Latest news with #Gap
Yahoo
3 hours ago
- Business
- Yahoo
Down 65%, Should You Buy Nike Stock?
Nike made some missteps, including cutting out wholesale partnerships. The current challenging environment isn't helping, and sales are declining. That leaves Nike stock trading at a discount to its three-year average. These 10 stocks could mint the next wave of millionaires › Nike (NYSE: NKE) is the largest activewear company in the world, by far, and the largest of any kind of apparel company in the U.S. However, it's going through some rough times, and the stock is 65% off its all-time high. This could look like a value trap, but if you're looking for a value stock or reliable passive income, and you have the time to wait out the recovery, Nike stock could fit the bill. Here's why. Nike has nearly $48 billion in trailing 12-month revenue, making it larger than all of its major activewear competitors combined. It's also larger than other major U.S. apparel companies like Gap, American Eagle, and Levi Strauss. It has an unbeatable brand, with the highest brand value in the world at more than $71 billion, according to Statista. That has clear implications for its overall health despite recent setbacks. Sales have been declining over the past few years after a number of missteps. It made a major pivot to focus on its direct-to-consumer channels, cutting out long-held wholesale relationships, and the timing was wrong as people cut back on discretionary spending. In good times, Nike can count on its relationships with its loyal customers across demographics to power higher sales. These days, the majority of that customer group can't buy premium, and the more affluent shoppers are trying new brands like On Holding. It has also lost out to brands focused on performance, like Berkshire Hathaway's Brooks and Deckers Brands' Hoka. Nike brought back former executive Elliott Hill to lead the company in a turnaround last year, but it's going to take some time to get out of this rut. Not only does it need to redo its strategy, but the external environment is still unfavorable to premium spending. In the fiscal 2025 third quarter (ended Feb. 28), sales were down 7% from the prior year on a currency neutral basis. Direct-to-consumer sales were worse than the total with a 10% decrease, but Nike's been rebuilding its wholesale partnerships, and wholesale was down 4%. That's worse for margins, though, and there were other factors sending them down. Gross margin narrowed 3.3 percentage points from last year to 41.5% in Q3. Part of that came from discounting, higher costs, and missing inventory as the company scraps some models and replaces them with new designs that it hopes will revitalize the brand. With its size and brand power, it doesn't make sense to give up on Nike, and the market is enthusiastic about Hill's chances for success. Despite its declines, Nike remains the industry leader. It's especially resonant with younger shoppers, and it topped Piper Sandler's annual Taking Stock With Kids survey as the favorite footwear brand again this year. The company is already in the throes of a major strategy shift. It's leaning into sports, with a focus on performance lines, and it's launching new products weekly to keep the brand in shoppers' minds and keep them buying. It's moving away from legacy products and innovating, deepening its brand storytelling, and releasing a greater variety to meet demand across its customer base. Nike is also reigniting its Wholesale partnerships and redoing its digital channels to bring customers back, starting with paring down promotional activity. Hill noted that in January and February, promotional days in U.S. digital channels went from 30 last year to zero this year. He said that in the third quarter, Nike met its expectations, and that this reinforced his thinking about how Nike needs to change. The change isn't going to happen overnight, or even in a few quarters. Management explained that while it tightens the Nike Direct marketplace and shifts promotional activity to its factory stores, it expects traffic