Morningstar

Nike Inc Class B NKE

Morningstar Rating
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Stock XNYS Rating as of
Today’s Losers
$83.10 −6.03 (6.77%)
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As of Delayed Price Closed

Company Report

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Nike Earnings: Substandard Results Met Expectations as CEO Change Looms; Shares Attractive

David Swartz

Matching our estimate, Nike's sales declined 10% in fiscal 2025’s first quarter. More significantly, CFO Matt Friend (who handled the earnings call solo ahead of CEO Elliott Hill’s arrival on Oct. 14) suggested that sales and margin improvement are developing slowly. Indeed, second-quarter sales are set to fall 8%-10%, below our estimate for a 6% decline. Current challenges include unsettled economic conditions in major markets, as well as Nike’s decision to pull back on the supply of some major footwear franchises to avoid excessive discounting. While this move is hurting sales at present, we think it is necessary to protect its brand value, the source of our wide moat rating.

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Price vs Fair Value

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NKE is trading at a 728% premium.
Price
$83.10
Fair Value
$731.00
Uncertainty
Medium
1-Star Price
$763.20
5-Star Price
$65.70
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Although uneven of late, the global sportswear market should expand, especially in Asia and other developing areas. As the share leader in most countries, Nike is positioned to benefit.

Bears

As a worldwide business, Nike has felt the effects of issues like the war in Ukraine, shipping delays, currency volatility, and inflation. These and other issues could continue to impair its results.

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News

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Trading Information

Previous Close Price
$89.13
Day Range
$81.77–85.23
52-Week Range
$70.75–123.39
Bid/Ask
$83.27 / $83.35
Market Cap
$124.60 Bil
Volume/Avg
33.2 Mil / 14.0 Mil

Key Statistics

Price/Earnings (Normalized)
20.98
Price/Sales
2.52
Dividend Yield (Trailing)
1.78%
Dividend Yield (Forward)
1.78%
Total Yield
5.19%

Company Profile

Nike is the largest athletic footwear and apparel brand in the world. Key categories include basketball, running, and football (soccer). Footwear generates about two thirds of its sales. Its brands include Nike, Jordan (premium athletic footwear and clothing), and Converse (casual footwear). Nike sells products worldwide through company-owned stores, franchised stores, and third-party retailers. The firm also operates e-commerce platforms in more than 40 countries. Nearly all its production is outsourced to contract manufacturers in more than 30 countries. Nike was founded in 1964 and is based in Beaverton, Oregon.
Sector
Consumer Cyclical
Industry
Footwear & Accessories
Stock Style Box
Large Core
Total Number of Employees
79,400
Website
https://www.nike.com

Competitors

Valuation

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Metric
NKE
LULU
UAA
Price/Earnings (Normalized)
 20.9819.2815.34
Price/Book Value
 8.948.002.05
Price/Sales
 2.523.290.69
Price/Cash Flow
 18.9415.1430.74
Price/Earnings
NKE
LULU
UAA

Financial Strength

Metric
NKE
LULU
UAA
Quick Ratio
 1.511.330.91
Current Ratio
 2.402.431.73
Interest Coverage
 ———
Quick Ratio
NKE
LULU
UAA

Profitability

Metric
NKE
LULU
UAA
Return on Assets (Normalized)
 16.76%26.84%−0.33%
Return on Equity (Normalized)
 44.27%44.88%−0.79%
Return on Invested Capital (Normalized)
 23.34%33.51%−0.56%
Return on Assets
NKE
LULU
UAA

Footwear & Accessories Industry Comparables

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1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
adidas AG
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ZRSKdglmk$46.3 Bil
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—Yxqwp$15.8 Bil
 ASICS Corp ADR
ASCCY
—Mvvqlw$14.4 Bil
 ASICS Corp
ASCCF
—Hmrqlp$14.4 Bil
 Skechers USA Inc Class A
SKX
HdtrhdsrtZzpjs$10.1 Bil
 Birkenstock Holding PLC
BIRK
—Tjnrqp$8.9 Bil
 Crocs Inc
CROX
—Sytvt$8.4 Bil

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