Wed, Mar. 23, 12:35 PM
- With shares near all-time highs, the market is tough to please, says Deutsche Bank, reiterating its Buy rating and $75 price target on Nike (NKE -3.4%). The current price is $62.68.
- "The stock will be subject to multiple compression," says Canaccord, reiterating its Hold rating and cutting the price target to $57 from $66. Futures orders were up 12% - inline with the team's estimates - but these are less and less becoming a predictor of futures sales. Further, inventory levels in North America remain elevated, and the soft signature basketball business is exacerbating this.
- Reiterating his Buy rating and $75 price target, Sterne Agee analyst Sam Poser says FX impacts caused the revenue miss and high North American inventory levels will be normalized by year-end. He says the weak guidance is likely a base-case scenario and should increase over time. "The product and innovation pipeline remains incredibly robust."
- Jefferies reiterates its Buy rating, but cuts the PT by $1 to $74.
- Previously: Nike offers cautious sales/EPS guidance; shares add to losses (March 22)
- Previously: Nike -4.4% as revenues fall short despite earnings beat (March 22)
Wed, Mar. 23, 9:16 AM
Tue, Mar. 22, 6:52 PM
- Nike (NYSE:NKE) has guided on its earnings call for FQ4 (May quarter) revenue to be up by a mid-single digit rate Y/Y. Consensus is for revenue to grow 8.9% Y/Y to 8.47B.
- The sports apparel giant also forecasts EPS will grow by a low-teens % in FY17 (ends May '17). Consensus is for EPS to rise 15% to $2.48. FY17 revenue is seen growing by as much as a low-double digit clip in constant currency. Consensus in actual dollars is for revenue to grow 9.9% to $36B.
- Shares are now down 6.1% after hours to $60.95, adding to the losses seen after Nike posted mixed FQ3 results (revenue missed, EPS beat) and lower-than-expected annual futures growth of 12%.
Tue, Mar. 22, 4:26 PM
- Nike (NYSE:NKE) has slipped 4.4% in after-hours trading as it beat even higher whisper numbers in EPS with its fiscal Q3 report, though revenues fell nearly $200M short of consensus.
- The company showed "robust and balanced growth across our expansive, powerful portfolio," said CEO Mark Parker. Consensus was for EPS of $0.48, but the company's $0.55 EPS beat even analyst chatter for $0.52.
- Revenues by brand: Nike, $7.6B (up 15% ex-currency); Converse, $489M (down 5% ex-currency).
- Futures orders worldwide for branded footwear/apparel were up 12% Y/Y (up 17% ex-currency), vs. analysts who were looking for 15% for better;
- Gross margin was 45.9% -- flat from the prior year as exchange rates, warehousing costs and inventory clearing offset gains from higher average selling prices and growth in Direct to Consumer business.
- Effective tax rate was 16.3% vs. a year-ago 24.4% as a higher piece of earnings came from operations outside the U.S. Inventories were up 8% to $4.6B.
- Conference call to come at 5 p.m. ET.
- Press release
Tue, Mar. 22, 4:18 PM
Tue, Mar. 22, 1:12 PM
- Under Armour (UA -1.6%) trades lower a day after losing a key executive to rival Nike (NKE +0.4%).
- Dave Dombrow was serving the company as a senior VP of design. He was an important part of the successful introduction of the Curry line of basketball shoes.
- Beaverton isn't new ground for Dombrow. He worked at Nike from 2000 to 2003.
Mon, Mar. 21, 5:35 PM
Mon, Mar. 21, 1:38 PM
- Investors seem to expect strong numbers from Nike (NKE +3.3%) tomorrow, despite the almost certainty that futures orders growth will fall from the dizzying 20% mark recorded last quarter. Analysts expect the Swoosh to report revenue of $8.201B and EPS of $0.47. Retail sector watchers see futures orders growth of 11% to 13% reported.
- Foot Locker (FL +2.6%), Finish Line (FINL +1.5%), and Under Armour (UA +1.8%) are all higher ahead of the Nike report. A key area to watch for all three companies is what Nike says about basketball shoe demand.
Mon, Mar. 21, 10:11 AM
- Lululemon (NASDAQ:LULU) is down 2.6% in early trading after JPMorgan drops the stock from its focus list in favor of Nike (NKE +2.1%).
- JP's confidence in Nike arrives just a day before the company is due to report FQ3 earnings.
- Nike isn't expected to match the eye-popping 20% growth in futures orders last month. Any mark in the double-digits will be viewed as strong this quarter.
- Related: Nike Earnings Preview: Rich Valuation Battles Consumer Tailwinds (March 21)
Thu, Mar. 17, 9:33 AM
- Nike (NYSE:NKE) unveiled some new products during presentations at a media event in New York City.
- The company's HyperAdapt 1.0 self-lacing shoes headlines the product class of 2016. The shoes tighten at the press of a button (think Marty McFly).
- A new version of the Nike+ was also showcased. The updated package incorporates several retail apps into one personalized platform.
