Latest news with #NKE
Yahoo
2 days ago
- Business
- Yahoo
Nike stock target cut at Needham on delayed recovery
-- Needham analysts trimmed their price target on Nike (NYSE:NKE) stock to $66 from $75 amid ongoing weakness in brand momentum and a slower-than-expected path to recovery. The brokerage maintained its Buy rating but lowered estimates for fiscal years 2026 and 2027, projecting earnings per share (EPS) of $1.52 and $2.15, respectively, down from previous estimates of $1.75 and $2.42. The lowered price target reflects a valuation of approximately 30 times projected EPS for fiscal 2027 (FY27), consistent with the firm's revised outlook. 'We've been waiting for the Nike turnaround, and it looks like we'll be waiting longer,' Needham analyst Tom Nikic said in a Wednesday note, pointing to continued softness in demand for once-scarce models like Jordans and Dunks, which are now being discounted on resale platforms. The analyst noted that just 5 of 11 Jordan and Dunk launches in May were trading at a premium, signaling waning appeal. Needham's report highlights deteriorating online search trends and ongoing double-digit declines in U.S. direct-to-consumer credit card transactions. These factors, combined with a heavier reliance on wholesale distribution, are expected to weigh on margins. Nikic warned that consensus estimates for fiscal 2026 remain too high, particularly around gross margin expectations. For the first quarter of FY26, the analyst anticipates ~500bps of gross margin erosion. For the full year, he projects a 200-250 basis point gross margin headwind tied to tariffs alone, estimating an additional $1 billion in annual costs of goods sold. "This presents a ~$0.50 headwind to EPS," Nikic said, though some of the impact could be offset through pricing and supplier concessions. Discounting and unfavorable channel mix are projected to persist into the first half of the fiscal year, further weighing on profitability. For the upcoming fourth-quarter earnings on June 26, Needham forecasts modest upside to EPS due to Nike's historically conservative guidance. Still, the broker believes risk-reward is skewed negatively into the print, given broader challenges. 'Nike still faces headwinds from rationalizing over-supplied product franchises (Jordan, Dunk), brand heat still appears to be lukewarm, and they now have tariffs to contend with as well,' Nikic emphasized. Despite near-term concerns, the analyst continues to back the long-term potential of new CEO Elliott Hill's strategy. Related articles Nike stock target cut at Needham on delayed recovery Apple supplier Jabil upgraded at Argus after strong results, raised outlook Keyera upgraded to Outperform on Plains deal, strategic expansion
Forbes
2 days ago
- Business
- Forbes
Nike Reports After The Close 6/26 — Options Expire The Next Day
According to the Nike next earnings date is projected to be 6/26 after the close, with earnings estimates of $0.11/share on $10.70 Billion of revenue. Looking back, the recent Nike earnings history looks like this: NKE The company has an impressive long-term earnings per share chart: NKE And with equally impressive revenue growth: NKE But earnings reports can often uniquely bring abrupt volatility to a stock, in either direction, as investors digest the fundamental details. And that volatility can be a stock options trader's dream come true — so such traders will be interested to know that Nike has options available that expire June 27th. Visit to investigate the NKE options chain on either the puts side or the call side, for further ideas. Nike's current dividend yield is 2.67%, with the following Nike Dividend History. Also, dividend investors should check out the following ideas for Top Dividends and Monthly Dividend Paying Stocks.
Miami Herald
3 days ago
- Business
- Miami Herald
Analysts reboot Nike stock price targets ahead of earnings
If the shoe fits, Nike (NKE) 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. Bloomberg/Getty Images 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 hearTarget expands same-day delivery to 100s of retailersWalmart 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 results. Related: Nike's house is not in order, and customers may pay the price Morgan 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 report. Related: Fund-management veteran skips emotion in investment strategy The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
4 days ago
- Business
- Yahoo
Why Nike (NKE) Outpaced the Stock Market Today
Nike (NKE) closed the most recent trading day at $61.90, moving +2.26% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.94%. On the other hand, the Dow registered a gain of 0.75%, and the technology-centric Nasdaq increased by 1.52%. Coming into today, shares of the athletic apparel maker had lost 4.09% in the past month. In that same time, the Consumer Discretionary sector gained 0.66%, while the S&P 500 gained 1.67%. The investment community will be closely monitoring the performance of Nike in its forthcoming earnings report. The company is scheduled to release its earnings on June 26, 2025. On that day, Nike is projected to report earnings of $0.11 per share, which would represent a year-over-year decline of 89.11%. Our most recent consensus estimate is calling for quarterly revenue of $10.67 billion, down 15.35% from the year-ago period. For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.13 per share and a revenue of $45.88 billion, signifying shifts of -46.08% and 0%, respectively, from the last year. Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Nike. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability. Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system. The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.74% lower. Nike presently features a Zacks Rank of #4 (Sell). Valuation is also important, so investors should note that Nike has a Forward P/E ratio of 31.39 right now. For comparison, its industry has an average Forward P/E of 16.46, which means Nike is trading at a premium to the group. Also, we should mention that NKE has a PEG ratio of 2.09. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. NKE's industry had an average PEG ratio of 1.08 as of yesterday's close. The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 215, finds itself in the bottom 13% echelons of all 250+ industries. The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Remember to apply to follow these and more stock-moving metrics during the upcoming trading sessions. 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 This article originally published on Zacks Investment Research ( Zacks Investment Research 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
7 days ago
- Business
- Yahoo
Nike Poised for In-Line Fourth-Quarter Earnings With Focus on Fiscal 2026 Outlook, BofA Says
Nike (NKE) is likely to report fiscal fourth-quarter earnings that match Wall Street views, though t 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
