• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Stock

Nike earnings: Can NKE regain its dominance in 2025?

by March 21, 2025
by March 21, 2025

Nike Inc (NYSE: NKE) is still grappling with a sales decline – but its latest earnings release signals the turnaround strategy of its new CEO Elliott Hill is starting to show some early signs of working out.

While the athletic footwear retailer reported better-than-expected revenue for its third quarter after-hours, the number still represented a 9.0% decline on a year-over-year basis, attributed primarily to continued material weakness in China.

Still, Nike shares are inching up in extended hours as the company’s earnings, at 54 cents a share, printed well above 29 cents a share in Q3.

Could Nike regain its dominance?

Nike Inc. has acknowledged its issues and has already transitioned into the action phase under the leadership of its new chief executive, according to Matt Powers of Powers Advisory Group.

Investors are not too bummed about the company’s earnings since Hill had already broadcast it to investors that Nike is a big ship and so, it’ll take some time to turn it around.  

Despite areas of weakness in Q3, Powers remains bullish on Nike stock as a long-term investment because “inflation will eventually stabilize, Nike will adapt, and we expect it to regain some dominance.”

Powers recommends owning NKE shares also because they pay a healthy dividend yield of 2.23% at writing.

Is Nike stock relatively expensive?

Investors should note, however, that Nike stock is not inexpensive to own at current levels.

Its forward price-to-earnings multiple currently sits at about 40, which is roughly the same as On Holding.

However, the latter is currently in a heavy growth mode.

Compared to the likes of Deckers or Under Armour, NKE shares are super expensive considering both of them are going for about 20 times forward at the time of writing.

That said, analysts are reluctant to turn their backs on Nike Inc.

The consensus rating on the iconic name currently sits at “overweight” with a mean price target of over $84 representing about a 13% upside from here.

What Nike expects for the future

On Thursday, the New York-listed firm refrained from updating its guidance for 2025.  

Its management did, however, confirm that the outlook for the back half of this year remains the same as communicated in December.

According to Matt Friend, the company’s chief of finance:

The operating environment is dynamic, but what matters most for Nike is serving athletes with news product innovation and re-igniting brand momentum through sport.

Earlier this week, BMO senior analyst Simeon Siegel also said Nike was fixing its problems with new products and great storytelling.

Nonetheless, it’s worth mentioning here that Nike stock is currently down more than 25% versus its 52-week high of just over $100.

The post Nike earnings: Can NKE regain its dominance in 2025? appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Asian stock mixed on Friday: Nikkei near 38,000, Hang Seng in red
next post
S&P 500 slips as economic uncertainty weighs on markets; Tesla sees record retail inflows

Related Posts

Trump gives ’50-50 chance’ for EU trade deal...

July 27, 2025

Japan’s $550B investment could back Taiwan chip plants...

July 27, 2025

Musk hints at budget Model Y, but analysts...

July 27, 2025

From $824 to over $1,300: how soaring rents...

July 27, 2025

Top 3 catalysts for the VOO ETF stock...

July 27, 2025

Top catalysts for the Nikkei 225 Index this...

July 27, 2025

GO Residential REIT drops on debut after oversubscribed...

July 26, 2025

Meta to halt political ads in EU from...

July 26, 2025

Here’s why the Coursera stock price has surged...

July 26, 2025

What is Lip-Bu Tan doing for Intel stock...

July 26, 2025

Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.

By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

Recent Posts

  • Trump gives ’50-50 chance’ for EU trade deal as leaders prepare for Sunday meeting

    July 27, 2025
  • Japan’s $550B investment could back Taiwan chip plants in US, says trade official

    July 27, 2025
  • Musk hints at budget Model Y, but analysts doubt its impact on Tesla’s sales downturn

    July 27, 2025
  • From $824 to over $1,300: how soaring rents are consuming American paychecks

    July 27, 2025
  • Top 3 catalysts for the VOO ETF stock this week

    July 27, 2025
  • Top catalysts for the Nikkei 225 Index this week

    July 27, 2025

Editors’ Picks

  • 1

    Meta executives eligible for 200% salary bonus under new pay structure

    February 21, 2025
  • 2

    Walmart earnings preview: What to expect before Thursday’s opening bell

    February 20, 2025
  • 3

    New FBI leader Kash Patel tapped to run ATF as acting director

    February 23, 2025
  • 4

    Anthropic’s newly released Claude 3.7 Sonnet can ‘think’ as long as the user wants before giving an answer

    February 25, 2025
  • 5

    Nvidia’s investment in SoundHound wasn’t all that significant after all

    March 1, 2025
  • 6

    Elon Musk says federal employees must fill out productivity reports or resign

    February 23, 2025
  • 7

    Cramer reveals a sub-sector of technology that can withstand Trump tariffs

    March 1, 2025

Categories

  • Economy (1,969)
  • Editor's Pick (192)
  • Investing (185)
  • Stock (1,313)
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Read alsox

FTC seeks delay in Amazon Prime case,...

March 13, 2025

BP shares decline following weak Q1 gas...

April 12, 2025

Nippon Steel CEO says US golden share...

June 19, 2025