Latest news with #JohnDonahoe
Yahoo
16 hours ago
- Business
- Yahoo
Is Nike a Buy After Its Q4 Earnings Beat?
Nike's fourth-quarter numbers came in better than expected on both the top and bottom lines. Sales, however, were still down by double digits, and its bottom line was down a whopping 86%. The company faces a tariff hit of $1 billion for the new fiscal year based on current tariff rates, which it plans to "fully mitigate." 10 stocks we like better than Nike › Nike (NYSE: NKE) recently released its latest earnings numbers, which beat expectations and left analysts and investors thrilled. The stock popped on the news, as many investors may see the better-than-expected results as an early indication that the business in going in the right direction under its new CEO, Elliott Hill. The stock has hit levels it hasn't been at in months. Could now be a good time to buy the stock as it starts to rally, or is Nike still too risky of an investment to be hanging on to? On June 26, Nike posted its fourth-quarter and year-end results for fiscal 2025, which ended May 31. For the most recent quarter, the company's sales totaled $11.1 billion and beat analyst expectations of $10.7 billion. And its per-share profit of $0.14 also came in slightly ahead of Wall Street projections of $0.13. The top- and bottom-line beat gave investors reason to be optimistic that perhaps things are going better than expected. Hill says that "from here, we expect our business results to improve." He took over in October of last year, following the retirement of John Donahoe. Hill hopes to turn around the struggling footwear and apparel company by reconnecting with its key retail partners. But while the recent earnings beat may be encouraging to hear, investors shouldn't overlook the fact that sales were still down 12% year over year. And across every major market, its sales were down for the quarter. The company's net income also cratered by a whopping 86%, as sales were down, margins were compressed, and the business spent more on marketing. While the earnings beat may sound good, there are still plenty of issues here that should give investors pause about the business. Management also has to worry about another headwind: tariffs. The company expects that tariffs will cost the business approximately $1 billion during the current fiscal year. And while the company is looking to make adjustments to its supply chain and increase prices to "fully mitigate" the effects of tariffs, it underscores just how vulnerable the business is to global trade policies. Raising prices may work to strengthen its margins, but it may end up hurting demand in the process. And there's also the risk that tariff rates may change. Economic conditions may also worsen across the globe due to trade wars, further impacting the sale of discretionary items, such as Nike's high-end footwear. Investors should be careful not to celebrate too early, because there are still plenty of question marks around the business and how strong its financials may look in the year ahead. Beating quarterly analyst expectations is a short-term metric for a stock. How the business performs over a longer stretch and how sound its fundamentals look will ultimately dictate where the stock will go in the long run. Unfortunately, it's simply far too early, with too little progress made in Nike's turnaround efforts thus far, to suggest it's definitively on the right track and is a safe stock to buy. There's still ample risk here, and paying more than 30 times earnings for a stock that's seeing its revenue plummet doesn't make for a compelling investment opportunity. Investors may be better off taking a wait-and-see approach with Nike's stock, as there could still be tougher times ahead for the business in the months ahead. Before you buy stock in Nike, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 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 $722,181!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $968,402!* Now, it's worth noting Stock Advisor's total average return is 1,069% — a market-crushing outperformance compared to 177% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 30, 2025 David Jagielski 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. Is Nike a Buy After Its Q4 Earnings Beat? was originally published by The Motley Fool
Yahoo
16 hours ago
- Business
- Yahoo
Did Nike's Turnaround Just Begin?
