Nike Inc

UBS cut its price target on Nike to $42 from $48, maintaining a Neutral rating as analyst Jay Sole said channel checks show the company's global sales growth trend has worsened over the past three months. UBS expects Nike to miss fiscal first-quarter 2027 earnings estimates by about 5 cents per share and to guide fiscal second-quarter EPS to roughly 31 cents to 43 cents, well below the Street's 53-cent estimate. The firm also sees a risk that Nike uses the upcoming earnings report to lower fiscal 2027 expectations ahead of its November investor day, and it believes investors remain too optimistic about the magnitude of potential earnings revisions. Options markets are pricing in an approximately 8% move around the event, compared with Nike's historical average move of about 6.7%. Nike recently traded around $35.78, just above its 52-week low of $35.76, and the stock has fallen roughly 49% over the past year, with Morgan Stanley, BMO and UBS all highlighting downside risks.

Nike shareholders rejected a proposal urging greater transparency on how the company plans to meet its 2030 emissions-reduction targets, despite support from Norway's sovereign wealth fund, Nike's 11th-largest shareholder. The board had urged a "no" vote, arguing management is "best positioned to determine the targets and related disclosures that are appropriate." Shareholders separately approved the company's executive compensation proposal, including more than $36 million in total compensation for CEO Elliott Hill for fiscal 2026, a vote that had faced opposition from Norway's wealth fund and major proxy advisers. Nike reported an 11% reduction in supply-chain emissions from its 2015 baseline in fiscal 2024, while its 2030 targets call for a 65% reduction in operational emissions and a 30% reduction across its supply chain. Shares have fallen around 40% in 2026 as the company deals with slumping sales and skepticism over Hill's turnaround nearly two years into his tenure.

S&P Dow Jones Indices is removing Nike from the S&P 100 after an 18-year streak, effective Sept. 21, as the sportswear maker's shares have fallen nearly 80% from a 2021 peak of about $179 to a fresh 52-week low of $36.85 this year, a market-cap loss of over $200 billion. Nike will be replaced in the index of the leading 100 U.S. companies by AI-linked names including SanDisk, Palo Alto Networks, Dell Technologies and Arista Networks, alongside fellow departures Colgate-Palmolive, Honeywell Aerospace and Simon Property Group, though the Beaverton-based brand remains in the S&P 500. In its fiscal year 2026 fourth-quarter report, Nike Direct revenue fell 8% on a currency-neutral basis, with Nike Brand Digital down 12% and Nike-owned stores down 4%, while direct-to-consumer revenue slid from a peak of about $21 billion in 2024 to $17.7 billion in 2026. Greater China sales fell 13% year over year for fiscal 2026 even as the country's athletic apparel market grew 51% between 2020 and 2025 to $85 billion last year, and Converse sales plunged 32% over the past 12 months on a currency-neutral basis. CEO Elliott Hill told investors the company remains encouraged by progress in performance product and is focused on consistent execution, improved profitability and scaling its wins, while Needham analyst Tom Nikic sees the stock climbing to $75 if the turnaround succeeds.

S&P Dow Jones Indices announced that Bloom Energy, Everpure, and Illumina will join the S&P 500 before trading begins Monday, September 21, replacing Molson Coors Beverage, Trade Desk, and Builders FirstSource. Bloom Energy, the largest incoming company with a market capitalization of $74 billion, supplies fuel-cell systems for data centers and industrial facilities, offering exposure to AI-driven power demand. Everpure provides data-storage systems and software, while Illumina makes gene-sequencing tools. All three stocks have gained at least 40% in 2026. Index funds and ETFs tracking the benchmark must buy the new constituents and sell the departing companies, potentially boosting volume and price moves near the effective date. A parallel S&P 100 reshuffle will add Dell, Palo Alto Networks, Arista Networks, and SanDisk, while removing Honeywell Aerospace, Nike, Simon Property Group, and Colgate-Palmolive.

NIKE is undertaking an inventory cleanup to clear older and slower-moving products, aiming to create a healthier marketplace and improve profitability over time. The company is tightening inventory purchases, reducing future sell-in, and adjusting wholesale order books in response to weak demand in Sportswear and Jordan Streetwear. In EMEA, NIKE sharply reduced promotional activity, resulting in a more than 50% decline in its off-price business and a 15-point improvement in full-price realization. NIKE anticipates fiscal 2027 revenues to decline in the low- to mid-single-digit range as it prioritizes healthier inventory levels, but expects supply-chain and cost actions taken in fiscal 2026 to contribute to margin expansion in fiscal 2027. Shares of NIKE have lost 35.4% in the past six months, and the company trades at a forward price-to-earnings ratio of 20.64X, compared with the industry's average of 18.38X.

