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by winston » Thu Sep 30, 2021 4:19 pm
Sell Nike at market, for whatever you can get for it. The company is in reasonably strong financial shape, and I think it has the power under the hood to weather the supply chain disruptions and ride out the storm – but don’t stay along for the ride.
Instead, revisit this stock in mid-2022, when, maybe, it’ll be time to get back in.
by winston » Fri Sep 30, 2022 8:00 am
Overall, inventories surged 44 per cent to US$9.7 billion at the end of the first quarter, while it soared 65 per cent in its biggest market of North America.
Nike expects full-year gross margins to decline between 200 and 250 basis points.
Half its revenue from outside North America, doubled its estimates for a hit to annual revenue from the soaring dollar to US$4 billion.
First-quarter gross margins to 44.3 per cent. Analysts had expected a gross margin of 45.4 per cent.
Nike’s net income fell 20 per cent to US$1.47 billion, or 93 US cents per share, in the 3 months ended Aug 31.
by behappyalways » Sun Oct 02, 2022 9:54 pm
by winston » Fri Dec 22, 2023 7:36 am
by winston » Wed Dec 27, 2023 3:34 pm
FQ3 revenue is expected to come in a touch on the negative side on a YoY basis with FQ4 revenue up by only low single-digits, both below Street expectations with some supply chain snags and macro headwinds, especially in China and EMEA, cited as the causes for the bleak forecast.
The company said that over the next three years, it plans to cut costs by about $2 billion.
Margins came in better than anticipated (+170bps compared to the guide of +100bps), while the analyst is also encouraged by NKE’s solid results during the early holiday season, as management highlighted nearly 10% growth and robust results during major holiday moments (Black Friday/Singles Day/etc).
by winston » Tue Jan 16, 2024 10:55 am
There are a few encouraging operating trends lifting the business, too, including slim inventory holdings and a rising profit margin.
Nike announced plans to cut $2 billion from its expenses over the next three years, which could help its operating profit margin approach the highs that investors saw during the pandemic of over 15% of sales compared to the current level of 12%.
You can own shares for about 3 times annual sales, which is near the lowest valuation investors have seen in several years.
by winston » Mon Jan 29, 2024 6:26 pm
Nike reported revenue of $13.4 billion, which was up 0.5% year over year. This was the fourth straight quarter that sales growth decelerated.
More cautious consumer behavior around the world in an uneven macro environment.
Revenue in Greater China last quarter of $1.9 billion was 19% below what it was just three years earlier.
Nike shares trade at a price-to-earnings ratio of 29.8. That represents a 39% premium to the S&P 500. And it's slightly more expensive than a dominant tech business like Alphabet.
by winston » Thu Feb 01, 2024 8:03 am
Beginning February 5, the People’s Bank of China will allow banks to hold smaller cash reserves.
Also, reserve ratio requirements (RRR) for banks will be slashed by 50 basis points. That will release 1 trillion yuan ($139.80 billion) in long-term capital.
The central bank and the National Financial Regulatory Administration would soon publish measures to support loans for high-quality real-estate developers.
Nearly 13% of its total revenue from China.
Inventories for NKE were $8 billion as of November 30, 2023, down 14% compared to the previous year, reflecting a decrease in units.
by winston » Thu Feb 08, 2024 7:34 pm
by winston » Tue Feb 13, 2024 7:40 pm
Bulls believe it won't be long before the footwear giant returns to those highs with help from rebounding consumer spending and a continued shift toward direct-to-consumer sales. But Nike could also struggle to implement its turnaround plan, keeping pressure on the underperforming stock.
Growth will get worse
Retailers are still slashing footwear inventory and cutting prices due to muted customer traffic.
New launches in premium brands like Jordan are helping boost average selling prices.
Shares are priced at 30 times earnings and 3 times annual sales, or about half of Lululemon's valuation on these metrics.
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