Nike stock jumped on its earnings report despite a drop in revenue. The company fulfilled its forecast that headwinds in revenue growth and margin pressure would moderate after the fourth quarter. Nike's turnaround appears to be under way, though investors will have to be patient. 10 stocks we like better than Nike › Nike (NYSE: NKE) stock jumped 16% on Friday following its fiscal fourth-quarter earnings report the night before. That move would be the biggest one-day percentage gain for the stock in several years. Nike has been in a downward spiral since its peak in 2021 as a strategic shift toward the direct-to-consumer channel under former CEO John Donahoe flopped. However, after offering guidance for the first quarter of the new fiscal year that topped expectations, management seemed to give investors a ray of hope for the first time in years. As expected, fourth-quarter results were ugly, but they still topped expectations. Revenue fell 12% to $11.1 billion, but that was ahead of $10.72 billion, and gross margin contracted by 440 basis points to 40.3% due to increased discounts to clear inventory and a shift to the wholesale channel. On the bottom line, the company reported earnings per share of just $0.14, down from $0.99 in the quarter a year ago, but that was slightly ahead of expectations of $0.12. The stock was initially flat in response to the results, but then soared when the company gave its guidance for the first quarter. The company expects revenue to be down mid-single digits and sees margins compressing again, calling for gross margins to be down 350 to 425 basis points, including 100 basis points of tariff-related headwinds. It also sees selling, general, and administrative expenses up low single digits. Altogether, the forecast calls for profits to fall sharply again, though the guidance was still better than expected. Management also said it expected tariffs to add $1 billion to its costs for the year. Nike's results and guidance were by no means good, but the company said that headwinds in revenue and margins would moderate after the fourth quarter, and it came through on that forecast. Additionally, CEO Elliott Hill continued to tout the operational turnaround in the business as he's refreshed his management team, flattened the leadership structure, realigning the company's management teams. Nike has rightsized classic sneaker brands like Air Force 1, Dunk, and Air Jordan 1, and It's seeing momentum in key businesses like running, which grew high-single digits in the quarter. Its launch of Las Vegas Aces star A'ja Wilson's first signature shoe sold out in three minutes on Nike Digital in North America. It's also improving wholesale relationships with key partners like Dick's Sporting Goods and JD Sports in Europe, where it's seeing increased sell-through around its products like its training collection and Air Max 95. Finally, events like the After Dark run series in Los Angeles have helped re-ignite excitement around the brand in local markets and boost sales. In addition to the surge in the stock, Nike received a chorus of positive analyst notes and price target increases, and HSBC upgraded the stock to buy. It's clear that Wall Street believes a turnaround is under way, and it's easy to see why. Much of Nike's challenges under Donahoe were self-inflicted, including neglecting wholesale partners, shifting too much to performance marketing over brand marketing, and relying on classic brands while it overlooked innovation. Even after Friday's jump, the stock is still down nearly 60% from its all-time high. However, Nike is still likely years away from returning to its previous heights given that it barely reported a profit in the fourth quarter and the first quarter is likely to be the same. with revenue still declining as well. In other words, Nike does look like a buy, but investors will have to be patient. There are some potentially positive catalysts for the company coming, including the expected launch of Caitlin Clark's signature shoe, which is in the works, and Nike's new product ready for next year's World Cup in North America. With earnings impaired, Nike's valuation will look ugly for at least the next year, but its business should be able to get back to its previous heights and the stock should as well with enough time. Before you buy stock in Nike, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 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 $713,547!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $966,931!* Now, it's worth noting Stock Advisor's total average return is 1,062% — a market-crushing outperformance compared to 177% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 30, 2025 HSBC Holdings is an advertising partner of Motley Fool Money. Jeremy Bowman has positions in Nike. The Motley Fool has positions in and recommends Nike. The Motley Fool recommends HSBC Holdings. The Motley Fool has a disclosure policy. Did Nike's Turnaround Just Begin? was originally published by The Motley Fool
Globe and Mail
3 days ago
- Business
- Globe and Mail
Is It Time to Just Buy Nike Stock as a Turnaround Takes Hold?
It's been frustrating to be a Nike (NYSE: NKE) investor the past few years, but investors cheered after new CEO Elliott Hill indicated that the worst was now behind the company after it reported its fiscal fourth quarter results. Nike shares surged on the results, which topped low expectations, although the stock is still down on the year and more than 20% lower over the past five years. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Let's delve into Nike's recent earnings to see why now is a good time to pick up shares in the iconic sneaker and apparel maker. The worst is over Hill, who has been on the job for less than a year, has been working hard to help turn around Nike's business following the missteps of former CEO John Donahoe. Hill's predecessor neglected innovation and pushed the company's classic footwear segment, which consists of brands like Air Jordan and Air Force 1. He also made a big direct-to-consumer push while neglecting important wholesale relationships. Hill has been working to rewind the damage done by Donahoe through his Win Now action plan. The main tenet of his plan is to return Nike to its innovation roots. He has reorganized the business to drive sports-specific innovation across its three main brands: Nike, Jordan, and Converse. The company has seen some early traction with new innovation, with its Vomero 18 running shoe becoming a $100 million-plus franchise with strong sell-through just 90 days after launch. The company is also working to mend its relationship with wholesalers. On this end, it recently announced a new partnership with Amazon, where the e-commerce giant will carry a select assortment of Nike footwear, apparel, and accessories. Nike also hired retail marketing, visual merchandising, and account managers to work with large wholesalers to help with their presentations and create better consumer connections. In addition, the company is looking to implement sharper marketplace segmentation in order to serve its customers at different price points. At the same time, it is looking to position Nike Digital and Nike Direct as premium destinations. This means you might be able to get some lower-priced Nike products at a retailer like Kohl's, while Nike will have its high-end products with the newest technology on its apps and in its stores. While Nike's actual results were still weak, Hill said it's time to turn the page and that he expects Nike's results to improve moving forward. For fiscal Q4, Nike's revenue declined 12% to $11.1 billion, with Nike brand revenue down 11% to $10.8 billion. Nike Direct revenue sank 14% to $4.7 billion, as digital sales collapsed 26%. This is largely due to the company repositioning its digital app as a premier destination. Wholesale revenue, meanwhile, dropped 9% to $6.4 billion. China remained a weak spot, with revenue sinking 21% in the quarter to $1.5 billion. Nike has been heavily discounting in China to reset its inventory. North America revenue dipped 11% to $4.7 billion, with apparel sales down 7% and footwear revenue falling 13%. EMEA (Europe, Middle East, and Africa) sales sank 9%, while Asia Pacific and Latin America sales decreased by 8%. Heavy discounting to clear inventory continued to weigh on Nike's gross margins, which fell 440 basis points to 40.3%. Between declining sales and gross margins, its earnings per share (EPS) plunged 86% in the quarter to $0.14. The company said that tariffs would be a significant new cost headwind, representing an estimated $1 billion in gross costs. It said the tariffs would hurt its gross margin by 75 basis points this fiscal year, with the bigger impact in the first half. It is currently working with suppliers and retail partners to mitigate the costs and impact on consumers. Is Nike stock a buy? While Nike's progress has not yet shown up in its results, Hill is helping lay the groundwork for the company to get back on track. He's been leaning into innovation, rebuilding wholesale partnerships, repositioning Nike's app and stores as premium destinations, and working to segment the brand into both premium and core offerings depending on the channel. While the stock trades at a pretty hefty valuation, with a forward price-to-earnings (P/E) ratio of around 39 times analysts' 2026 estimates, that's largely because Nike's earnings have been depressed. If Hill can get Nike's EPS back to the $3.73 it was in fiscal year 2024, the stock would trade at under 20 times earnings. Nike still has work to do, but now could be a good opportunity to buy the stock when the company is showing signs of a turnaround and the stock is still down on the year. Should you invest $1,000 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 $713,547!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $966,931!* Now, it's worth noting Stock Advisor 's total average return is1,062% — a market-crushing outperformance compared to177%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 23, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Geoffrey Seiler has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Nike. The Motley Fool has a disclosure policy.
Yahoo
3 days ago
- Business
- Yahoo
Is It Time to Just Buy Nike Stock as a Turnaround Takes Hold?
Nike shares jumped higher as the company indicated the worst is over. The company has been laying the foundation to improve its business moving forward. With earnings depressed, now could be a good time to buy the stock. 10 stocks we like better than Nike › It's been frustrating to be a Nike (NYSE: NKE) investor the past few years, but investors cheered after new CEO Elliott Hill indicated that the worst was now behind the company after it reported its fiscal fourth quarter results. Nike shares surged on the results, which topped low expectations, although the stock is still down on the year and more than 20% lower over the past five years. Let's delve into Nike's recent earnings to see why now is a good time to pick up shares in the iconic sneaker and apparel maker. Hill, who has been on the job for less than a year, has been working hard to help turn around Nike's business following the missteps of former CEO John Donahoe. Hill's predecessor neglected innovation and pushed the company's classic footwear segment, which consists of brands like Air Jordan and Air Force 1. He also made a big direct-to-consumer push while neglecting important wholesale relationships. Hill has been working to rewind the damage done by Donahoe through his Win Now action plan. The main tenet of his plan is to return Nike to its innovation roots. He has reorganized the business to drive sports-specific innovation across its three main brands: Nike, Jordan, and Converse. The company has seen some early traction with new innovation, with its Vomero 18 running shoe becoming a $100 million-plus franchise with strong sell-through just 90 days after launch. The company is also working to mend its relationship with wholesalers. On this end, it recently announced a new partnership with Amazon, where the e-commerce giant will carry a select assortment of Nike footwear, apparel, and accessories. Nike also hired retail marketing, visual merchandising, and account managers to work with large