NIKE, Inc., together with its subsidiaries, engages in the design, development, marketing, and sale of athletic footwear, apparel, equipment, accessories, and services worldwide. The company provides athletic and casual footwear, apparel, and accessories under the NIKE, Jumpman, Converse, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell trademarks. It also sells a line of performance equipment and accessories comprising bags, sport balls, socks, eyewear, timepieces, digital devices, bats, gloves, protective equipment, and other equipment for sports activities under the NIKE brand; and various plastic products to other manufacturers. In addition, the company markets apparel with licensed college and professional team, and league logos, as well as sells sports apparel; licenses unaffiliated parties to manufacture and sell apparel, digital devices, and applications and other equipment for sports activities under NIKE-owned trademarks; and operates digital platforms, including fitness and activity apps; sport, fitness, and wellness content; and digital services and features in retail stores. It sells its products to footwear stores; sporting goods stores; athletic specialty stores; department stores; skate, tennis, and golf shops; and other retail accounts through NIKE-owned retail stores, digital platforms, independent distributors, licensees, and sales representatives. The company was founded in 1964 and is headquartered in Beaverton, Oregon.

Nike выглядит как качественный бренд с сильным балансом, но рынок уже платит за это заметную премию. Ликвидность комфортная: current ratio 2.14 и quick ratio 1.40 выше отраслевых ориентиров, а debt/equity 0.50 указывает на умеренную долговую нагрузку и отсутствие давления со стороны баланса. При этом денежная позиция снижается по сравнению с прошлыми периодами, что немного ограничивает запас прочности. Рентабельность остаётся положительной и выше медианы по ROE, ROA и ROI, но тренд по ним ухудшается: ROE снизился с 34.51 до 18.43, ROA — с 11.88 до 6.05, ROI — с 20.43 до 10.61. Маржинальность тоже ослабла: net margin упал до 4.84%, operating margin — до 6.54%, а gross margin хотя и остаётся выше медианы, но постепенно сжимается. Выручка в целом держится на высоком уровне и выглядит устойчивее, чем прибыльность, однако EBITDA и чистая прибыль в последних периодах заметно колебались, что говорит о нестабильности операционного рычага. Дивидендная доходность выросла до 0.89%, но для инвестора это скорее дополнительный плюс, чем главный драйвер оценки. Главный сдерживающий фактор — дорогие мультипликаторы: P/E, P/S, P/B и P/FCF существенно выше медианы отрасли, то есть рынок закладывает в цену уже немало оптимизма. Особенно настораживает, что при таком премиальном оценивании фундаментальная динамика прибыли и маржи не улучшается, а скорее ослабевает. Это означает, что потенциал переоценки вверх ограничен, а риск сжатия мультипликаторов при дальнейшем ухудшении операционных метрик остаётся высоким. В сумме фундаментал поддерживает инвестиционный кейс Nike как сильного, но не дешёвого бизнеса, поэтому целесообразен более осторожный взгляд на справедливую оценку.

Nike, Inc.

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, незначительно вырос. Рынок на стороне быков.

Strong index, slightly up. The market is on the bulls' side.

Слабый индекс, незначительно упал

Nike сохраняет сильный баланс и бренд, но при дорогих мультипликаторах и ослаблении маржи/прибыли оценка выглядит завышенной.

