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CNN
12 hours ago
- Business
- CNN
Nike delays the release of its new activewear line with Kim Kardashian
The eagerly anticipated collaboration between Kim Kardashian and Nike has delayed its launch. NikeSkims, which was announced in February for a spring release, is pushing back its launch date because of production delays, according to a source familiar with the situation. A new date hasn't been revealed. The collection is an extension of Kardashian's popular shapewear line and aimed at disrupting the 'global fitness and activewear industry with best-in-class innovation in service of all women athletes,' according to a previous press release. Few details about NikeSkims have been made available, including pricing and images. The webpage hasn't been updated since the original announcement. The Kardashian-backed collection with Skims is a first for Nike, which hasn't partnered with an outside company before to create a new brand. Instead, it has relied on acquisitions or tapping popular athletes (i.e. Michael Jordan) for apparel. Broadening the appeal of Nike is part of CEO Elliott Hill's plan to revive the troubled company, whose stock has dropped 20% this year. In recent years, the company has lost its competitive edge in the activewear category against Lululemon, Alo and even Old Navy. Nike recently announced hiked prices on some of its products, although it didn't mention higher US tariffs as the reason. The company said in a previous statement that 'we regularly evaluate our business and make pricing adjustments as part of our seasonal planning.' The company is also trying to recover from strategy mistakes. It is scaling back the supply of its classic sneaker lines Air Force 1 and Pegasus to juice demand in order to sell the sneakers at full prices. Nike also wants to push shoppers to buy higher-priced Air Max shoes designed for running. Nike (NKE) releases earnings next Thursday.
CNN
12 hours ago
- Business
- CNN
Nike delays the release of its new activewear line with Kim Kardashian
The eagerly anticipated collaboration between Kim Kardashian and Nike has delayed its launch. NikeSkims, which was announced in February for a spring release, is pushing back its launch date because of production delays, according to a source familiar with the situation. A new date hasn't been revealed. The collection is an extension of Kardashian's popular shapewear line and aimed at disrupting the 'global fitness and activewear industry with best-in-class innovation in service of all women athletes,' according to a previous press release. Few details about NikeSkims have been made available, including pricing and images. The webpage hasn't been updated since the original announcement. The Kardashian-backed collection with Skims is a first for Nike, which hasn't partnered with an outside company before to create a new brand. Instead, it has relied on acquisitions or tapping popular athletes (i.e. Michael Jordan) for apparel. Broadening the appeal of Nike is part of CEO Elliott Hill's plan to revive the troubled company, whose stock has dropped 20% this year. In recent years, the company has lost its competitive edge in the activewear category against Lululemon, Alo and even Old Navy. Nike recently announced hiked prices on some of its products, although it didn't mention higher US tariffs as the reason. The company said in a previous statement that 'we regularly evaluate our business and make pricing adjustments as part of our seasonal planning.' The company is also trying to recover from strategy mistakes. It is scaling back the supply of its classic sneaker lines Air Force 1 and Pegasus to juice demand in order to sell the sneakers at full prices. Nike also wants to push shoppers to buy higher-priced Air Max shoes designed for running. Nike (NKE) releases earnings next Thursday.
Time of India
a day ago
- Business
- Time of India
Nike delays launch of women's brand in partnership with Kim Kardashian's Skims
Nike 's launch of a new women's activewear brand in the U.S. through a partnership with Kim Kardashian-owned shapewear label Skims has been delayed, the Air Jordan maker's spokesperson told Reuters on Wednesday. The partnership, which was announced in February, is part of new CEO Elliott Hill's plan to turn the struggling company around and broaden its product offerings to compete with brands such as Roger Federer-backed On and Deckers' Hoka. Skims, which was launched in 2019, has seen growing demand for its premium bras, loungewear and shapewear. With anticipation high among stakeholders and consumers, the two sides have delayed the launch as they work to get the product right, the Nike spokesperson said. The delay was first reported by Bloomberg News. The new brand is set to be called NikeSKIMS, and is expected to include training apparel, footwear and accessories for women. The initial plan was to launch its first collection at some U.S. retail locations in the spring of this year, as well as on its website. It was to be available more widely in 2026. The partnership with Skims has been applauded by investors and analysts, who hope it will help Nike make up ground after falling behind in the women's activewear market , where Lululemon and Gap's Athleta have emerged as a winners.