to decline by double digits before growing again. Shifting back to premium pricing will also concentrate its buyers. Some legacy items will be out of stock while it brings out newer styles. There's definitely risk in investing in a company that's on the decline, but that's often where the greatest opportunities lie. Nike is less risky than other turnaround plays because it's still at the top of its industry. Nike stock won't be the right choice for every investor, but it looks like a good play for the value investor or dividend investor. It's trading at a price-to-earnings (P/E) ratio of 21, well below its three-year average of 28, and the dividend yields 2.5% at the current price. If you're looking for solid passive income and have a long time horizon, Nike could be the right stock for you. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $377,293!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $37,319!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $659,171!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join , and there may not be another chance like this anytime soon.*Stock Advisor returns as of June 9, 2025 Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway, Deckers Outdoor, and Nike. The Motley Fool recommends American Eagle Outfitters and On Holding. The Motley Fool has a disclosure policy. Down 65%, Should You Buy Nike Stock? was originally published by The Motley Fool 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
%3Amax_bytes(150000)%3Astrip_icc()%2Ftl-breezy-linen-clothing-tout-1d36538841834e289279b86838f47345.jpg&w=3840&q=100)
Travel + Leisure
a day ago
- Lifestyle
- Travel + Leisure
40 Best Breezy Linen Clothing Finds to Stay Cool This Summer—J.Crew, Quince, Gap, and More Are Up to 65% Off
Rejoice: It's officially linen season! The breezy fabric is one of my favorite fashion hacks for warm weather. It's as comfy as pajamas, with an elevated appearance that can suit any occasion. That's why it's a go-to style for every summer vacation. If your summer wardrobe needs a refresh, consider adding airy linen pieces to your closet. I found the most stylish linen pants, shorts, summer dresses, and more. Keep reading to shop the 40 best linen clothing finds from Quince, Gap, and more top retailers—up to 65 percent off. Linen pants are timeless, so if you invest in a quality pair, they'll be a go-to style for near-countless vacations. Whether you prefer flowy pants, pleated trousers, or a cropped pair, the following linen styles will keep you comfy and stylish all summer long. I've found some of the most stylish shorts on the market, all in breathable linen fabrics that will help you beat the heat. Shop nautical striped shorts, Abercrombie's mid-rise mini pair, and Everlane's work-ready pleated style—plus even more covetable pieces from $16. It doesn't get breezier than a linen dress. The following mini, midi, and maxi styles are perfect for hot summer days. If you're searching for a sophisticated option for dressier occasions, check out the Madewell Scoopneck Sleeveless Midi Dress. Prefer a beachier look? The Abercrombie & Fitch V-neck Linen-blend Mini Dress is a great option. For a dress that can do it all, check out the now-$60 Linen Utility Shirtdress. Plus, shop even more summery dresses below. When it comes to linen shirts, the possibilities are endless. We've found nearly every silhouette, including flutter-sleeve blouses, cropped tanks, button-down shirts, and more. Plus, shop my personal favorite, the Gap Linen Tie-front Shirt, for under $40 today. These linen skirts can be dressed up or down, so they're versatile enough to earn a spot in your travel capsule wardrobe. Shop colorful options like the Gap Linen-blend Mini Skort and patterned Abercrombie & Fitch Mid-rise Linen-blend Maxi Skirt, plus neutral staples like the Gap Linen-blend Midi Skirt and Open Edit Linen-blend Wrap Skort. These top styles include skorts, mini skorts, and maxi styles starting at $10. Love a great deal? Sign up for our T+L Recommends newsletter and we'll send you our favorite travel products each week.