Key Points
Nike could be pinched if producer prices stay elevated for an extended period.
The sportswear stock is already in a slump, and tariffs aren't helping matters.
Inflation is often a drag on equities, but it can really highlight the vulnerabilities of select consumer discretionary stocks. After all, if prices rise too quickly, shoppers respond by altering their spending habits, and many of those changes involve non-essential spending.
Then there's the other kind of inflation. That is the form companies deal with themselves. It's measured by the Producer Price Index (PPI), which showed potentially alarming signs for companies like Nike (NYSE: NKE) in May. Last month, the PPI surged 6.5% year over year, signaling potentially worrisome signs for input-cost-sensitive corporations such as Nike.
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The May PPI reading arrived with shares of the athletic apparel giant mired in a bear market. Nike stock is off nearly 28% this year, and as of June 11, it resides some 43% below its 52-week high. Investors are right to be leery of any stock sporting those bearish percentages, and that caution should be amplified with Nike because there's no telling when producer prices will trend in the company's favor.
Nike margins under duress
One need not be a professional economist to understand why high input costs are drags on Nike. It's all about margins. The more it costs the company to produce sneakers, shirts, and other athletic gear, the more it needs to pass some of those costs on to consumers. If shoppers don't bite, margins languish.
So now Nike is on a six-quarter skid of declining gross margins. Yes, some of the margin erosion due to higher input costs is attributable to the war in Iran. Plastic and rubber, which are crucial to Nike supply chains, have been disrupted by the closure of the Strait of Hormuz.
However, the conflict in the Middle East isn't the only headwind Nike stock is contending with now. Don't forget about U.S. tariffs, which have been punitive to this stock. New U.S. trade levies are a $1.5 billion, or 320-basis-point, problem for Nike because the company relies heavily on Indonesia and Vietnam as production hubs.
Including Nike, some of the largest consumer discretionary companies source goods from those Southeast Asian nations. That's a risky gambit at a time when the U.S. is proposing new tariffs on several countries in the region, including Indonesia and Vietnam. Should those levies be imposed, it could be problematic for Nike, as Vietnam and Indonesia together account for 79% of Nike's footwear production.
Are there reasons to "just do it"?
These days, it sure feels as though some so-called experts are always talking about asymmetric stocks or those names with greater reward than risk profiles. Asymmetry may be in the eye of the beholder, but amid input cost and tariff strife, it's hard to make that call with Nike.
Investors looking for positives can find them in a 3.6% dividend yield, $7 billion in cash, and free cash flow of nearly $3.3 billion per year.
However, those are known variables, implying that investors are more alarmed by Nike's margin struggles than the positives entice them. Better days may lie ahead for the stock, but prospective shareholders are right to be cautious.
Should you buy stock in Nike right now?
Before you buy stock in Nike, consider this:
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Todd Shriber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nike. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Gasoline Prices Are Still High, but This Inflation Reading Could Be Even More Worrisome for Nike Stock.

In the latest trading session, Nike (NKE) closed at $43.96, marking a -1.55% move from the previous day. The stock's change was more than the S&P 500's daily loss of 1.62%. Meanwhile, the Dow lost 1.87%, and the Nasdaq, a tech-heavy index, lost 1.98%.
Shares of the athletic apparel maker have appreciated by 5.43% over the course of the past month, outperforming the Consumer Discretionary sector's loss of 0.56%, and the S&P 500's loss of 0.03%.
The investment community will be paying close attention to the earnings performance of Nike in its upcoming release. The company is slated to reveal its earnings on June 30, 2026. The company is expected to report EPS of $0.11, down 21.43% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $10.87 billion, indicating a 2.03% decline compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.49 per share and revenue of $46.36 billion. These totals would mark changes of -31.02% and +0.11%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Nike. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.67% lower. Currently, Nike is carrying a Zacks Rank of #4 (Sell).
From a valuation perspective, Nike is currently exchanging hands at a Forward P/E ratio of 24.12. Its industry sports an average Forward P/E of 17.66, so one might conclude that Nike is trading at a premium comparatively.
We can additionally observe that NKE currently boasts a PEG ratio of 1.93. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Shoes and Retail Apparel industry was having an average PEG ratio of 1.89.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 90, putting it in the top 37% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Nike (NKE) Stock Moves -1.55%: What You Should Know