CNBC
a day ago
- Business
- CNBC
Options traders are betting Nike makes a big move after earnings next week
Over the past decade, Nike (NKE) has experienced an average earnings-related stock price movement of approximately 6% in the week following its quarterly earnings release. The at-the-money June 27th $60 strike straddle is approximately $5.70 as I write this, or 9.5% of the current stock price. Why is the options market anticipating so much earnings-related volatility? Based on alternative data, sales trends, and inventory metrics, Nike faces a challenging near-term outlook as it approaches its fiscal Q4 2025 earnings report next week on June 26. The company is navigating a challenging consumer environment, intense competition, and macroeconomic headwinds, including, potentially, tariffs. "New" (he was actually a multi-decade executive at Nike, who recently returned) CEO Elliott Hill returned to Nike to execute a turnaround strategy ("Win Now") focused on innovation, wholesale partnerships, and brand repositioning. Alternative data metrics are sending conflicting signals. For example, Bloomberg Second Measure Observed Sales data declined 14.95% year-over-year (YoY) through May 31st, significantly worse than the industry average of a 7.9% decline. 's US Foot Traffic estimated visits rose 4.3% versus an industry average decline of 1.1%. tracks the locations of millions of mobile devices against known geographic locations, including retail stores. Anecdotally, Placer's results have tracked more closely than Bloomberg's to reported results in the handful of discretionary names I've been tracking recently. Similarweb's global web traffic visits declined 20.8%, compared to a 0.5% decline for the industry overall. This is a metric I have only recently started tracking, and I have no prior experience with it. Nike's recent quarters show persistent revenue declines, with Q3 2025 (ended February 28, 2025) reporting: Revenue : $11.3 billion, down 9% YoY (chart below). Nike Direct : $4.7 billion, down 12% YoY, driven by a 15% drop in digital sales and a 2% dip in store sales. Wholesale : $6.2 billion, down 7% YoY, with weakness in China and Europe offsetting U.S. growth. Regional Performance : China sales declined 17% year-over-year, a significant drag due to economic slowdown and concerns about job security. Europe also weakened, while North America showed pockets of strength in running and training categories. For Q4, Nike guided to a "mid-teens" revenue decline (likely 13–15%), worse than analyst expectations of an 11.4% drop to $11.07 billion. Key drivers include: Weak Holiday Season : Q3 saw strong December demand but "double-digit declines" in January and February, suggesting Q4 (March–May) started poorly. Category Performance : Running and training categories experienced growth in Q3, driven by new launches (e.g., Pegasus Premium, Vomero 18). However, this was offset by double-digit declines in Sportswear and Jordan Brand, particularly in classic footwear such as the Air Force 1 and Dunk. Competition : Rivals like On Running and Hoka (owned by Deckers) are gaining market share with innovative, trendier products, eroding Nike's dominance in the running category. Summary Prognosis : Nike's Q4 is expected to be challenging, with revenues likely falling 13%–15% year-over-year (YoY) to $10.6–10.8 billion, driven by weak consumer spending, China's slowdown, and declines in digital sales. Early progress under CEO Elliott Hill (new products, wholesale ties) may not offset macro headwinds. Gross Margins : Expect a 400–500 basis point drop to 37%–38%, hit by markdowns to clear $7.5–8 billion in inventory, tariff costs (China/Mexico imports), and higher product costs. Long-term margin recovery depends on full-price DTC and innovation. (1 basis point equals 0.01%) Revenue Outlook : Decline, not stagnation, is the base case, with a mid-teens drop guided. Upside hinges on new product traction and wholesale gains. Valuation : Fair value of $80–$85 (P/E 38–40x, EV/EBITDA 22x), supported by comps (Adidas, Lululemon). Upside to $90–$100 if turnaround accelerates; downside to $50–$60 if challenges persist. Trade A diagonal strangle swap seeks to capitalize on elevated near-term options prices with defined risk. The idea here is that a lot of bad news is already baked into this cake. The following trade can accommodate a post-earnings move of more than 12.5% in either direction and likely still see profits without risking substantial losses in the event the stock is little changed post-earnings. Buy NKE Oct. 17 $50 put Buy NKE Oct 17 $70 call Sell NKE July 18 $67.50 call Sell NKE July 18 $52.50 put DISCLOSURES: (None) All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. 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Yahoo
2 days ago
- Business
- Yahoo
Analysts reboot Nike stock price targets ahead of earnings