Business Insider
2 days ago
- Entertainment
- Business Insider
Gap's CEO: We're done bombarding you with promotions
This week, the world's top leaders in advertising and marketing have been on the coast of France at the Cannes Lions festival to talk about all things brand strategy. There, the CEO of an iconic American company took to the mic to discuss why his company is doing less promotions as it tries to revitalize its image and reputation to consumers. Richard Dickson, the chief executive officer of Gap Inc. — which owns its namesake company, plus retailers Banana Republic, Old Navy, and Athleta — was open about the company's past blunders in a conversation with the Wall Street Journal. "This is a brand that, through its narrative, changed culture and/or shaped culture," he said. "Somewhere along the way, we lost the art of that brand-merchant storytelling and became a retailer that sold stuff. So we had to go in and edit." Here's what Dickson said about what the retailer and its subsidiary brands got wrong in the past — and how he's "reinvigorating" them. Dickson joined as CEO in 2023, after more than 20 years at another iconic brand, toymaker Mattel. There, as BI previously reported, he was credited with reviving the Barbie franchise. He came on as Gap had been facing years of underperformance and brand identity issues as other fast fashion retailers gained steam. But the appeal he saw when joining as CEO nearly two years ago, he said, was that "everybody wants Gap to win." "There's not haters out there of Gap. There's, to some extent, what happened? Where did it go? I used to, if you will, shop at Gap," he said. "These are fertile ground ingredients for any marketing/business narrative." Gap has been around for more than 50 years, and had its heyday in late 90s with iconic commercials like the Khaki Swing video, which he cited in the conversation with the Journal. "The brand started and sort of personified itself by celebrating big product ideas into major campaigns that were about what we'll call fashion-tainment," he said. Now, the company is getting back to that. Recent examples include pop singer Troye Sivan's baggy jeans campaign with Gap, plus Banana Republic's recent partnership with actor Patrick Schwarzenegger, who gained popularity in the hit TV show "The White Lotus." But even though the brand is attempting to transform, it won't be spending more on marketing, said Dickson — the focus will be more on what they spend on and how those strategies come across to consumers. "Today, you don't need to spend more, you need to be more effective in the stories that you're trying to tell." Since he joined in 2023, he's also been trying to dial back Gap's infamous and constant "percentage off" promos. "If you had gone into a Gap store a year ago, or Old Navy, you were to some extent bombarded," he said. "It was almost unbelievable to the extent that even internally, we would pull up our sites and I would say, what are we selling?" "When you go into stores and you see a sign on every single fixture, that's not an experience that's gonna be appealing. So our signing system has gotten a lot more refined. Our sites have become a lot more precise." Although their promotional cadence is not changing, the narrative and how they approach them is. "We love promotions. We love exciting the consumer with great price and great value and great style," he said. "But our communication and how we promote is a much more refined and directed narrative." He's said they've already started to see greater consumer resilience and loyalty as a result. "Each brand is in a different stage of what we'll call revitalization," he said about Gap Inc.'s portfolio. "But the formula is the same: cultural relevance, great product, great execution, and great experience."
Axios
2 days ago
- Entertainment
- Axios
Big brands go small to stand out, says TikTok sensation GirlBossTown
In an era of hyper-personalized feeds and hyper-engaged micro-communities, consumer brands that go niche will break through, Robyn Delmonte, creator and creative director behind GirlBossTown, told Axios at an event alongside Cannes Lions. Why it matters: The approach bucks decades of conventional wisdom that scale and mass appeal are the fastest route to growth. The big picture: 88% of Americans engage in niche communities, according to research from strategic communications firm Confidant and marketing insights platform Vytal. 45% of Gen Z, millennials and Gen X say they feel more connected to niche communities than mainstream culture. Roughly half say they gravitate toward brands that cater to specific interests — rising to 53% among Gen Z. 51% say feeling part of a brand's community is important and 53% are more likely to try a brand recommended within a community. Catching up: Delmonte built a following by merging pop culture commentary with marketing critiques and partnership predictions. She now advises major brands to embrace this niche-first ethos by listening to their active audience and giving them creative leeway to develop their own unfiltered content. "I feel like when these micro-creators fall into niche, or, as Gen Z calls it, internet lore, watching brands be able to tap into that and replicate it in a formula that becomes a big campaign and turn something that's so niche into something that's mainstream, is my favorite thing that I see brands do," she said. What she'ssaying: Delmonte offers the example of Gap recently partnering with a micro-creator who reviews hoodie sweatshirts. "They found a micro-creator who her entire content was just trying on hoodies and finding which one 'hoodied' the best," Delmonte says. "And Gap worked with her to design their newest hoodie and utilized her niche audience. "This is what legacy brands should be doing. But to find those niches and to find those micro-creators to work with as brands, you need to be a consumer of their internet to do so." Plus, engaging with niche trends or "internet lore" on social media offers a low-cost, high-reward experience. "There's a time to spend big and go timeless," she says. "But there's also power in jumping on a trend with no budget at all — because a lot of those trends are coming from creators on their couches, with green screens." Yes, but: To do this effectively, the brand marketers and communicators must be social media savvy themselves, she says. "I meet with brands that spend massive budgets on campaigns, but no one in the room even uses social media," Delmonte says. "How can you understand your audience if you're not part of it?" What to watch: Audiences also want an inside look at how their favorite brands operate, she says.