Key Points
The World Cup starts this week.
While not an official event sponsor, Nike is launching a major World Cup ad campaign and has several big endorsement deals.
Is this the catalyst Nike needs?
It is World Cup time, as the month-long soccer tournament kicks off June 11 throughout North America and lasts until July 19.
Perhaps no U.S. brand is tied to the "beautiful game" more than Nike (NYSE: NKE). While Nike is not an official sponsor of the FIFA World Cup, many of the sport's leading players, like Cristiano Ronaldo and Kylian Mbappé, have endorsement deals with Nike. Also, Nike provides the shoes and "kits" for 12 teams, including France, England, Brazil, the United States, Canada, and the Netherlands.
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So, Nike will have a ton of visibility over the next month, not just from the players on the field, but on the airwaves and in social media through an advertising campaign it is launching for the World Cup.
Rip the Script
Rip the Script is Nike's new World Cup ad campaign, highlighted by a star-studded 6-minute film. It's designed to introduce the universe of Nike football -- the game, the players, the culture, and, of course, Nike shoes and apparel.
"We are also utilizing the World Cup as an opportunity to catalyze the football marketplace for quarters to come," CEO Elliott Hill said on the fiscal Q3 earnings call. "By the end of the tournament, we will have elevated our presentation in more than 5,000 football doors around the world, with wholesale partners and Nike Direct."
One of the major changes that Hill has ushered in since becoming CEO is renewing the focus on wholesale channels, like Dick's Sporting Goods, Foot Locker, Shoe Palace, and Academy Sports. Wholesale sales were up 5% in the last quarter, while direct sales were down 5% and overall sales were flat.
Hill said he expects to deepen the relationship with these wholesalers through the World Cup.
Is Nike stock a buy?
While Nike has some wholesale sales momentum, it is saddled with declining earnings. In the latest quarter, the third quarter of fiscal year 2026, which ended Feb. 28, expenses rose 2%, and cost of sales jumped 2% due in large part to tariffs. The higher tariffs have contributed to the 3% decline in gross profits and a 130-basis-point drop in gross margin to 40.2%. As a result, net income plummeted 35%.
CFO Matthew Friend said on the call that tariffs will be a headwind until Q2 of fiscal 2027, when mitigation efforts kick in. But the outlook is for a low-single-digit revenue decline through calendar year 2026, and continued margin pressure. By Q2 2027, the December quarter, Friend said the company anticipates margin expansion and the beginning of an earnings recovery.
So is Nike a buy now, given the World Cup's visibility around the corner? The tournament may not have much immediate impact on sales, but the visibility could give the stock a lift, as could a solid Nike Q4 earnings release on June 30.
With shares down 31% year to date, the stock is trading at 22 times earnings, down considerably from earlier levels.
I think Nike stock may actually be nearing the buy zone.
Here's why: Investors have already baked in depressed near-term sales and margins, so a decent earnings report, an expected earnings recovery in fiscal 2027, the visibility of the World Cup, and a reasonable valuation might just make Nike a buy heading into the World Cup.
Should you buy stock in Nike right now?
Before you buy stock in Nike, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nike wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $445,672!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,280,566!*
Now, it’s worth noting Stock Advisor’s total average return is 948% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of June 10, 2026.
Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nike. The Motley Fool recommends Academy Sports And Outdoors. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Should You Buy Nike Stock Ahead of the World Cup?

Key Points
Nike lost ground when it cut out wholesale partnerships and became reliant on existing franchises.
The sportswear giant has restarted wholesale partnerships and committed to innovation.
The dividend yield -- once around 1% -- is now a much more attractive 3.8%.
Nike (NYSE: NKE) stock has really been suffering. The active-wear giant, which is the largest company of its kind by far, has seen its stock plummet 75% from its all-time high. Worse, it's still in the midst of figuring out how to turn around, so a stock rebound may still be far out on the horizon.
In general, it's a good idea to wait for progress before buying a turnaround stock. But Nike has something else going for it: an excellent dividend. Is that enough of a reason to buy it right now?
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
The brand to beat in activewear
Nike is one of the largest apparel companies in the world, and it's far ahead of the competition in the athletic wear space. Consider its revenue in comparison with Adidas, Lululemon Athletica, Under Armour, and On Holding.
It has incredible brand power, and despite recent woes, it remains the No. 1 brand in both footwear and clothing in Piper Sandler's annual Taking Stock With Teens survey. That's an excellent indication of the company's future opportunity.
Can Nike withstand the competition?
The cracks are starting to show, though. It used to have more sales than most of its competition combined, but that's not the case right now. Here's the arc of sales over the past five years.
Newer companies like On are resonating with an upper-income clientele that's still spending under pressure, and older competitors, like Berkshire Hathaway's Brooks, developed an edge in the sport segment while Nike was focused on lifestyle and reliable franchises that turned out not to be so reliable.
New CEO Elliott Hill has crafted a strategy that's rooted in a return to sport and speed in innovation. Management also walked back its disastrous breakup with wholesalers, which was one of the ways competitors were able to reach more customers; without Nike products on the shelves, shoppers reached for alternatives.
There have been several bright spots so far on the journey back. In the 2026 fiscal third quarter (ended Feb. 28), revenue was flat from last year instead of declining, and wholesale revenue increased 5%. The running category was up 20%, and the global football segment was also up double digits.
Is the dividend enough?
While this is playing out, Nike continues to increase the dividend. And since yield moves conversely with stock price, the yield has climbed from around 1% historically to about 3.8% right now.
Nike is a blue chip dividend stock that has raised its dividend for 24 years, even under rough conditions. I do think that it's reliable enough for passive income investors to buy it today, and if you have a long time horizon, you also have the opportunity to see the stock rebound.
Should you buy stock in Nike right now?
Before you buy stock in Nike, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nike wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $445,672!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,280,566!*
Now, it’s worth noting Stock Advisor’s total average return is 948% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of June 9, 2026.
Jennifer Saibil has positions in On Holding. The Motley Fool has positions in and recommends Berkshire Hathaway, Lululemon Athletica Inc., Nike, and On Holding. The Motley Fool recommends Under Armour. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is It Worth Buying Nike Stock for Its Dividend?

