Nike, Inc. - Class B (NKE)
Nike Stock Surges as Q4 Results Show Turnaround Plan Progressing
Close Key Takeaways Nike shares surged 15% Friday after the shoe and athletic apparel maker beat estimates for the fourth quarter.Sales and profit fell less than expected year-over-year as new CEO Elliott Hill's turnaround plan progresses.Nike's CFO said the company expects tariffs to lead to a hit of up to $1 billion in extra costs over its next fiscal year if they stay at current levels. Nike (NKE) shares soared Friday, a day after the athletic apparel giant topped fiscal fourth-quarter estimates. After the bell Thursday, Nike—which is the midst of new CEO Elliott Hill's turnaround plan to return to sales growth—posted smaller-than-expected drops in revenue and profit. CFO Matt Friend said in Thursday's earnings call that the company expects to take a hit of up to $1 billion this year due to the tariffs implemented by the Trump administration, as Nike looks to shift as much of its sourcing as possible away from China. Following the report, JPMorgan analysts lifted their price target for Nike stock to $64 from $56, while maintaining their "neutral" rating. That makes the JPMorgan analysts slightly more bearish than average, with analysts tracked by Visible Alpha holding nine "buy," seven "hold," and one "sell" rating, with an average price target of nearly $77. Nike shares were up 15% in recent trading—a larger move than options traders were expecting—to lead S&P 500 gainers. The stock is within just 5% of where it started the year. UPDATE—This article has been updated with the latest share price information. Do you have a news tip for Investopedia reporters? Please email us at [email protected]
5 Things That Market Participants are Focused on Today
Close U.S. stock futures are pointing slightly higher as the S&P 500 and Nasdaq approach record highs and investors review the trade agreement between the U.S. and China; May inflation is expected to have risen in today's release of the PCE figures; Nike (NKE) shares are soaring in premarket trading after its quarterly results topped analysts' estimates; and a top aide to Tesla (TSLA) CEO Elon Musk reportedly has left the company. Here's what investors need to know today. 1. US Stock Futures Point Higher to End Week U.S. stock futures are edging higher as investors digest details of a trade agreement with China and look ahead to inflation data set for release this morning. S&P 500 and Nasdaq futures are up 0.3% after the indexes closed a tick shy of record highs yesterday. Dow Jones Industrial Average futures also are slightly higher. Bitcoin (BTCUSD) is down slightly to trade at around $107,000. The yield on the 10-year Treasury note and oil futures are slightly higher. Gold futures are declining to around $3,300 an ounce. 2. US, China Agree on Trade Framework, Officials Say The U.S. and China have further confirmed the details of the trade framework reached by both sides earlier this month in London, raising the prospect of lower tariffs soon and a resumption in U.S. access to Chinese rare-earth minerals. U.S. Commerce Secretary Howard Lutnick said in an interview with Bloomberg that the two countries had finalized an agreement. "They're going to deliver rare earths to us," Lutnick said, adding that once China does that, "we'll take down our countermeasures." A China Ministry of Commerce spokesperson also confirmed that an agreement was reached. 3. PCE Inflation Data Due This Morning Consumer prices are expected to have risen in May when inflation data is released at 8:30 a.m. ET today. The Personal Consumption Expenditure (PCE) inflation report is projected to show a 2.3% year-over-year increase in prices, up from a 2.1% annual increase in April, according to a survey of economists by Dow Jones Newswires and The Wall Street Journal. "Core" PCE inflation, which excludes volatile food and energy prices, is expected to have increased to an annual rate of 2.6% from 2.5% in April. The Federal Reserve uses the PCE data as its benchmark for determining whether prices are rising at its target rate of 2% a year. 4. Nike Stock Jumps on Better-Than-Expected Earnings Report Nike (NKE) shares are soaring 10% in premarket trading after its quarterly report came in better than analysts expected amid a turnaround effort by its CEO. The sportswear giant's revenue and profit fell year-over-year but topped the analyst consensus compiled by Visible Alpha. The company also said it expects to take a $1 billion hit from tariffs, but that it also expected to mitigate those costs over time. Nike shares enter Friday down 17% this year. 5. Musk Aide Afshar Reportedly Out at Tesla A top aide to Tesla (TSLA) CEO Elon Musk reportedly has left the company. Omead Afshar, who led Tesla’s sales and manufacturing operations in North America and Europe, has departed the electric vehicle maker after being promoted less than a year ago, according to reports in Bloomberg and The Wall Street Journal. The reported departure comes as Tesla's European sales plummeted for a fifth straight month in May. Tesla shares, which moved higher earlier this week with the rollout of its robotaxi service in Texas, are ticking lower in premarket trading. Do you have a news tip for Investopedia reporters? Please email us at [email protected]
Nike stock soars 17% after CEO soothes investors, says recovery is on the horizon
Nike confirmed that the largest financial impact from its turnaround plan is now in the past, boosting investor confidence that the company's results will soon stabilize. A number of Wall Street banks, including HSBC, issued bullish commentary on the stock the morning after it released fiscal fourth quarter results, with some saying key strategies are showing signs of progress.
Nike Shifts Production and Raises Prices to Mitigate $1 Billion Tariff Cost
Nike said Thursday (June 26) that the new U.S. tariffs currently in place will cost the company about $1 billion. [contact-form-7] The footwear and apparel company is working to mitigate that gross incremental price increase, Nike President and CEO Elliott Hill said in remarks prepared for delivery Thursday during the firm's fourth-quarter earnings call.
Nike Makes Bullish Cross Above Critical Moving Average
In trading on Friday, shares of Nike crossed above their 200 day moving average of $71.77, changing hands as high as $72.84 per share. Nike shares are currently trading up about 14.8% on the day.
Nike Stock (Finally) Did It: Rallying After Earnings
Nike Inc (NYSE:NKE) is the best Dow stock by far today, last seen up 14.8% to trade at $71.85.
Nike's rough fourth quarter seen as bottom of turnaround, shares jump
Nike Inc (NYSE:NKE, ETR:NKE) shares jumped almost 15% on Friday following the release of a rough fourth quarter report, with significant declines in sales and profits anticipated by investors. The company's guidance also reflects near-term headwinds, but marked an improvement from previous trends.
Nike's stock is headed for a ‘swoosh'-shaped recovery after years of pain, analyst says
Nike Inc. has endured a tough few years marked by weaker demand and its own struggles to adapt to shifting trends. While the athletic-gear and sneaker maker's fourth-quarter results Thursday were hardly spectacular, analysts say that Nike is finally on a path to recovery.
Nike Takes Billion Dollar Tariff Hit But Predicts Hard Yards Behind It
Nike put a billion-dollar price tag on tariff costs Thursday, while it proclaimed that the worst should be behind the company as sales and profit declines moderate ahead.
Nike Stock: The Mother of All Comebacks Might Have Just Began
After a brutal 60% drawdown from its 2021 all-time highs, Nike Inc NYSE: NKE just reminded Wall Street why it's still a stock to watch. Shares were up nearly 10% in pre-market trading on Friday following Thursday evening's earnings report that came in much better than feared.
Nike says Trump tariffs could cost it $1bn
Nike's costs will go up $1bn (£728m) this year if US President Donald Trump's tariffs remain at the current level, the company has told investors.
Banking giant sets Nike stock price target after earnings
Banking giant HSBC has issued a bullish revision on Nike (NYSE: NKE) stock following the sportswear manufacturer's latest earnings report.
