Nike Still Facing 'Significant Downside Risk' Over Coming Quarters, UBS Says

MT Newswires Live12-21

Nike (NKE) still faces "significant downside risk" following its fiscal Q2 results as the sportswear company could deliver "more bad news" over the next quarters stemming from its inventory issues, UBS said in a note Friday,

The investment firm noted that despite ending Q2 with an inventory that was flat year-over-year, the company expects Q3 sales to decline by the low double digits. Markets could be miscalculating the time and cost it could take Nike to "get inventory back to healthy levels," and the imbalance between inventory levels and sales "could take 2-3 quarters to fix," UBS said.

UBS added that Nike's new CEO Elliott Hill did not get a chance to impact the company's inventory orders for fiscal Q4 or fiscal Q1, meaning the company could have more inventory coming in than it wants for those quarters. The firm also said that Nike's new product pipeline may not fill up as quickly as some would expect as the company is still in the beginning stages of putting sports back at the center of its business.

UBS cut its fiscal Q3 earnings estimate by 40% to $0.31 per share and fiscal Q4 estimate by 53% to $0.26 per share. The firm also lowered its fiscal 2025 earnings estimate by 15% to $2.05, well below the consensus of $2.71.

The firm maintained a neutral rating on the stock as it believes in the company's ability to rebound over the long term, but cut its price target to $73 from $80.

NKE shares were edging 0.1% lower in recent trading.

Price: 77.03, Change: -0.07, Percent Change: -0.09

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2493476867?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2024-12-21 04:18","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2493476867","market":"sg","top_or_hot":-1,"title":"Nike Still Facing 'Significant Downside Risk' Over Coming Quarters, UBS Says","media":"MT Newswires Live","content":"<html><body><p> Nike (NKE) still faces \"significant downside risk\" following its fiscal Q2 results as the sportswear company could deliver \"more bad news\" over the next quarters stemming from its inventory issues, UBS said in a note Friday,</p><p>The investment firm noted that despite ending Q2 with an inventory that was flat year-over-year, the company expects Q3 sales to decline by the low double digits. Markets could be miscalculating the time and cost it could take Nike to \"get inventory back to healthy levels,\" and the imbalance between inventory levels and sales \"could take 2-3 quarters to fix,\" UBS said.</p><p>UBS added that Nike's new CEO Elliott Hill did not get a chance to impact the company's inventory orders for fiscal Q4 or fiscal Q1, meaning the company could have more inventory coming in than it wants for those quarters. The firm also said that Nike's new product pipeline may not fill up as quickly as some would expect as the company is still in the beginning stages of putting sports back at the center of its business.</p><p>UBS cut its fiscal Q3 earnings estimate by 40% to $0.31 per share and fiscal Q4 estimate by 53% to $0.26 per share. The firm also lowered its fiscal 2025 earnings estimate by 15% to $2.05, well below the consensus of $2.71.</p><p>The firm maintained a neutral rating on the stock as it believes in the company's ability to rebound over the long term, but cut its price target to $73 from $80.</p><p>NKE shares were edging 0.1% lower in recent trading.</p><p>Price: 77.03, Change: -0.07, Percent Change: -0.09</p></body></html>","source":"mtnewswires_news","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Nike Still Facing 'Significant Downside Risk' Over Coming Quarters, UBS Says</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNike Still Facing 'Significant Downside Risk' Over Coming Quarters, UBS Says\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-21 04:18 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.mtnewswires.com/><strong>MT Newswires Live</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Nike (NKE) still faces \"significant downside risk\" following its fiscal Q2 results as the sportswear company could deliver \"more bad news\" over the next quarters stemming from its inventory issues, ...</p>\n\n<a href=\"https://www.mtnewswires.com/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0786609619.USD","symbol_name":"高盛全球千禧一代股票组合Acc","start_time":0,"source_url":"https://www.mtnewswires.com/","article_id":"2493476867","we_media_id":"1092851196","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2493476867","pubTimestamp":1734725899,"columns":[],"sourceInfo":{"source_id":"mtnewswires_news","name":"MT Newswires"},"weMediaInfo":{"media_name":"MT Newswires Live","introduction":"The most recognized names in North America, Europe and Asia rely on MT Newswires to power their applications. Better news, better service, better price.","home_visible":1,"id":"1092851196","head_image":"https://community-static.tradeup.com/news/3002d84abbd5ace3c99397c7f95b8d4e"},"summary":"Nike (NKE) still faces \"significant downside risk\" following its fiscal Q2 results as the sportswear company could deliver \"more bad news\" over the next quarters stemming from its inventory issues, UB","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0786609619.USD":"高盛全球千禧一代股票组合Acc","LU2098885051.SGD":"JPMorgan Funds - Multi-Manager Alternatives A (acc) SGD","BK4558":"双十一","BK4561":"索罗斯持仓","BK4585":"ETF&股票定投概念","BK4534":"瑞士信贷持仓","BK4581":"高盛持仓","NKE":"耐克","BK4533":"AQR资本管理(全球第二大对冲基金)","BK4588":"碎股","LU0823411888.USD":"法巴消费创新基金 Cap","BK4146":"鞋类","BK4566":"资本集团","LU1303367103.USD":"摩根大通多经理另类基金 A (acc)"},"translate_title":"瑞银表示，耐克未来几个季度仍面临“重大下行风险”","themeId":"ce55ba54f8a8674e0de87be9fa5ce7ef","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"NKE":1},"content_text":"Nike (NKE) still faces \"significant downside risk\" following its fiscal Q2 results as the sportswear company could deliver \"more bad news\" over the next quarters stemming from its inventory issues, UBS said in a note Friday,The investment firm noted that despite ending Q2 with an inventory that was flat year-over-year, the company expects Q3 sales to decline by the low double digits. Markets could be miscalculating the time and cost it could take Nike to \"get inventory back to healthy levels,\" and the imbalance between inventory levels and sales \"could take 2-3 quarters to fix,\" UBS said.UBS added that Nike's new CEO Elliott Hill did not get a chance to impact the company's inventory orders for fiscal Q4 or fiscal Q1, meaning the company could have more inventory coming in than it wants for those quarters. The firm also said that Nike's new product pipeline may not fill up as quickly as some would expect as the company is still in the beginning stages of putting sports back at the center of its business.UBS cut its fiscal Q3 earnings estimate by 40% to $0.31 per share and fiscal Q4 estimate by 53% to $0.26 per share. The firm also lowered its fiscal 2025 earnings estimate by 15% to $2.05, well below the consensus of $2.71.The firm maintained a neutral rating on the stock as it believes in the company's ability to rebound over the long term, but cut its price target to $73 from $80.NKE shares were edging 0.1% lower in recent trading.Price: 77.03, Change: -0.07, Percent Change: -0.09","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2493476867"}