In early trading on Tuesday, shares of Nike topped the list of the day's best performing Dow Jones Industrial Average components, trading up 2.2%. Year to date, Nike has lost about 30.6% of its value.
And the worst performing Dow component thus far on the day is Salesforce, trading down 1.7%. Salesforce is lower by about 32.3% looking at the year to date performance.
Two other components making moves today are Apple, trading down 1.0%, and Sherwin-Williams, trading up 2.2% on the day.
VIDEO: Dow Movers: CRM, NKE
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Dow Movers: CRM, NKE

NIKE Inc. NKE is showing early signs of stabilization in its core footwear business following several quarters marked by inventory imbalances, elevated promotional activity and evolving consumer preferences. As the largest contributor to the company’s revenue base, footwear remains central to NIKE’s turnaround efforts. Recent management commentary suggests that the company is making progress in restoring marketplace health, improving product assortments and strengthening demand across key performance categories.
A notable sign of stabilization is the improving traction in strategic footwear segments such as running, basketball and global football. Management highlighted strong momentum in running and double-digit growth in football, reflecting positive consumer response to newer product offerings. At the same time, NIKE is intentionally reducing its dependence on older classic franchises and reallocating resources toward innovation-led platforms that can drive sustainable growth. This portfolio shift is aimed at improving product productivity while enhancing the overall quality of sales.
While encouraging signs are emerging, the recovery is far from complete. Footwear performance remains constrained by inventory-clearing efforts, elevated discounting and intense competition across key markets. Nevertheless, improving sell-through trends, stronger wholesale engagement and a more focused innovation pipeline indicate that the business may be moving toward a healthier footing. If NIKE can successfully balance inventory discipline with new product launches, its footwear segment could become a key catalyst for broader revenue and earnings stabilization.
Management’s focus on expanding newer performance franchises while reducing reliance on legacy styles should also support a healthier product mix. If these initiatives continue to gain traction, the footwear business could emerge from the current transition period with stronger growth and profitability prospects.
NKE’s Competition in the Global Arena
adidas AG ADDYY and lululemon athletica inc. LULU are NKE’s key competitors in the global market.
adidas is seeing encouraging signs of stability in its footwear business as strong demand for running, football and Originals continues to support growth across key markets. Management has emphasized product visibility, franchise strength and disciplined inventory management as drivers of healthier marketplace dynamics. Improved full-price sell-through and sustained consumer interest in both performance and lifestyle offerings suggest that adidas’ footwear segment is benefiting from stronger brand momentum and a more balanced product portfolio.
lululemon is steadily strengthening its footwear business through innovation and expansion across targeted categories. While footwear remains a smaller contributor compared with apparel, the company continues to broaden its product assortment and deepen consumer engagement through a premium, performance-focused approach. Supported by its loyal customer base, direct-to-consumer model and growing brand awareness, lululemon is positioning footwear as an important long-term growth opportunity while maintaining disciplined inventory and pricing strategies.
NKE’s Price Performance, Valuation & Estimates
Shares of NIKE have lost 24% in the past three months compared with the industry’s decline of 18.9%.
Image Source: Zacks Investment Research
From a valuation standpoint, NKE trades at a forward 12-month price-to-earnings ratio of 23.03X compared with the industry’s average of 20.22X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NKE’s fiscal 2026 earnings implies a year-over-year decline of 31%, while that for fiscal 2027 indicates growth of 24.3%. The company’s EPS estimates for fiscal 2026 and 2027 have been stable in the past 30 days.
Image Source: Zacks Investment Research
NIKE stock currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Adidas AG (ADDYY) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is NIKE's Footwear Business Showing Signs of Stabilization?

