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

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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