In its first-quarter fiscal 2027 report, Nike's revenue fell 4% year over year to $11.2 billion and net income slid 2% to $712 million, as its turnaround plan continues. Converse sales dropped 28% to $263 million and Greater China sales fell 22% to $1.1 billion, while North American wholesale sales rose 9% to $2.9 billion. The article argues Nike is no longer a growth stock, since revenue was $12.3 billion in the fourth quarter of 2021, a 96% increase, and it may instead look more like an income stock. It still pays a dividend yielding 4.3%, and CFO David Denton said the company can maintain and grow the dividend over time, with $8.3 billion in cash against $11.1 billion in debt. The author would want to see sales declines reverse before investing.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
Nikeearningsdividendsconsumer goods
Open a keyword to see other news on the same topic.
Related news
- Nike Now Yields More Than Procter & Gamble and Twice as Much as Coca-Cola. Is It the Most Overlooked Dividend Stock? Here's the Clear Answer.
The author notes Nike yields 4.4%, above P&G’s 2.7% and Coca-Cola’s 2.2%, but this high yield mainly reflects a falling share price, with a quarterly dividend of $0.41 per share. Nike is in a turnaround, with fiscal 2027 first-quarter revenue down 4% to $11.2 billion, net income down 2% to $712 million, and guidance for a high-single-digit revenue decline. The stock has dropped 41.6% in 2026 and 76.7% over five years, and if sales keep falling, the dividend’s sustainability could be questioned. The author would avoid Nike for now and favors Coca-Cola and P&G instead, which are up 34.3% and 11.1% this year, respectively.
- Coca - Cola Yields 2 . 3 % and Nike Yields 4 . 4 %. Here Why Only 1 of These High - Yield Dividend Stocks Is a Buy This October .
The article compares dividend stocks Coca-Cola (KO) and Nike (NKE), which yield 2.3% and 4.4%, respectively. Coca-Cola has raised its dividend for 64 consecutive years and grew it 51% in the past decade, while Nike has increased its payout for 24 straight years and by 128% over the last 10 years. Nike's stock trades 79% below its November 2021 peak as it undergoes a turnaround, with management expecting sales to decline this fiscal year. The author leans toward Coca-Cola for its stability, citing a 34.9% operating margin in the second quarter.
- Why Nike Stock Was Climbing Today
Nike shares rose 5.3% as of 12:38 p.m. ET without any company-specific news, as investors rotated from high-priced tech stocks into value areas such as consumer discretionary. Peers Lululemon and Deckers gained 5.1% and 3.9%, while the Nasdaq Composite fell 0.5%. The article links the tech selloff to fears of rising interest rates and other concerns, which has pushed investors to look for new places to deploy cash. It notes Nike's revenue has been flat or declining over the last three years, and the stock currently has a 4.6% dividend yield. The author says a Nike turnaround will take time after a disappointing earnings report earlier this month.
- Nike Is Down 80% From Its High. Here's the Only Number That Matters.
According to Interbrand, Nike is the world's 23rd-most-valuable brand, yet its stock was down 80% from its 2021 peak as of Oct. 12. In fiscal Q1 2027 (ended Aug. 31), revenue fell 4% year over year to $11.2 billion, missing analyst estimates, with Greater China down 22% and North America up 2%. Performance and running sales grew, while sportswear and Jordan declined. Management expects fiscal 2027 revenue to fall by high single digits and will hold an investor day next month. At $35.11 a share, the stock sits at a 13-year low, and the author views it as a risky turnaround bet that calls for caution.
- Athletic Apparel Stocks Fall as Retail Selling Spreads: Lululemon and Under Armour Drop 4%, Nike Retreats 2%
Premium athletic apparel stocks are falling more than twice as fast as the broader retail sector: Lululemon is down 4% to $100.35, Under Armour is down 4% to $4.68, and Nike is down 2% to $37.54, while the SPDR S&P Retail ETF (XRT) fell 2% and the SPDR S&P 500 ETF Trust (SPY) fell 0.4%. The article notes that none of these companies has issued a fresh announcement and links the pressure to sentiment toward premium apparel, even though U.S. retail sales rose 0.8% in September to $745 billion. Lululemon reported Q2 FY2026 revenue of $2.42 billion, down 4.3% year over year, with Americas comparable sales down 12%, and cut its full-year revenue outlook to a decline of 5% to 7%. Its Q3 FY2026 revenue is guided to $2.29 billion to $2.32 billion, a decline of 10% to 11%.
- The stock market has already crashed: Why a Wall Street veteran says Nike is the ultimate turnaround trade.