Key Points
Lululemon turned in solid results but lowered its guidance as trends weakened during the quarter.
The company's new CEO won't take over until September.
Lululemon Athletica's (NASDAQ: LULU) tough year just got worse after the company lowered its full-year guidance following its fiscal first-quarter results. The stock is now down about 45% on the year and 65% over the past year, as of this writing.
Let's take a closer look at the apparel company's most recent results and prospects to see whether a turnaround is near or it's time to throw in the towel.
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The struggles continue
While Lululemon reported slightly better-than-expected Q1 results, the company lowered full-year guidance, noting it began to see moderating sales trends in the quarter. It blamed negative commentary both in the press and on social media, while saying some product launches fell flat, including its New Look of Yoga campaign.
While the company said it is moving with urgency, Lululemon's new CEO is not coming on board until September. The former CEO announced his departure in December, so the struggling company will essentially go nine months without permanent leadership.
For the first quarter, Lululemon's overall revenue rose 4% year over year to $2.47 billion, coming in ahead of the $2.43 billion consensus, as compiled by LSEG. Adjusted earnings per share (EPS) tumbled 35% to $1.69 but edged past the $1.68 consensus.
Once again, there was a big convergence between Lululemon's North American and international results. Americas revenue sank by 3%, while comparable-store sales decreased by 5%. International revenue, meanwhile, jumped 22%, with same-store sales rising 13%. China's revenue soared 30%, while same-store sales climbed 13%.
Gross margin declined by 410 basis points to 54.2%, hurt by tariffs and fixed cost deleveraging. The company expects gross margins to decrease by 90 basis points this fiscal year.
Looking ahead, Lululemon forecast sales in a range of $11 billion to $11.15 billion, representing a 1% decline to break even. It now expects adjusted EPS in a range of $10.95 to $11.15. That compares with earlier guidance for EPS of $12.10 to $12.30 on sales of between $11.35 billion and $11.5 billion, representing growth of 2% to 4%.
The company expects sales to fall by 2% to 3% in fiscal Q2.
Can the stock rebound?
Lululemon will essentially remain a rudderless ship until September, when former Nike exec Heidi O'Neill will take over the helm. However, the end of her time at Nike is not exactly remembered fondly, as she played key roles in the company's struggles under former Nike CEO John Donahoe.
While Lululemon stock is cheap, trading at a forward price-to-earnings (P/E) ratio of under 10.5 times, I'd prefer to see some progress made, or at least the new CEO's plan, before jumping into the name.
Should you buy stock in Lululemon Athletica Inc. right now?
Before you buy stock in Lululemon Athletica Inc., consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Lululemon Athletica Inc. wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $443,191!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,258,838!*
Now, it’s worth noting Stock Advisor’s total average return is 941% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of June 7, 2026.
Geoffrey Seiler has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Lululemon Athletica Inc. and Nike. The Motley Fool recommends London Stock Exchange Group Plc. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Can Lululemon Stocks Stage a Turnaround, or Is It Time to Throw in the Towel?