DICK'S Sporting Goods' second-quarter report, which missed Wall Street estimates and included an unexpected forecast cut, sent its shares plunging up to 31% and dragged NIKE, Lululemon, and On Holding down with it. The core DICK'S business showed strength with net sales up 53% year-over-year to $5.59 billion, partly boosted by the 2026 FIFA World Cup and the addition of Foot Locker, while legacy comparable sales grew 4.9%. However, the Foot Locker segment, which DICK'S is integrating, saw pro forma comparable sales decrease 3.6%, and management cited a more promotional athletic footwear market that pressured margins. As a result, DICK'S reduced its full-year operating income guidance from $1.69-1.81 billion to $1.45-1.55 billion and cut adjusted EPS projection to $11.00-12.00, about 19% below Wall Street's $14.20 estimate. Since Foot Locker is a key wholesale partner for NIKE, the news is seen as a real-time report on NIKE's product demand, and NIKE shares fell nearly 3%, adding to a decline of over 75% from its late-2021 high. Institutional positioning diverged, with hedge fund ownership in DICK'S rising from 48 to 52 funds, while NIKE saw a drop from 71 to 56 funds.

Dick's Sporting Goods' stock crash reveals a major problem for struggling Nike, as the retailer's weak earnings and outlook suggest Nike's turnaround under CEO Elliott Hill may be delayed. Dick's executive chairman Ed Stack cited a "footwear hangover" from legacy silhouettes, with new styles from Nike, Adidas, On, and HOKA driving a reset. Dick's second-quarter adjusted EPS of $3.53 missed estimates of $3.76, and the company cut its full-year EPS outlook to $10.94-$11.94 from $13.27-$14.27, sending shares down 30.7% on Tuesday. Nike's own fiscal fourth-quarter revenue fell 1% to $11 billion, with a projected low-to-mid single-digit decline in the first quarter, and its stock has dropped 38% this year. Jefferies analyst Jonathan Matuszewski noted a "domino effect of pricing pressure" from Nike's markdowns, while Evercore ISI's Michael Binetti sees no reason to expand Nike's P/E ratio from 22 times FY27 consensus EPS.

Dick's Sporting Goods Inc. lowered its full-year outlook amid weakness at its recently acquired Foot Locker unit, overshadowing sales gains during the World Cup. The company now expects net sales to be in a range of $21.9 billion to $22.2 billion in the current fiscal year, down from its previous forecast. The change in outlook was driven by a drop in sales at Foot Locker, the sneaker chain it bought last year for $2.4 billion. Dick's shares sank as much as 12% in premarket trading, while Nike, a major supplier to Dick's and Foot Locker, saw its stock decline as much as 2% premarket. Chairman Ed Stack said conditions across portions of the athletic footwear and apparel marketplace became increasingly promotional, and the company took action to remain competitively priced.

Nike is facing a major business storm after its share price fell around 78% from its late 2021 peak and hit a 12-year low earlier this week, wiping more than 200 billion dollars off its market value before rebounding 2.47% on Wednesday, August 19. Elliott Hill, Nike's CEO, admitted in an internal meeting that he was tired of talking about fixing problems and could not pretend everything was going well. Revenue from Greater China, which includes China, Hong Kong, Macau and Taiwan, fell 12% in the latest quarter, while JPMorgan downgraded Nike from Neutral to Underweight, warning that the Win Now plan would keep pressuring earnings through fiscal 2028. Bernstein maintained its Buy rating with a 68 dollar price target, implying upside of about 70% from current levels.

Nike shares fell 3% to $39.47 on Monday, printing a fresh 52-week low of $39.42 and leaving the stock 51% below its 52-week high of $80.16. The decline came as investors focused on the company's unresolved China problem, where Greater China revenue fell 11% to $5.85 billion and direct digital sales in the region dropped 29% in fiscal 2026. Nike's reported gross margin climbed 890 basis points to 49.2% in the fourth quarter, but 900 basis points of that came from a one-time tariff recovery, leaving underlying margin roughly flat. JPMorgan's $40 sell rating target is now effectively at the market, and a stress scenario stripping out the tariff gain would push Nike's dividend payout ratio above 100%. Peer athletic apparel stocks also fell, with Lululemon down 42% year to date, On Holding down 31%, and Deckers down 10%, while the broad retail ETF XRT remains up 5% year to date, isolating the selloff to athletic apparel.

The temporary 10% global tariff expired on July 24 and was immediately replaced by new Section 301 duties covering the top 60 US trading partners at rates of 10% to 12.5%. Those countries account for roughly 99.4% of all US imports. The legal shift from emergency powers to Section 301 of the Trade Act of 1974 makes the tariffs far harder to overturn in court, signaling they could become a lasting feature of the investment landscape. Nations that adopted or committed to forced-labor import bans pay 10%, while the other 46 pay 12.5%. The market reaction has been muted because the new rates roughly match what was already in place, but structurally a 10% to 12.5% charge on nearly all imports is now a standing cost of doing business.

