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 IncWeak earnings and cut full-year outlook due to footwear hangover and reset.
Nike IncRetailer's weak outlook signals delayed turnaround and pricing pressure from markdowns.
adidas AG
On Holding Ltd
Evercore Partners Inc
Jefferies Financial Group Inc