Key Points
The athleisure retailer met estimates in the first quarter, but offered disappointing guidance for the rest of the year.
It continues to struggle in its core North American market.
New CEO Heid O'Neill will take over in three months.
Lululemon (Nasdaq: LULU) came into its first-quarter earnings report with investors desperate to see some signs of a turnaround, or at least stabilization.
The business has been in disarray for at least the last year as sales growth in North America, its core market, has stalled, and other headwinds, such as tariffs, have weighed on the bottom line. Former CEO Calvin McDonald was pushed out, and the company now has a pair of interim co-CEOs at the helm until Heidi O'Neill, a longtime former Nike exec, takes over the position in September.
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Coming into the report, Lululemon stock was down 40% year-to-date, but investors sent the stock even lower after hours on Thursday, down another 11% as first-quarter results met expectations, but the company cut its full-year earnings guidance. Its second-quarter forecast was also well below the mark.
Lululemon's Q1
The pattern from Lululemon's recent quarters continued with weak results in North America as comparable sales fell 5% in the Americas, but comps rose 13% in international markets, helping to make up for it.
Overall revenue rose 4%, or 2% in constant currency, to $2.47 billion, which edged out the consensus at $2.43 billion. Further down the income statement, the athleisure company continued to struggle with gross margin down 410 basis points to 54.2%, though 280 basis points of that was due to negative tariff impact. The remainder was from fixed cost deleverage due to falling comparable sales in North America.
Selling, general, and administrative expenses rose due to higher store labor hours and increased compensation, which led to operating income falling 37% to $276.9 million. Earnings per share declined from $2.60 to $1.69, which topped the consensus at $1.67.
However, the company's guidance was well short of expectations. For the second quarter, it called for a revenue decline of 2%-3% to $2.45 billion-$2.475 billion, a clear slide from the first quarter and much worse than the consensus at $2.59 billion. It also sees earnings per share of $1.76-$1.81, which compares to estimates at $2.69.
For the full year, it sees revenue of $11 billion-$11.15 billion, or flat to a decline of 1%, and calls for earnings per share of $10.95 to $11.15. That compares with the consensus at $11.47 billion in revenue and earnings per share of $12.28.
Is Lululemon a buy?
Lululemon was up against a low bar, and it still came up drastically short.
The company is facing external headwinds, including tariffs, inflation, and consumer discretionary weakness in the U.S., but that doesn't seem to fully account for the company's struggles. Before his departure, McDonald acknowledged that the company had not kept up enough newness in some of its styles and promised to do better by the spring.
Well, the spring has now come and gone with little to show for it. Co-CEO Meghan Frank noted some success with new product launches, but also said there were misses. She promised the company would be bolder in the second half of the year.
Still, it seems like the turnaround is on pause at least until O'Neill arrives, which is still three months away. It's worth remembering that Lululemon stock also tumbled when O'Neill was named the next CEO, so she'll have to work to earn investor trust.
There's not much in the business right now that makes Lululemon a buy, outside of its strong performance in China, but that doesn't mean the stock's dead. It is cheap as well, trading at a forward P/E of 10 based on this year's dialed-down forecast.
Buying the stock now could pay off, but it would require some faith that the company can put the current challenges behind it. I'd prefer to wait until O'Neill takes the helm and makes her strategy clear. If Lululemon can get back to something like the growth stock it's historically been, there's a lot of upside potential, but that's far from a guarantee.
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Jeremy Bowman has positions in Lululemon Athletica Inc. and Nike. The Motley Fool has positions in and recommends Lululemon Athletica Inc. and Nike. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is Lululemon Athletica a Buy After Its Latest Earnings Report?

Caleres Inc. (CAL) came out with quarterly earnings of $0.38 per share, beating the Zacks Consensus Estimate of $0.37 per share. This compares to earnings of $0.22 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +2.70%. A quarter ago, it was expected that this footwear wholesaler and retailer would post a loss of $0.4 per share when it actually produced a loss of $0.06, delivering a surprise of +85%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Caleres Inc., which belongs to the Zacks Shoes and Retail Apparel industry, posted revenues of $666.6 million for the quarter ended April 2026, missing the Zacks Consensus Estimate by 0.06%. This compares to year-ago revenues of $614.22 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Caleres Inc. shares have added about 16% since the beginning of the year versus the S&P 500's gain of 10.4%.
What's Next for Caleres Inc.?
While Caleres Inc. has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Caleres Inc. was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.38 on $702.26 million in revenues for the coming quarter and $1.57 on $2.88 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Shoes and Retail Apparel is currently in the top 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Nike (NKE), is yet to report results for the quarter ended May 2026. The results are expected to be released on June 30.
This athletic apparel maker is expected to post quarterly earnings of $0.11 per share in its upcoming report, which represents a year-over-year change of -21.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Nike's revenues are expected to be $10.87 billion, down 2% from the year-ago quarter.
Should You Invest in Caleres, Inc. (CAL)?
Before you invest in Caleres, Inc. (CAL), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.
Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)
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Caleres, Inc. (CAL) : Free Stock Analysis Report
NIKE, Inc. (NKE) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Caleres Inc. (CAL) Tops Q1 Earnings Estimates