Yahoo
3 days ago
- Business
- Yahoo
Gap CEO says tariffs, cautious consumers are manageable for business despite profit warning
Gap, Old Navy, and Banana Republic shoppers still appear to be shelling out for work shirts and gym clothes in spite of rising oil prices, tariff uncertainties, and Middle East tensions. "We have gone through 55 years of various different challenges that have come our way, tariffs are no different now. They are challenging, and what makes it more challenging is a bit of the uncertainty and changes. But it's up to businesses like ours to show resilience and agility," Gap (GAP) CEO Richard Dickson told Yahoo Finance at the Cannes Lions International Festival of Creativity (watch above). Dickson's comments come in the wake of a lackluster retail sales report on Tuesday. The Commerce Department said that US retail sales declined more than expected in May. Sales for April were revised lower. "We haven't seen a real difference right now in our business," Dickson said of consumer habits. But Gap's stock is down 12% in 2025 as investors fret about retail amid the Trump administration's tariff war. Shares plunged 20% on May 30 after the company warned that tariffs would inflate its costs and eat into profits. Read more: What Trump's tariffs mean for the economy and your wallet If tariffs stay in place at current levels, it could cost Gap $250 million to $300 million this year. Its full-year guidance does not include this impact, Gap said. The company added it could mitigate about half of the tariff impact, bringing a potential hit to operating income totaling $100 million to $150 million. Some analysts estimated the impact could equate to a $0.25 hit to earnings per share for the year. Gap said it has diversified away from China, sourcing less than 3% exiting the year compared to less than 10% in 2024. By the end of 2026, no single country should account for more than 25%. The company is also doubling its vendor sourcing for American-grown cotton in 2026. Dickson said the uncertain macro conditions could present an opportunity for Gap to gain market share. "We are essentially a value proposition that has style and relevance that today could be more important than ever. As luxury becomes more challenging, that consumer is going to start to look at value propositions with brands that matter," he added. The former COO of toymaker Mattel (MAT) has served as Gap's CEO since August 2023. In the last two years, he's been leading the retailer toward a surprising turnaround after years of epic stumbles, from terrible product fits to misguided styles. Dickson has been a constant in Gap, Banana Republic, and Old Navy stores. He has diagnosed habitual issues (clunky website, less-than-cool products, supply chain inefficiencies) that had long plagued the company's performance and stock price. He also made several key hires, such as celebrity fashion designer Zac Posen as creative director, which has resulted in red carpet and fashion magazine appearances for Gap clothing. At the same time, the company has continued to cut costs and improve its balance sheet. Shares of Gap are up 105% since Dickson took over, outperforming the 36% advance for the S&P 500 (^GSPC). Read more from Yahoo Finance's coverage of the Cannes Lions International Festival of Creativity Time CEO on embracing AI: It's better to have a seat at the table X CEO Linda Yaccarino rejects claims of advertiser pressure, touts X Money, other progress under Musk Marriott CEO on summer travel demand: We haven't seen any softness AEW CEO Tony Khan: The breakup of Warner Bros. Discovery won't affect our business Brian Sozzi is Yahoo Finance's Executive Editor and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email Click here for all of the latest retail stock news and events to better inform your investing strategy Sign in to access your portfolio
