Consumer Discretionary

Investors probably aren’t looking at Nike’s dramatic sell-off as a “buy the pullback” moment, Wedbush analysts Tom Nikic and Matt Quigley say in a research note. The drop to a multiyear low comes after the shoes and apparel maker reported disappointing fiscal 4Q results and gave a substantial cut to FY25 guidance, indicating that the challenges it faces are more impactful than management had expected, the analysts say. They’re maintaining an outperform rating on the stock with the expectation Nike will eventually sort things out, but the analysts imagine shares will “stay in the proverbial penalty box,” until new product innovations come to bear and management regains some investor trust. Nike plunges 18%.

The challenges facing Nike (NKE) are “clearly more impactful” than previously expected as the company lowered its full-year revenue outlook following a fiscal fourth-quarter sales miss, Wedbush Securities said Friday. The athletic footwear and apparel maker now anticipates a mid-single-digit percentage revenue decline in fiscal 2025, Chief Financial Officer Matthew Friend said during a late Thursday earnings conference call. The company previously expected annual growth. Friend told analysts that sales are expected to decline by high-single digits in the first half of the ongoing fiscal year, versus previous projections for a low-single-digit decrease. “We have been navigating several headwinds, which we now expect to have a more pronounced impact on fiscal 2025,” Friend said on the call. “Although the next few quarters will be challenging, we are confident that we are repositioning Nike to be more competitive with a more balanced portfolio to drive sustainable, profitable long-term growth.” For the

Nike’s (NKE) Q4 results were “very choppy” with the company missing its Q4 sales estimates and “meaningfully” cutting its fiscal 2025 guidance, Wedbush said in a note to clients on Friday. The company’s revenue fell to $12.61 billion for the three months ended May 31 from $12.83 billion a year earlier. Analysts polled by Capital IQ expected $12.86 billion. Earnings rose to $0.99 per share from $0.66 a year earlier. Analysts expected $0.83. Wedbush cut Nike’s price target to $97 from $115, while keeping its outperform rating. The firm also cut Nike’s fiscal 2025 EPS forecast to $3.06 from $3.89 and the fiscal 2026 EPS estimate to $3.48 from $4.35. “We remain at outperform due to our expectation that [Nike] will eventually ‘figure it out,’ but our conviction in our thesis has certainly taken a hit,” said Wednesday analysts, including Tom Nikic. The analysts noted that Nike now expects fiscal

Nike said it now expects revenue to drop this fiscal year as it cut its outlook amid lower traffic trends and worsening macroeconomic conditions in China. Shares of the sneaker and apparel company fall 12%, to $83, in after-hours trading. The stock has declined 13% since the beginning of the year. Nike on Thursday said it no longer expects to report revenue growth for the fiscal year ending in May 2025, and guided for revenue to be down in the mid-single digits. Analysts polled by FactSet anticipate revenue growth of 1.4%, to $52.11 billion. The company, which had most recently guided for a drop in first-half revenue in the low-single digits, said it now anticipates a decline in the high-single digits. For the first quarter, Nike forecasts a drop in revenue of about 10%. Wall Street had forecast a drop of 2.8%, to $12.57 billion, in the quarter. Nike is

After market close Thursday, Nike is expected to report that sales grew 1% for the full yearits worst results in more than two decades excluding the first year of the pandemic and the 2008-09 financial crisis. Ahead of Nike’s results, The Wall Street Journal has taken a detailed look at how the company lost ground in the critical running categorydig in here. And here’s a rundown of some other key financial data points, based on consensus estimates compiled by FactSet: — For the most recent financial year, Nike is expected to report net income jumped 8.6% to $5.51 billion. — That translates into a 14% bounce in adjusted earnings per share, which are seen hitting $3.70. — For the most recent quarter, analysts expect about $1.29 billion of profit, on revenue of $12.86 billion.

Nike’s stock hasn’t been a winning bet for the better part of the past three years. One analyst thinks the company’s losing streak could soon be coming to an end as product innovation ramps up. Oppenheimer analyst Brian Nagel upgraded Nike shares to Outperform from Perform Friday, and lifted his price target to $120 from $110. Nagel also reinstated Nike as a top megacap pick across his coverage. Nike shares are 11% lower this year, and have shed 38% over the past three years. There are a lot of reasons investors have been downbeat on the stock, including slower sales growth in China, a sluggish innovation cycle, rising competition, and cooling consumer spending in the U.S. Those challenges persist for Nike, Nagel acknowledged, but he believes the company’s turnaround efforts will start panning out in the next few quarters. And with shares trading at a roughly 25% discount to their