship stores, improving margins and reducing reliance on wholesalers.

• Innovation in Running & Performance – Launch of Alphafly 3, Vaporfly 4, and next-gen sportswear can drive higher demand.

• Women’s Market Expansion – Increasing focus on women’s footwear & apparel through exclusive collections and athlete partnerships.

• Cost-Saving Initiatives – Efficiency programs (including layoffs) aimed at improving margins.

Mid-Term Growth (3–5 Years)

• Emerging Market Expansion – Nike is increasing focus on India, Latin America, and Southeast Asia, where the middle class is growing.

• Sustainability Initiatives – Eco-friendly materials and circular design programs can appeal to younger consumers.

• Connected Fitness & Digital Innovation – Nike’s investments in apps, digital memberships, and tech-driven apparel could increase engagement.

Revenue & Profit Margin Expectations
• Revenue Growth: ~6–8% CAGR
• Net Profit Margin: ~14–16% (up from ~11–12%) due to higher DTC margins
Valuation Multiple Projection (P/E)
• Current P/E: ~27x
Historical: 25x-35x
• Future P/E Estimate: ~20–25x (slowing growth and rising competition could lead to a lower multiple over time.)

Source: Simply Wall Street

https://simplywall.st/community/narrati ... =Variant+1

[winston]

vested

Nike sales beat estimates in new CEO’s first full quarter

Revenue fell 9 per cent to US$11.3 billion for the quarter ended Feb 28. That’s better than the 11 per cent drop that Wall Street predicted.

Inventory fell 2 per cent in the period.

China remained a weak spot. But performance in North America and the region that includes Europe, Africa and the Middle East came in better than expected.

Source: Bloomberg

https://www.businesstimes.com.sg/compan ... ll-quarter

[winston]

FY3QMay25 results above expectation with weaker guidance

FY3QMay25 exceeds market expectations, yet 4Q guidance remains weak

Sales decline across all markets, as Company reduces promotions in selective markets in Jan-Feb'25

4QFYMay25 to reflect steeper declines in the mid-teens suggestive of continued liquidation in inventory

Nike (NKE US) 3QFYMay25 results came in ahead of market expectations.

3QFYMay25 revenues declined 9% y/y to USD11.3bn (-7% on a currency neutral basis).

Of which, NIKE Direct declined 12% y/y to USD4.7bn, while wholesale declined 7% to USD6.2bn, dragged by Greater China.

By region, all markets recorded a sales decline (North America -4% y/y, EMEA -7%, Greater China -15%, Asia Pacific & Latin America -4%), with greater drags from the footwear category.

All markets also recorded an EBIT decline across North America (-21% y/y),
EMEA (-35% y/y), Greater China (-42%) and Asia Pacific & Latin America (-27%). GP margin contracted by 3.3ppt to 41.5%, on higher wholesale discounts, inventory obsolescence and product costs.

Diluted EPS declined 30% y/y at USD0.54/sh (Consensus: USD0.30/sh). 9MFYMay25 revenue declined 9% y/y to USD35.2bn.

GP margin contracted 1ppt to 43.5%. Diluted EPS declined 26% y/y to USD2.02/sh.

Upgrade to BUY with TP at USD115. Nike has taken action to refresh its line-up of new footwear below USD100 as well as planning to scale new performance and lifestyle models ahead.

The Company is also managing expenses tightly through the product cycle transitions, with allocation of resources to maximize consumer impact.

We turn positive on Nike's activities, and upgrade our call to a BUY, with TP at USD115, equivalent to 2-year forward 44x PE.

Source: DBS

https://www.dbs.com/insightsdirect/comp ... ecid=24350

[winston]

vested

Buying the Dip in Nike's Stock Could Be a Mistake

by Daniel Sparks

It sounds like fiscal Q4 will be even worse than fiscal Q3.

Today, Nike is working to rebuild those relationships and clear excess inventory.

Nike's direct-to-consumer sales fell 12% year over year, wholesale revenue declined 7%, and gross profit margin contracted 330 basis points to 41.5% due to heavy markdowns.

Source: The Motley Fool

https://finance.yahoo.com/news/buying-d ... 00034.html

[winston]

vested

Nike’s 30-year gamble on Vietnam is rattled

Nike, the factories that produce its goods, the wholesalers that sell the goods and ultimately shoppers will all likely share portions of the cost.

Vietnam, China and Indonesia – all hard-hit by Trump tariffs – account for 95% of Nike footwear production.

The total workforce that manufactures Nike products in those three countries is roughly 850,000 – slightly larger than Apple Inc supplier Foxconn, according to company disclosures.

Half of all Nike brand sneakers are made in Vietnam now.

Nike works with over 100 apparel factories, footwear plants and equipment makers in Vietnam,

Source: The Star

https://www.thestar.com.my/business/bus ... is-rattled

[behappyalways]

Nike Is Still America's Favorite Apparel Brand
https://www.zerohedge.com/personal-fina ... arel-brand

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vested

Jefferies Highlights Nike’s (NKE) Strong Position, Maintains Buy Rating

by Ali Ahmed

NIKE, Inc. (NYSE:NKE) is positioned to gain market share because it is focused on innovation and bringing back wholesale channels. One example is the company’s partnership with Amazon.

NIKE, Inc. (NYSE:NKE) has a large total addressable market because it offers products at diverse price points, which appeal to a wide range of consumers.

Source: Insider Monkey

https://finance.yahoo.com/news/jefferie ... 23470.html

[winston]

vested

Nike Q4 results top estimates even as sales continue to decline

by Yasin Ebrahim

Fourth-quarter earnings per share of $0.14 on revenue of $11.10 billion. Analysts polled by Investing.com anticipated EPS of $0.12 on revenue of $10.7B.

Despite the beat, sales fell 12% in Q4 from a year earlier, driven by 21% slump in sales in China.

In North America sales fell 11% to $4.7B, though that was less than bad than analyst had feared.

Source: investing.com

https://finance.yahoo.com/news/nike-q4- ... 50119.html

[winston]

vested

Nike reported sharply lower quarterly profits on Thursday, but signalled it was past the worst stage of a corporate retooling as it implements “surgical” US price increases to defray tariff costs.

The Oregon-based sportswear company, beset with oversupply of merchandise that fell flat with consumers, reported profits of US$211 million in its fiscal fourth quarter, down 86 per cent from the year-ago period.

Revenues fell 12 per cent to US$11.1 billion, with the steepest declines in Nike’s Greater China region.

Source: Phillips