Zacks Research Has Bearish Estimate for NIKE FY2029 Earnings

Key Points

• Zacks Research cut NIKE’s FY2029 EPS estimate to $2.56 from $2.63 and maintained a “Strong Sell” rating, reflecting a bearish long-term outlook.
• NIKE shares opened at $41.29, near their 12-month low of $40.00; analysts have an average “Hold” rating and a $53.53 price target, despite widely differing views.
• The company recently exceeded quarterly earnings and revenue expectations, but sales declined 1.1% year over year. Persistent weakness in Greater China and broader concerns about demand and competition remain key risks to its turnaround.

NIKE, Inc. (NYSE:NKE - Free Report) - Stock analysts at Zacks Research reduced their FY2029 earnings per share (EPS) estimates for shares of NIKE in a research report issued on Tuesday, August 11th. Zacks Research analyst Team now expects that the footwear maker will earn $2.56 per share for the year, down from their prior forecast of $2.63. Zacks Research currently has a "Strong Sell" rating on the stock. The consensus estimate for NIKE's current full-year earnings is $1.74 per share.

Other equities analysts have also issued reports about the company. BTIG Research reaffirmed a "buy" rating and issued a $55.00 price objective on shares of NIKE in a research note on Wednesday, July 1st. Needham & Company LLC reissued a "hold" rating on shares of NIKE in a research report on Thursday, June 4th. Telsey Advisory Group set a $47.00 price target on shares of NIKE and gave the company a "market perform" rating in a report on Wednesday, July 1st. Evercore set a $46.00 price objective on shares of NIKE and gave the stock an "in-line" rating in a research note on Tuesday, June 23rd. Finally, JPMorgan Chase & Co. reissued an "underweight" rating and issued a $40.00 price objective (down from $47.00) on shares of NIKE in a research report on Tuesday, August 4th. One analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, eighteen have issued a Hold rating and five have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $53.53.

NIKE Stock Performance

Shares of NYSE:NKE opened at $41.29 on Wednesday. The firm has a market capitalization of $61.25 billion, a PE ratio of 19.76, a P/E/G ratio of 1.87 and a beta of 1.11. The company has a debt-to-equity ratio of 0.40, a current ratio of 1.96 and a quick ratio of 1.36. The business has a 50-day moving average of $43.06 and a two-hundred day moving average of $49.13. NIKE has a 12 month low of $40.00 and a 12 month high of $80.17.

NIKE (NYSE:NKE - Get Free Report) last issued its earnings results on Tuesday, June 30th. The footwear maker reported $0.20 earnings per share for the quarter, topping the consensus estimate of $0.11 by $0.09. NIKE had a return on equity of 16.54% and a net margin of 6.70%.The business had revenue of $10.97 billion for the quarter, compared to analyst estimates of $10.85 billion. During the same period last year, the company posted $0.14 EPS. The business's quarterly revenue was down 1.1% on a year-over-year basis.

NIKE Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Tuesday, September 1st will be issued a $0.41 dividend. The ex-dividend date is Tuesday, September 1st. This represents a $1.64 dividend on an annualized basis and a yield of 4.0%. NIKE's payout ratio is currently 78.47%.

Insider Activity

In other NIKE news, EVP Philip Mccartney sold 17,398 shares of the company's stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $46.18, for a total value of $803,439.64. Following the completion of the transaction, the executive vice president directly owned 53,133 shares of the company's stock, valued at $2,453,681.94. This represents a 24.67% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Venkatesh Alagirisamy sold 890 shares of the firm's stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $41.60, for a total value of $37,024.00. Following the sale, the chief operating officer owned 74,820 shares of the company's stock, valued at $3,112,512. This represents a 1.18% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 26,142 shares of company stock worth $1,169,380. 1.10% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On NIKE

A number of hedge funds have recently bought and sold shares of the business. Westerkirk Capital Inc. raised its position in shares of NIKE by 52.4% during the 4th quarter. Westerkirk Capital Inc. now owns 131,220 shares of the footwear maker's stock valued at $8,360,000 after acquiring an additional 45,100 shares in the last quarter. OMERS ADMINISTRATION Corp lifted its stake in NIKE by 77.9% during the fourth quarter. OMERS ADMINISTRATION Corp now owns 2,526,179 shares of the footwear maker's stock worth $160,943,000 after purchasing an additional 1,106,499 shares during the last quarter. PFA Pension Forsikringsaktieselskab acquired a new position in NIKE in the fourth quarter worth $43,188,000. Nicholas Company Inc. boosted its holdings in NIKE by 33.3% in the fourth quarter. Nicholas Company Inc. now owns 123,652 shares of the footwear maker's stock worth $7,878,000 after purchasing an additional 30,890 shares during the period. Finally, Stoneridge Investment Partners LLC increased its stake in NIKE by 1,253.6% during the fourth quarter. Stoneridge Investment Partners LLC now owns 78,846 shares of the footwear maker's stock valued at $5,023,000 after purchasing an additional 73,021 shares during the last quarter. Institutional investors and hedge funds own 64.25% of the company's stock.

Key Headlines Impacting NIKE

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: NIKE’s planned signature shoe partnership with basketball star Victor Wembanyama could strengthen its connection with younger consumers and support a refreshed basketball strategy. The investment provides a potential growth catalyst as the company seeks to rebuild momentum. What Does Nike Gain From Its Victor Wembanyama Signature Shoe Bet?
• Positive Sentiment: NIKE is upgrading its international logistics network to improve inventory flow, reduce markdowns and support profit margins. Successful execution could help offset ongoing pressure on international sales. Are International Logistics Improvements Paying Off for NIKE?
• Neutral Sentiment: Investors continue to closely track NIKE’s turnaround, including its efforts to improve product innovation, manage inventory and restore brand momentum. Commentary comparing NIKE with other struggling footwear companies highlights both its scale and the challenges facing the sector. Why Is Nike the Consumer Name Markets Track Through Its Turnaround? Nike, Lululemon, Deckers, and On Holding Have All Plunged
• Neutral Sentiment: NIKE announced changes in key finance roles, including the planned resignation of Vice President and Chief Accounting Officer Johanna Nielsen. The transition may draw attention to financial controls and execution, although no immediate business impact was reported. Nike Announces Leadership Changes in Key Finance Roles
• Negative Sentiment: NIKE continues to lose ground in Greater China, where local competitors are gaining share while brands such as Lululemon and Amer Sports report stronger regional growth. Persistent China weakness is a major concern for revenue and brand momentum. China’s Athleisure Boom Is Not Lifting Every Brand Equally
• Negative Sentiment: NIKE underperformed the broader market amid a selloff in footwear stocks, reflecting investor concerns about demand, competition and the pace of its recovery. An insider’s sale of 4,867 shares adds a modest negative signal, though the executive retained a substantial stake. Nike Suffers a Larger Drop Than the General Market NIKE Insider Sale Filing

NIKE Company Profile

Nike, Inc NYSE: NKE is a global designer, marketer and distributor of athletic footwear, apparel, equipment and accessories. Founded in 1964 as Blue Ribbon Sports by Phil Knight and Bill Bowerman and renamed Nike in 1971, the company is headquartered near Beaverton, Oregon. Nike develops and commercializes products across performance and lifestyle categories for sports including running, basketball, soccer and training, and is known for signature technologies and design-driven product lines.

The company markets products under several primary brands, including Nike, Jordan and Converse, and sells through a combination of wholesale relationships, branded retail stores and direct-to-consumer channels such as company-operated stores and digital platforms (e.g., Nike.com and mobile apps).

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