Analysts reboot Nike stock price targets ahead of earnings originally appeared on TheStreet. If the shoe fits, Nike () wants you to wear it. The world's biggest shoe company is reportedly releasing a sneaker-loafer called the Nike Air Max Phenomena, which is brought to you by the company's in-house Serena Williams Design Crew. 💵💰Don't miss the move: Subscribe to TheStreet's free daily newsletter 💰 Sneaker-loafers, or snoafers, are gaining popularity in response to a rising demand for versatile footwear that bridges the gap between casual and formal wear. Hoka, Mizuno and Converse are among the companies that have created their own version of the snoafer. "The loafer trend should continue as long as brands can stay creative with model and material variations,' Tarek Hassan, founder and chief executive of Concepts, told WWD in March. 'I think we are approaching its peak in trend and growth but will continue to live on as a unique offering for consumers.' Sneaker-loafers apparently come under the "love-it-or-hate-it" umbrella, with some consumers viewing them unconventional or even ugly. The Nike Air Max Phenomena does not have an official release date, but you can bet the Beaverton, Ore., company is looking for a whole lotta love for its new snoafer. Nike has been working on a turnaround dubbed "Win Now," CEO Elliott Hill's plan to revitalize the company's culture, brand and product portfolio. In March, the company beat Wall Street's fiscal-third-quarter earnings forecasts, but revenue was down 9%. More Retail Stocks: Halloween retailer sounds warning consumers need to hear Target expands same-day delivery to 100s of retailers Walmart makes surprise cuts as it looks at tariff price hikes 'The team is moving aggressively to reignite brand momentum through sport and stabilize our business,' Matthew Friend, executive vice president and chief financial officer, told analysts, adding that the results reflected headwinds from the 'Win Now' strategy. "We are also navigating through several external factors that create uncertainty in the current operating environment, including geopolitical dynamics, new tariffs, volatile foreign exchange rates, and tax regulations, as well as the impact of this uncertainty and other macro factors on consumer confidence," he said. Friend added that Nike expected fiscal-fourth-quarter revenue "to be down in the mid-teens [percent] range, albeit at the low end." Consultants McKinsey said last month that most consumers the firm surveyed had either already changed their spending habits or expected to change them soon in response to the Trump administration's tariff announcements. That holds even if the tariffs' effects have yet to hit store shelves, the firm said. Markets have been on a wild ride since President Donald Trump's April 2 reveal of reciprocal tariffs. "We are focused on what we can control," Friend said. "And for Nike at this moment, serving athletes with new-product innovation and reigniting brand momentum is what matters most." "Our collective experience as well as the early signals we are seeing with consumers gives us confidence in the path ahead," he added. The company's shares are down 17.3% in 2025 and are off 36% from a year ago. Nike is scheduled to report for its Q4 on June 26 and some investment firms have issued research reports ahead of the Stanley lowered its price target on Nike to $61 from $70 and affirmed an equal-weight rating on the shares, according to The Fly. The investment firm sees room for upside in Q4 earnings but cautions that Wall Street's fiscal 2026 earnings consensus for Nike is "too high." Those too-high estimates plus a lack of positive demand and innovation feedback from channel checks leaves Morgan Stanley "slightly more negative on our equal-weight rating," though "seemingly bearish sentiment may mean any bright spots are rewarded." Citi analyst Paul Lejuez reiterated a neutral rating and $57 price target on Nike, Street Insider reported. The analyst said he expected the company to beat earnings-per-share estimates for the fiscal Q4, driven by slightly stronger sales and lower selling, general and administrative expense. Given macroeconomic uncertainty and Nike's complex global brand turnaround, Lejuez said he did not anticipate management to issue guidance for fiscal 2026. For the fiscal 2026 first quarter the analyst expects the company to estimate sales down by high-single or low-double-digit percent and earnings of around 10 cents a share, compared with the consensus estimate of 39 cents. The results, he said, would be driven by weaker gross margin and higher SG&A vs the consensus. The analyst expects management to point to the fiscal 2026 second half for when it expects headwinds from the classic franchise to abate, with a target of clearing inventory across the global marketplace. But the timing of Nike achieving enough innovation at scale across performance and lifestyle to drive sustainable revenue growth is still uncertain and will be a focus of the call, Lejuez said. Any sign that Nike can return to revenue growth late in fiscal 2026 would be a positive for the shares given the current negative sentiment, said Lejuez, who sees a balanced risk-reward opportunity into the fiscal-Q4 reboot Nike stock price targets ahead of earnings first appeared on TheStreet on Jun 17, 2025 This story was originally reported by TheStreet on Jun 17, 2025, where it first appeared. 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