Shares of NIKE Inc. NKE have come under pressure in recent months, losing momentum and slipping below the key industry benchmarks, an indication of weakening technical strength and a growing bearish bias. The stock yesterday breached an important support level, falling below its 50-day simple moving average (SMA). On June 2, 2026, NKE closed at $43.73, notably under its 50-day SMA of $45, reinforcing the negative short-term trend.
A stock’s move below the 50-day SMA is generally viewed as a sign of weakening momentum, often pointing to a shift from short-term bullishness to bearish sentiment. For NKE, the breach underscores fading investor confidence and softer buying interest, particularly after months of underperformance.
The sportswear behemoth moved below its 200-day SMA in January 2026 and continues to trade below the mark since then, indicating a long-term downward trend.
SMA is an essential tool in technical analysis that helps investors evaluate price trends by smoothing out short-term fluctuations. This approach also provides a clearer perspective on a stock's long-term direction.
NKE Stock Trades Below 50 & 200-Day SMAs
Image Source: Zacks Investment Research
NIKE has delivered a lackluster performance, with its shares declining 25.4% in the past three months, wider than the Zacks Shoes and Retail Apparel industry’s 17.4% fall. The NKE stock has also lagged the broader Zacks Consumer Discretionary sector’s slip of 4.5% and sharply underperformed the S&P 500’s 11.1% rally during the same period.
NKE’s performance is notably weaker than that of its competitors, Carter’s Inc. CRI, adidas AG ADDYY and Caleres Inc. CAL, which have rallied 13%, 17% and 24.7%, respectively, in the past three months.
NIKE’s 3-Month Price Performance
Image Source: Zacks Investment Research
At its current price of $43.73, the NKE stock trades 5.8% above its 52-week low mark of $41.35 and 45.5% below its 52-week high mark of $80.17.
Here’s Why NIKE Stock Is Struggling
Despite showing signs of progress in select categories, NIKE continues to face significant fundamental challenges that are weighing on its stock performance. The company remains in the midst of a broad turnaround effort, with management acknowledging that the recovery is taking longer than anticipated. A key headwind has been the intentional reduction of excess inventory, particularly within its classic footwear franchises, which created an estimated five-percentage-point drag on quarterly results as the company prioritized marketplace health over near-term sales growth.
Another concern is the persistent weakness in NIKE Sportswear, which declined at a low-double-digit rate in the third quarter of fiscal 2026 and continues to offset strength in performance categories, such as running. Management noted that elevated promotions and slower-than-expected sell-through rates across key markets have pressured revenue growth and profitability.
Geographically, Greater China remains a major challenge. Revenues in the region fell 10% in the fiscal third quarter, and NIKE expects further pressure as it intentionally reduces wholesale shipments and clears excess inventory to restore pricing discipline.
Profitability has also been affected by external pressures, including higher tariffs in North America and elevated markdown activity across digital channels. The gross margin contracted 130 basis points in the quarter, while restructuring efforts resulted in a $230-million severance charge. Although management remains confident that its “Win Now” strategy will eventually restore sustainable growth, investors appear concerned about the prolonged recovery timeline, and the continued pressure on sales and margins.
Here’s How Estimates Are Shaping for NKE
The Zacks Consensus Estimate for NIKE’s fiscal 2026 and 2027 EPS was unchanged in the last 30 days. For fiscal 2026, the Zacks Consensus Estimate for NKE’s revenues implies 0.1% year-over-year growth, while the estimate for EPS suggests a 30.1% decline. The consensus mark for fiscal 2027 revenues and earnings indicates 1% and 24.6% year-over-year growth, respectively.
Image Source: Zacks Investment Research
NIKE’s Valuation Picture
While NIKE remains fundamentally strong, backed by its decisive actions to reposition itself for sustainable and profitable long-term growth, its current forward 12-month price-to-earnings (P/E) multiple of 28.89X raises concerns about whether the stock's valuation is justified. This multiple is higher than the Zacks Shoes and Retail Apparel industry average of 16.45X and the S&P 500’s average of 22.23X, making the stock appear relatively expensive.
At 28.89X P/E, the Swoosh brand owner is trading at a much higher valuation than its competitors. Its peers, such as Carter’s, Caleres and adidas, are delivering solid growth and trade at more reasonable multiples. Carter’s, Caleres and adidas have forward 12-month P/E ratios of 12.62X, 8.21X and 15.98X — all significantly lower than NIKE. At such levels, NKE’s valuation seems out of step with its growth trajectory, especially given the recent decrease in its stock price.
Image Source: Zacks Investment Research
Should You Avoid NIKE Stock?
NIKE remains a strong global brand, but its near-term outlook appears pressured. The stock’s continued move below the 50- and 200-day SMAs signals a sustained downtrend, and reflects weak investor sentiment. Fundamental challenges, including Sportswear weakness, inventory cleanup, Greater China pressure, tariff headwinds and elevated promotions, continue to weigh on sales and margins.
Meanwhile, NKE’s premium forward P/E multiple looks expensive relative to its industry, the S&P 500 and key peers. Given the weak technical setup and stretched valuation, investors may prefer to wait for clearer signs of recovery before considering this Zacks Rank #5 (Strong Sell) stock.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.