Nike shares closed at $37.30 on Oct. 23, near their 52-week low of $31.97 and well below the high of $70.44. Fiscal first-quarter sales, for the period ended Aug. 31, dropped 5% year over year on a foreign-currency-adjusted basis, and management forecasts sales will fall by a high single-digit percentage this year. CEO Elliott Hill has outlined steps including rebuilding retailer relationships, developing products and refocusing on sports merchandise, but rebuilding the brand's relevance remains challenging. Amid intense competition and a turnaround that has yet to show tangible results, the author considers the stock a possible value trap and would pass on it despite the big price drop.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
Nikeearningsvaluationconsumer goods
Open a keyword to see other news on the same topic.
Related news
- Should You Buy the Dip in Nike Stock While the Market Is This Nervous?
Nike's stock has dropped 76.5% over the last five years and nearly 40% in 2026 alone, compared with a roughly 12% gain for the S&P 500. The company expects a high-single-digit percentage drop in revenue for fiscal 2027, yet it posted first-quarter fiscal 2027 net income of $712 million (versus $727 million a year earlier) and holds $8.3 billion in cash against $11.1 billion in total debt. The author views Nike as a potential income stock if revenue stabilizes, with the dividend currently yielding 4.2%, and says he is not buying the dip for now.
- Is Nike Still a Growth Stock? Here's the Answer.
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.
- 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.
- 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.
- Up 17% Off Its 52-Week Low, Is Nike's Turnaround Finally Gaining Steam?
Nike shares are 79% below their all-time high but up 17% from their 52-week low as the company works to revive growth. In fiscal 2027 Q1, sales fell 4% year over year, gross margin expanded 0.6 points to 42.8%, and EPS of $0.48 beat the $0.44 Wall Street expected, though it was below $0.49 a year earlier. Running, U.S. basketball and global football grew by double digits, but China sales dropped 26% amid competition from local brands, and management still projects a high single-digit decline in fiscal 2027. The author suggests investors may want to wait for more progress, especially in China, before calling the stock a bargain, noting it trades at a P/E near 18, close to its lowest level in 10 years, with a 4.3% dividend yield.
- You Can Do Better Than Nike. Buy This High-Yield Dividend Stock Instead.
The article compares Nike with Procter & Gamble (PG). Nike's fiscal first-quarter revenue (ended August 31) fell 5% after adjusting for currency effects, and its share price dropped nearly 40% through October 22 this year, while the S&P 500 gained 12%. P&G kept growing, with fiscal first-quarter sales (ended September 30) up 4% on an adjusted basis, higher volume contributing 2.4 percentage points, and the stock up 15.6% this year. The article highlights brands such as Head & Shoulders, Tide, Gillette and Pampers, which it says have high market shares and steady demand even in downturns. P&G's fiscal 2026 free cash flow of $15.1 billion comfortably covered $10.2 billion in dividends. The company has paid dividends for 136 years and raised them for 70 straight years, making it a Dividend King, with a 2.6% dividend yield versus 1.1% for the S&P 500.
Related markets
Latest news
- VSE Corporation, Viavi Solutions, Moog, Bloom Energy, and Comfort Systems stocks trade up, what you need to know
U.S. stocks rose across the board as investors looked ahead to a busy week, with about 36% of S&P 500 companies reporting quarterly results and the Federal Reserve due to decide on rates Wednesday. Money markets put a 90% probability on the Fed holding rates steady, and analysts expect S&P 500 earnings to jump 30% in the third quarter from a year earlier. Among the movers, VSE Corporation (VSEC) rose 4.2%, Viavi Solutions (VIAV) and Bloom Energy (BE) each gained 6.7%, Moog (MOG.A) climbed 4.3%, and Comfort Systems (FIX) advanced 7.2%. Falling Treasury yields supported the rally, and BondBloxx Investment Management viewed the expected Fed hold as a temporary pause rather than the end of tightening.