Nike stock is now underperforming the S&P 500 by the largest margin in 25 years, according to Yahoo Finance AlphaSpace. The stock is down 35% year to date compared to a 13% advance for the S&P 500, and since CEO Elliott Hill officially took over on October 14, 2024, the shares have shed about 49%. In late June, Nike reported fiscal fourth quarter revenue of $11.0 billion, a 1% decline on a reported basis and a 4% drop on a currency-neutral basis, while diluted earnings per share of $0.72 were distorted by a one-time tariff recovery benefit. The company projected fiscal first quarter revenues to be down by a low-to-mid single-digit percentage and reiterated flat earnings per share growth over the next three quarters, excluding tariff recovery proceeds. Analysts from Evercore ISI and Goldman Sachs expressed caution, with Evercore's Michael Binetti noting no clear reason to expand the price-to-earnings ratio and Goldman's Brooke Roach pointing to incrementally cautious macro commentary offsetting near-term business greenshoots.

Nike has notified Pou Sheng International that online sales of Nike products in mainland China will fully cease from January 1, 2027, removing a channel that accounted for about 15% of Pou Sheng's 2025 revenue but only a small share of its profit. The decision is part of Nike's broader marketplace reset aimed at improving margins and supporting full-price sales, though it may temporarily pressure revenue in Greater China. JPMorgan recently downgraded Nike to Underweight, citing a potential US$1 billion China headwind and earnings pressure through fiscal 2028. Nike's investment narrative projects $49.0 billion in revenue and $3.7 billion in earnings by 2029, requiring 1.8% annual revenue growth and a $0.6 billion earnings increase from the current $3.1 billion.

JPMorgan downgraded Nike to Underweight from Neutral, warning that turnaround decisions will pressure earnings through fiscal 2028. Analyst Matthew Boss said actions through calendar 2026 will linger, including a Greater China online marketplace reset starting January 2027 that creates an unmitigated annual revenue headwind of more than $1 billion, or about 20% of the region's revenue, and U.S. store closures that weigh through the first half of fiscal 2028. The firm cut its fiscal 2027 EPS estimate to $1.55, roughly 10% below consensus, and its fiscal 2028 estimate to $1.72, about 20% below the Street, framing fiscal 2028 as a stabilization year. JPMorgan set a December 2027 price target of $40, down from $47, and expects Nike to outline a three-year plan targeting double-digit operating margins by fiscal 2030 at its November investor day.

Nike will stop selling through partner-operated online storefronts in China starting January 2027, a move Bernstein analysts say should lift the company's China operating margins by 200 basis points to 24% in fiscal 2027 but will also erase roughly $1 billion in revenue as the wholesale online channel is wound down. The channel represents a high-teens percentage of Nike's China business, and its elimination is expected to cause a low-teens constant-currency decline in China for fiscal 2027, dragging total company growth by 2 percentage points. Nike's digital presence in China will thereafter be limited to its direct web and app channels and official flagship stores on Tmall, JD.com, and Douyin, a shift aimed at curbing gray-market resellers and deep discounting that management says has hurt brand perception. Bernstein cut its Nike price target to $68 from $72 and lowered fiscal 2027 earnings-per-share estimate to $1.96 from $2.10, while maintaining an outperform rating. The broker named Adidas as the biggest near-term beneficiary, as partners like Topsports and Pou Sheng will need to replace lost Nike online volume, and also sees domestic brands Anta and Li Ning gaining at lower price points.

GE Vernova, up 533% in two years to a $282 billion market cap, could be added to the Dow Jones Industrial Average if Caterpillar issues a stock split to rebalance the index's industrial weighting. Caterpillar and Goldman Sachs together account for over 22% of the price-weighted Dow, and a Caterpillar split would make room for GE Vernova, which would also need its own split from around $1,000 per share to align with the median component price. The author suggests Nike, with the smallest Dow weighting at 0.48%, could be removed to accommodate GE Vernova, citing the athletic wear company's prolonged turnaround. GE Vernova trades at a 30.8 price-to-earnings ratio, but analysts project earnings per share of $30.64 in 2026 and $24.48 in 2027, reflecting potential cyclicality.