- The company is also innovating on the basketball category with new jersey and shorts featuring AeroSwift technology.
- Naturally, a full line of new high-performance athletic shoes were part of the product reveal.
- Nike's innovation page
Wed, Mar. 16, 11:56 AM
- Nike (NKE +0.4%) landed 43 schools with sponsorship ties to its brands in the NCAA basketball tournaments. The tally includes two schools wearing the Jordan brand.
- Adidas (OTCQX:ADDYY) has 15 schools wearing its threads, compared to 11 last year.
- Under Armour (NYSE:UA) is repped by ten teams in this year's tournament, up from six a year ago. Utah (#3 seed), Maryland (#5 seed), and Notre Dame (#6) are UA's best chance to have a Final Four representative.
- Berkshire Hathaway property Russell Athletic has three schools in the field, although all of Warren Buffett's teams are #16 seeds.
- Full NCAA sponsorship bracket from SGB Today
Tue, Mar. 8, 2:35 AM
- Nike (NYSE:NKE) has suspended ties with tennis star Maria Sharapova after she tested positive for an illegal heart drug at the Australian Open.
- Sharapova said she's taken meldonium for over a decade, long before a 2016 ban by the World Anti-Doping Agency, which outlawed the substance as a performance-enhancer.
- How big is her contract? Sharapova brings in a reported $30M per year in endorsements, much of that from Nike, with whom she has a reported $70M deal.
Mon, Mar. 7, 9:18 AM
- Goldman Sachs' Lindsay Drukcer Mann warns that pricing pressure and soft traffic will continue to plague the specialty apparel sector. Five companies in particular look weak to the analyst.
- Lululemon (NASDAQ:LULU): GS notes inventory growth is outpacing sales. Margins are on watch.
- Abercrombie & Fitch (NYSE:ANF): New fast-fashion competition poses a threat (see Amazon accelerates fast-fashion initiative).
- American Eagle Outfitters (NYSE:AEO): Momentum is fading for the teen retailer, according to Mann.
- Gap (NYSE:GPS): Misfires with assortment hurt sales at Banana Republic and with the Gap brand.
- Express (NYSE:EXPR): The chain is starting to lap quarters where pricing boosted results which will be tough to match.
- Goldman's retail team does see some bright spots in the sector. L Brands (NYSE:LB), Urban Outfitters (NASDAQ:URBN), and Nike (NYSE:NKE) are seen as outperformers.
Mon, Mar. 7, 8:00 AM
- Nike (NYSE:NKE) is in the middle of a corruption scandal in Kenya.
- Payments made by the company to sponsor athletes have allegedly been siphoned off to top officials with the Kenyan athletics federation. Nike is competing with Chinese company Li Nig for sponsorship contracts of top Kenyan runners.
- Kenyan authorities have opened an investigation into the matter.
Wed, Mar. 2, 8:36 AM
- Sports Authority officially files for bankruptcy. The company will close 140 stores and take on $595M in financing if its plan is approved.
- The list of unsecured creditors in the bankruptcy filing included Nike (NYSE:NKE) with $48M owed to it, according to a scan by SportsOneSource.
- Asics America (OTC:ASCCF, OTCPK:ASCCY) and Under Armour (NYSE:UA) are both listed with claims of $23M.
- Shares of Dick's Sporting Goods are up 11% over the last month with some positive benefits seen for the company from the sector development.
- Previously: Dick's Sporting Goods eyes strategic Sports Authority assets (Mar. 01 2016)
- Previously: WSJ: Sports Authority bankruptcy filing on its way (Mar. 02 2016)
Fri, Feb. 26, 11:59 AM
- Foot Locker (FL -4.3%) is lower to reverse an early post-earnings rally.
- The company said during its earnings call that sales were hurt during the last two weeks of January due to Winter Storm Jonas and delayed tax rebate checks.
- Sales were still up 5% during the quarter, with the running category delivering a mid-teen comp.
- Another key point from Foot Locker's call (noted by WSJ's Sara Germano) is the positive appraisal of basketball shoe demand. Foot Locker CEO called out the strong demand for the Jordan (Nike), Kyrie (Nike), and Stephen Curry (Under Armour) line of shoes in particular.
- Peers Finish Line (FINL -1.7%), Caleres (CAL -1%), and Shoe Carnival (SCVL -3.4%) are also lower on the day. Nike (NKE +0.4%) and Under Armour (UA +1.8%) are in positive territory.
- Previously: Foot Locker beats by $0.04, beats on revenue (Feb. 26 2016)
- Previously: Foot Locker up post Q4 results (Feb. 26 2016)
NIKE, Inc. designs, develops, markets and sells footwear, apparel, and equipment, accessories and services. Its athletic footwear products are designed primarily for specific athletic use, although a large percentage of the products are worn for casual or leisure purposes. It focuses on NIKE... More
Sector: Consumer Goods
Industry: Textile - Apparel Footwear & Accessories
Country: United States
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