Zacks Research Issues Pessimistic Forecast for NIKE Earnings

NIKE, Inc. (NYSE:NKE) – Analysts at Zacks Research decreased their FY2029 EPS estimates for NIKE in a research note issued on Tuesday, August 11th. Zacks Research analyst Team now anticipates that the footwear maker will post earnings per share of $2.56 for the year, down from their prior forecast of $2.63. Zacks Research has a “Strong Sell” rating on the stock. The consensus estimate for NIKE’s current full-year earnings is $1.74 per share.

NIKE (NYSE:NKE) last posted its earnings results on Tuesday, June 30th. The footwear maker reported $0.20 EPS for the quarter, beating the consensus estimate of $0.11 by $0.09. The company had revenue of $10.97 billion during the quarter, compared to analyst estimates of $10.85 billion. NIKE had a return on equity of 16.54% and a net margin of 6.70%.The business’s revenue was down 1.1% compared to the same quarter last year. During the same period in the prior year, the company earned $0.14 earnings per share.

A number of other research analysts also recently commented on the company. BTIG Research restated a “buy” rating and set a $55.00 price objective on shares of NIKE in a research note on Wednesday, July 1st. JPMorgan Chase & Co. restated an “underweight” rating and set a $40.00 price target (down from $47.00) on shares of NIKE in a research report on Tuesday, August 4th. Piper Sandler dropped their price objective on shares of NIKE from $50.00 to $45.00 and set a “neutral” rating on the stock in a report on Wednesday, July 1st. Robert W. Baird reiterated an “outperform” rating and issued a $70.00 price objective on shares of NIKE in a research report on Wednesday, July 1st. Finally, Barclays reduced their target price on shares of NIKE from $67.00 to $52.00 and set an “overweight” rating for the company in a research note on Wednesday, July 1st. One investment analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, eighteen have issued a Hold rating and five have given a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $53.53.

NIKE Trading Down 1.9%

Shares of NYSE NKE opened at $41.29 on Wednesday. The company has a market cap of $61.25 billion, a price-to-earnings ratio of 19.76, a price-to-earnings-growth ratio of 1.87 and a beta of 1.11. NIKE has a 12-month low of $40.00 and a 12-month high of $80.17. The company has a current ratio of 1.96, a quick ratio of 1.36 and a debt-to-equity ratio of 0.40. The stock’s 50 day simple moving average is $43.06 and its 200 day simple moving average is $49.13.

NIKE Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Tuesday, September 1st will be paid a $0.41 dividend. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $1.64 annualized dividend and a dividend yield of 4.0%. NIKE’s dividend payout ratio is presently 78.47%.

Insiders Place Their Bets

In related news, COO Venkatesh Alagirisamy sold 890 shares of the stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $41.60, for a total value of $37,024.00. Following the completion of the transaction, the chief operating officer owned 74,820 shares in the company, valued at $3,112,512. This represents a 1.18% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Amy Montagne sold 4,867 shares of NIKE stock in a transaction on Friday, August 7th. The shares were sold at an average price of $42.05, for a total value of $204,657.35. Following the transaction, the insider owned 57,436 shares in the company, valued at approximately $2,415,183.80. This trade represents a 7.81% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 26,142 shares of company stock valued at $1,169,380 over the last three months. 1.10% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On NIKE

Institutional investors and hedge funds have recently bought and sold shares of the business. Scarborough Advisors LLC bought a new position in shares of NIKE during the 1st quarter valued at about $25,000. Cornerstone Financial Management LLC bought a new stake in shares of NIKE in the 4th quarter worth approximately $26,000. Sankala Group LLC bought a new stake in shares of NIKE in the 4th quarter worth approximately $26,000. Meeder Asset Management Inc. lifted its stake in NIKE by 108.4% during the first quarter. Meeder Asset Management Inc. now owns 548 shares of the footwear maker’s stock valued at $29,000 after purchasing an additional 285 shares during the last quarter. Finally, J.Safra Asset Management Corp acquired a new stake in NIKE during the fourth quarter valued at approximately $29,000. 64.25% of the stock is owned by institutional investors and hedge funds.

NIKE News Roundup

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: NIKE’s planned signature shoe partnership with basketball star Victor Wembanyama could strengthen its connection with younger consumers and support a refreshed basketball strategy. The investment provides a potential growth catalyst as the company seeks to rebuild momentum. What Does Nike Gain From Its Victor Wembanyama Signature Shoe Bet?
• Positive Sentiment: NIKE is upgrading its international logistics network to improve inventory flow, reduce markdowns and support profit margins. Successful execution could help offset ongoing pressure on international sales. Are International Logistics Improvements Paying Off for NIKE?
• Neutral Sentiment: Investors continue to closely track NIKE’s turnaround, including its efforts to improve product innovation, manage inventory and restore brand momentum. Commentary comparing NIKE with other struggling footwear companies highlights both its scale and the challenges facing the sector. Why Is Nike the Consumer Name Markets Track Through Its Turnaround? Nike, Lululemon, Deckers, and On Holding Have All Plunged
• Neutral Sentiment: NIKE announced changes in key finance roles, including the planned resignation of Vice President and Chief Accounting Officer Johanna Nielsen. The transition may draw attention to financial controls and execution, although no immediate business impact was reported. Nike Announces Leadership Changes in Key Finance Roles
• Negative Sentiment: NIKE continues to lose ground in Greater China, where local competitors are gaining share while brands such as Lululemon and Amer Sports report stronger regional growth. Persistent China weakness is a major concern for revenue and brand momentum. China’s Athleisure Boom Is Not Lifting Every Brand Equally
• Negative Sentiment: NIKE underperformed the broader market amid a selloff in footwear stocks, reflecting investor concerns about demand, competition and the pace of its recovery. An insider’s sale of 4,867 shares adds a modest negative signal, though the executive retained a substantial stake. Nike Suffers a Larger Drop Than the General Market NIKE Insider Sale Filing

NIKE Company Profile

Nike, Inc (NYSE: NKE) is a global designer, marketer and distributor of athletic footwear, apparel, equipment and accessories. Founded in 1964 as Blue Ribbon Sports by Phil Knight and Bill Bowerman and renamed Nike in 1971, the company is headquartered near Beaverton, Oregon. Nike develops and commercializes products across performance and lifestyle categories for sports including running, basketball, soccer and training, and is known for signature technologies and design-driven product lines.

The company markets products under several primary brands, including Nike, Jordan and Converse, and sells through a combination of wholesale relationships, branded retail stores and direct-to-consumer channels such as company-operated stores and digital platforms (e.g., Nike.com and mobile apps).