wholesalers to help with their presentations and create better consumer connections. In addition, the company is looking to implement sharper marketplace segmentation in order to serve its customers at different price points. At the same time, it is looking to position Nike Digital and Nike Direct as premium destinations. This means you might be able to get some lower-priced Nike products at a retailer like Kohl's, while Nike will have its high-end products with the newest technology on its apps and in its stores. While Nike's actual results were still weak, Hill said it's time to turn the page and that he expects Nike's results to improve moving forward. For fiscal Q4, Nike's revenue declined 12% to $11.1 billion, with Nike brand revenue down 11% to $10.8 billion. Nike Direct revenue sank 14% to $4.7 billion, as digital sales collapsed 26%. This is largely due to the company repositioning its digital app as a premier destination. Wholesale revenue, meanwhile, dropped 9% to $6.4 billion. China remained a weak spot, with revenue sinking 21% in the quarter to $1.5 billion. Nike has been heavily discounting in China to reset its inventory. North America revenue dipped 11% to $4.7 billion, with apparel sales down 7% and footwear revenue falling 13%. EMEA (Europe, Middle East, and Africa) sales sank 9%, while Asia Pacific and Latin America sales decreased by 8%. Heavy discounting to clear inventory continued to weigh on Nike's gross margins, which fell 440 basis points to 40.3%. Between declining sales and gross margins, its earnings per share (EPS) plunged 86% in the quarter to $0.14. The company said that tariffs would be a significant new cost headwind, representing an estimated $1 billion in gross costs. It said the tariffs would hurt its gross margin by 75 basis points this fiscal year, with the bigger impact in the first half. It is currently working with suppliers and retail partners to mitigate the costs and impact on consumers. While Nike's progress has not yet shown up in its results, Hill is helping lay the groundwork for the company to get back on track. He's been leaning into innovation, rebuilding wholesale partnerships, repositioning Nike's app and stores as premium destinations, and working to segment the brand into both premium and core offerings depending on the channel. While the stock trades at a pretty hefty valuation, with a forward price-to-earnings (P/E) ratio of around 39 times analysts' 2026 estimates, that's largely because Nike's earnings have been depressed. If Hill can get Nike's EPS back to the $3.73 it was in fiscal year 2024, the stock would trade at under 20 times earnings. Nike still has work to do, but now could be a good opportunity to buy the stock when the company is showing signs of a turnaround and the stock is still down on the year. Before you buy stock in Nike, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 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 $713,547!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $966,931!* Now, it's worth noting Stock Advisor's total average return is 1,062% — a market-crushing outperformance compared to 177% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Geoffrey Seiler has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Nike. The Motley Fool has a disclosure policy. Is It Time to Just Buy Nike Stock as a Turnaround Takes Hold? was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
18-06-2025
- Health
- Yahoo
Hadley Launches Donahoe Center to Expand Emotional Support for Vision Loss
$1 million gift increases access to free help for people navigating vision loss WINNETKA, Ill., June 18, 2025 /PRNewswire/ -- As the baby boom generation ages, the number of Americans facing age-related vision loss is on the rise. Hadley, a national nonprofit based in suburban Chicago helping older adults experiencing visual impairment, is launching the Donahoe Center for Support to strengthen emotional and social resources for this growing population. Named in honor of longtime Hadley trustee Tom Donahoe, the Donahoe Center broadens access to Hadley's emotional support services, which include social workers, peer connections, and multimedia content such as videos and podcasts—all available for free online, by phone, and by mail. "Vision loss affects more than what you see—it impacts confidence, connection, and mental health," said Johnjoe Farragher, President and CEO of Hadley. "The Donahoe Center for Support strengthens Hadley's ability to help individuals rediscover hope, purpose, and belonging." Studies have linked vision loss later in life with depression, anxiety, and other mental health concerns. And according to the National Eye Institute, within the next five years, nearly 20 million Americans are expected to experience uncorrectable vision loss due to glaucoma, macular degeneration, diabetic retinopathy, and other eye conditions. To meet this challenge, Hadley aims to assist one million people by 2030. Through the Donahoe Center, Hadley will extend its outreach to older adults with vision loss, improve access to social and emotional support, and expand on-demand content that fosters emotional well-being. The Donahoe Center is made possible through a $1 million gift from the Donahoe children: John Donahoe, Martha Gallo, and Susan Gally. "Our dad loved people and had a way of making a human connection," said John Donahoe. "What's remarkable about Hadley is how they use technology not to dehumanize, but to deepen those connections and scale them to reach many more people. My dad would be delighted that human connection isn't getting lost; it's actually being enhanced." To learn more about the Donahoe Center for Support, visit About Hadley Hadley provides both practical help and social/emotional support to older adults adjusting to vision loss, empowering them to adapt and thrive. Founded in 1920, Hadley currently serves more than 150,000 individuals across the country and around the world. Visit for more. Contact Information: Burke Patten, Marketing Director, 396716@ 847-784-2869. View original content to download multimedia: SOURCE Hadley Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