- Elon Musk Ally Jason Calacanis Targets 40% Tesla Rally — But His Nearly $1M Uber Bet Aims Higher
Early Uber investor Jason Calacanis disclosed purchases of about $1 million each in Uber and Tesla, plus 3,000 Netflix shares, for a total of $2.24 million. He bought 15,000 UBER shares at $65 for $975,000 with a 12-month target of $120, implying 85% upside, and 3,000 TSLA shares at $357 with a $500 target, implying about 40% upside. Calacanis predicted Tesla would hold 40% of the autonomous vehicle market, Uber and its partners 35%, and Waymo 15%, and said the Uber trade depends on price: “If Uber was at $100, I wouldn’t make this trade.” He also expects Waymo to buy Lucid or Rivian, two of several small autonomous-vehicle positions he disclosed last month.
- Anthropic’s S-1 Draws Reactions: Investor Says $100B ARR Could Be Possible By Year-End
Anthropic published its S-1 on Monday ahead of an IPO that could come as soon as next month, with broadly positive reactions from analysts and investors. The filing showed about $16.3 billion in revenue for the six months ended June 30, up from $1.2 billion a year earlier, and more than 1,900 customers paid at least $1 million over the past year. The company posted an $80.7 billion net loss in the first half, largely driven by a $72.4 billion accounting charge tied to convertible notes. Daniel McCarthy pointed to an 85.4% gross margin and an 8.4% GAAP operating margin in Q2, while Gavin Baker said ARR could reach $100 billion by year-end. Shares are expected to list on Nasdaq under the ticker “ANT,” with Goldman Sachs and Morgan Stanley leading 20 other underwriters.
- Former German Vice Chancellor Takes Senior Role at Vietnamese Securities Firm
HD Securities (HDS) elected Philipp Roesler, a former German Vice Chancellor, as Vice Chairman of its Board of Directors effective October 23, for the remainder of the 2025-2030 term. Roesler served as Vice Chancellor and Minister of Economics and Technology under Angela Merkel and previously held roles at Siemens, Deutsche Bank and Lufthansa. HDBank owns 90% of HDS, which reported nine-month operating revenue of VND 3,018 billion and pre-tax profit of VND 2,241 billion, up 2.6 and 3.7 times year on year, and has completed its annual plan. The company plans an IPO in Q4 2026, offering 121.79 million shares (11.11% of outstanding shares) at a minimum price of VND 12,252 per share to raise at least about VND 1,492 billion. If completed, charter capital would rise from VND 10,961 billion to VND 12,178 billion.
- French Government Pledges Change After Protests Turn Violent
The French government pledged to overhaul the national online university admissions platform, with significant changes in 2027 before it is formally replaced in 2028. Minister Philippe Baptiste also committed a 4.5 billion USD loan to renovate schools, reduce class sizes and increase student grants. The concessions aim to ease weeks of protests that began with students and spread to workers demanding relief from rising living costs, following the October 17 unrest that saw Limoges' city hall gutted by fire. About 2,400 people have been arrested, while protest leaders say the proposed measures have not met their demands. The unrest has also spread to Belgium, Albania and Italy.
- Morning of Oct 27: ACB Posts VND 16,600 Billion Profit; 12 Banks' Reported Profits Top VND 110,000 Billion
As of the morning of October 27, 12 banks had reported nine-month 2026 profits totaling over VND 110,000 billion, showing a clear divergence across the sector. ACB posted pre-tax profit of over VND 16,600 billion, up more than 3% and reaching 74% of its full-year plan; OCB reported VND 4,123 billion, up over 20%, completing 59% of its plan. LPBank posted pre-tax profit of VND 10,421 billion, up nearly 9%, completing about 70% of its annual plan against a full-year target of VND 14,982 billion. Kienlongbank earned pre-tax profit of VND 1,713 billion, up 11.5%, but its third-quarter profit fell 12.7% year on year. Saigonbank's nine-month pre-tax profit was nearly VND 66 billion, down nearly 75%, reaching only 21% of its annual plan.
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.