Vietnam has been hit with a 12.5% import tariff by the United States, higher than the 10% levied on competitors like Bangladesh, Cambodia, Indonesia, and Malaysia. It has also not been granted access to a new textile mechanism that could lower duties on certain textile products, threatening its position as the largest apparel exporter to the US. The measure took effect on Friday, July 24, 2026, citing insufficient enforcement of forced labor prohibition laws. Vietnam is still in trade negotiations with the US, unlike the four rival nations that have already reached agreements and gained access to the textile mechanism linked to imports of US cotton and raw materials. Vietnam overtook China last year to become the top apparel exporter to the US and is one of the countries with the highest trade surplus with the US. Global brands such as Nike, Gap, Ralph Lauren, and Under Armour use Vietnam as a key production base.

The US will collect duties of at least 10% on imports from most major trading partners, its biggest move yet to reconstruct President Donald Trump's tariff wall that was pierced by the Supreme Court. The new levies, outlined Thursday by senior administration officials, follow an investigation into the alleged failure of around 60 economies to prevent forced labor in their supply chains to the detriment of American workers. Goods from some 10 trading partners deemed to have adopted forced-labor prohibitions will be subject to 10% tariffs, while products from dozens of others will face a 12.5% charge. The new duties take effect Friday at 12:01 a.m. New York time, and they replace a 10% global import tax that expires Friday, ensuring no gap between the two. Imports such as fuel, foods and fertilizers will be exempt, as well as products covered by separate industry-specific levies or the North American trade agreement with Mexico and Canada.

Nike stock is trading 75% from its previous peak following weakening sales growth and margin pressure. The company has been dealing with weak demand for lifestyle products, which account for roughly half of its revenue, and sales decreased 1% year over year last quarter. CEO Elliott Hill acknowledged the turnaround progress is uneven but said management is building Nike for the next decade, not the next quarter. Structural improvements to the supply chain and tighter inventory management are expected to drive earnings growth and stronger margins over the next 10 years. Analysts expect adjusted earnings to reach $2.75 by fiscal 2029, compared to a previous peak of $3.95 in fiscal 2024.

Nike is set to terminate agreements with hundreds of online distributors in China starting January 2027, as part of a major business restructuring plan to revive sales in the Chinese market, which have declined for two consecutive years. The company said it currently has more than 1,000 online sellers in China, and the large number of online stores has fragmented the consumer experience too much, with exceptions for certain authorized partners. Nike's revenue in Greater China has been falling amid competition from local brands and shifting consumer behavior. Under this plan, Nike will increase investment in its own stores, of which it has more than 200 in China, and work with partners to enhance the in-store retail experience. Analysts at Citi view this decision as reflecting Nike's willingness to accept a smaller revenue base in exchange for higher profits, but warn that Chinese consumers may perceive Nike as de-emphasizing the Chinese market. Meanwhile, analysts at Bloomberg Intelligence say it is an effort to regain control of brand image and pricing power, though it may lose market share in the short term.

Nike is ending all online sales of its products in mainland China through distributor Pou Sheng starting January 1, 2027, a channel that accounted for 15% of Pou Sheng's 2025 revenue. Nike shares have fallen 32.11% year to date and 41.45% over the past year, closing at $42.96. The most followed valuation narrative pegs Nike's fair value at $36.83, suggesting the stock is overvalued, while its current price-to-earnings ratio of 20.5 times sits below the US luxury industry average of 21.7 times and a fair ratio of 26.9 times. The company maintains a solid operating margin above roughly 10% and a return on invested capital nearly double its cost of capital, though revenue growth is projected at around 3% over the next couple of years. Investors are weighing weaker demand, the China restructuring, and a slower turnaround against completed buybacks and product plans.

Nike shares are trading 76% below their November 2021 all-time high as of July 16, reflecting ongoing financial struggles despite the company's strong brand. The sportswear giant reported flat fiscal 2026 revenue of $46.4 billion, with net income falling 3% for the year, while Greater China sales dropped 12% in the fourth quarter. CEO Elliott Hill is leading a turnaround effort under the Sport Offense strategy, with North America posting 3% revenue growth and the running category achieving five straight quarters of double-digit gains. However, consensus estimates call for a 1.5% revenue decline in fiscal 2027, and the stock's price-to-sales ratio of 1.4 has not been this low since 2009. The Motley Fool concludes that Nike is not a once-in-a-lifetime buying opportunity and sees no reason for shares to go parabolic soon.

Nike shares fell 36% in the first half of 2026 as flat revenue, tariff-driven margin pressure, and the Iran conflict weighed on the stock. The footwear giant reported flat revenue of $11.3 billion in its fiscal third quarter, with gross margin declining 130 basis points to 40.2%, and warned that gross margin would not return to growth until the second quarter of fiscal 2027. The stock plunged 15.5% on April 1 following the report, and earlier declines in March were exacerbated by the war in Iran, which lifted inflation and threatened consumer spending. Fourth-quarter results released on June 30 showed a 1% revenue decline, but the stock recovered the next day as investors anticipated a return to margin expansion in the new fiscal year.