Related markets
Latest news
- 5 of the Fastest-Growing Stocks in the Market
The article ranks five fast-growing stocks by latest-quarter revenue growth: Nebius Group (NBIS), CoreWeave (CRWV), AppLovin (APP), Robinhood Markets (HOOD) and IREN (IREN), and examines what investors are paying for that growth. Nebius's second-quarter revenue jumped 454% year over year to $582.3 million, but at a price-to-sales ratio (P/S) of about 46, the highest of the five, its growth is largely funded by cash, customer prepayments and outside financing. CoreWeave's revenue rose 112.5% to around $2.6 billion, backed by a $104 billion revenue backlog, and it trades at 6.0 times sales, but $640 million in net interest expense means its growth relies heavily on debt. AppLovin grew revenue 53% to $1.9 billion, funded by its own profits and cash, at about 16 times sales, while Robinhood's revenue rose 32% to a record $1.3 billion at about 23 times sales, though trading activity can fall sharply when markets cool. IREN's total revenue fell 26.7% to $137.2 million as Bitcoin mining declined, while AI cloud revenue grew tenfold to $70.5 million at about 19 times sales; the article suggests AppLovin could be the safest option because its growth is funded by profits.
- Down Roughly 50% From Its Highs, Is Netflix Stock Finally a Buy?
Netflix (NFLX) shares have fallen roughly 50% from their all-time closing high of $133.91 on June 30, 2025, following the company's third-quarter report. Before the report, Netflix fired its chief content officer and announced its largest layoff since 2022, hiring former Disney executive Peter Rice as it struggled to produce U.S. blockbuster shows. In Q3, revenue rose 12% to $12.87 billion and adjusted EPS jumped 49% to $0.87, above the $0.82 analyst estimate compiled by LSEG. Netflix guided Q4 revenue to $13.4 billion but trimmed full-year revenue to $51.1 billion and cut its ad revenue forecast from $3 billion to $2.7 billion due to a slower ad rollout. The article argues that at a forward P/E of about 17 times 2027 estimates, the valuation now looks attractive.
- US objective is no more oil, nuclear issues, its total destruction of Iran: Foreign Affairs Expert Waiel Awwad
Foreign affairs expert Waiel Awwad told ANI that Washington's aim on Iran goes beyond nuclear talks to regime change and the disintegration of Iran, making Israel the dominant regional power. As crude oil reached USD 117 a barrel, the highest since April, Iran's Revolutionary Guard Corps claimed full control of the Strait of Hormuz, saying two supertankers carrying more than 4.5 million barrels struck naval mines on an unauthorised southern route. Iran's Chief of the General Staff Ali Abdollahi said Iran would not allow US military vessels into the Persian Gulf and questioned Trump's claims that Iran's nuclear facilities were destroyed. Separately, US Secretary of State Marco Rubio visited Reliance's Jamnagar refinery in India, where US Ambassador Sergio Gor said US LPG made up 67% of India's imports, up from below 10%.
- Inflation Is Running Hotter Than Expected. That Could Be Bullish for Bitcoin.
Consumer prices rose 3.7% in the 12 months through September 2026, and Bitcoin fell about $1,000 after the hotter-than-expected October 14 report, as high inflation raises the odds of Federal Reserve rate hikes. The article argues Bitcoin is poorly placed to hedge cost-driven inflation: the PPI jumped 1.3% in September and 6.3% over 12 months, and squeezed households may invest less in riskier assets. Inflation from money creation could help more, since J.P. Morgan Asset Management describes Bitcoin as tracking the global money supply, and M2 grew 5.7% in the year through August 2026. If the Fed cuts rates while prices are still rising, Bitcoin's fixed supply could serve as a hedge, and the article says the next few quarters will test this thesis.
- Grayscale New Zcash ETF Has Gathered $1 Billion in Assets in Just 30 Days. Here's Why Investors Are So Bullish on Zcash.
Zcash, the largest privacy coin by market cap, was up 149% on the year as of October 22, even as most major cryptocurrencies lost value. Grayscale launched the Zcash ETF (ZCSH) on August 25, and it gathered more than $1 billion in its first 30 trading days, placing it among the top 1% of ETFs launched over the past decade by first-month assets, according to managing director Krista Lynch. Bulls point to growing demand for financial privacy, with about 29% of ZEC now in shielded addresses, up from about 12% at the start of 2025, and a hard cap of 21 million ZEC. The article notes risks including use of Zcash to launder stolen funds in September and October, possible exchange delistings, and a critical Orchard pool vulnerability disclosed in June that has since been patched. It also calls the ETF's 2.5% management fee, or $25 per $1,000 invested, a sizable premium compared with buying Zcash directly on an exchange.
- US objective is no more oil, nuclear issues, its total destruction of Iran: Foreign Affairs Expert Waiel Awwad
Foreign affairs expert Waiel Awwad told ANI that Washington's aim on Iran goes beyond nuclear talks to regime change and the disintegration of Iran, making Israel the dominant regional power. As crude oil reached USD 117 a barrel, the highest since April, Iran's Revolutionary Guard Corps claimed full control of the Strait of Hormuz, saying two supertankers carrying more than 4.5 million barrels struck naval mines on an unauthorised southern route. Iran's Chief of the General Staff Ali Abdollahi said Iran would not allow US military vessels into the Persian Gulf and questioned Trump's claims that Iran's nuclear facilities were destroyed. Separately, US Secretary of State Marco Rubio visited Reliance's Jamnagar refinery in India, where US Ambassador Sergio Gor said US LPG made up 67% of India's imports, up from below 10%.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.