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Yahoo
15 hours ago
- Business
- Yahoo
Trending tickers: latest investor updates on Nike, Xiaomi, Cyngn, Spotify, Core Scientific and Unilever
Nike (NKE) shares surged by almost 10% in after-hours trading, fuelled by growing investor optimism that the company's long-awaited turnaround strategy may finally take hold, even as it posted its worst quarterly earnings in over three years. On Thursday, the Oregon-based sportswear giant reported fourth-quarter revenues of $11.1bn (£8bn), surpassing analyst expectations, though it marked the lowest revenue figure since Q3 2022. Net income plummeted 86% to $211m, or 14 cents per share, compared to $1.5bn, or 99 cents per share, in the same period last year—yet still exceeded Wall Street forecasts. Nike's (NKE) chief executive Elliott Hill said: 'The results we're reporting today in Q4, and in FY 25 are not up to the Nike standard." The company also warned that US president Donald Trump's trade tariffs could cost it around an extra $1bn. Amid these results, Mamta Valechha, a consumer discretionary analyst at Quilter Cheviot, remained cautious. 'Nike (NKE) continues to slump, with its fourth quarter the worst in at least two decades. Sales were down 12%, while its operating margin was a meagre 2.9%. The sales themselves had actually come in ahead of really low expectations, producing an earnings beat.' Read more: FTSE 100 LIVE: Stocks higher as US and China sign trade agreement, US says 10 deals imminent Valechha pointed to underlying challenges, adding: 'These troubling numbers, though, suggest that Nike (NKE) may nearly be at rock bottom. The share price rallied strongly in after-market trading as investors are beginning to expect a positive rate of change going forward. It has been a difficult period for Nike following the pandemic, and the threat of tariffs simply is not helping the situation for the company.' Though the company's outlook for the coming quarter remains grim, Valechha noted that the road to recovery would likely be gradual. 'It will be a slow recovery, however. Management is expecting further sales declines and record-low operating margins for Q1. That said, it is setting itself a low bar, hoping to give itself room for manoeuvre and the ability to beat expectations from investors and begin to drive positive momentum back into the business.' Nike's (NKE) strategy to clean up inventory levels and reduce discounting could be pivotal in driving future growth. However, Valechha said that fresh, in-demand product launches are crucial. 'Ultimately, Nike needs to produce new products that people want to buy, bringing about increased demand to help bring sales back to the company. The green shoots of recovery are beginning to show themselves in some divisions, but more could soon be on the way.' Shares of Hong Kong-listed Xiaomi ( surged more than 5% to reach a record high on Friday before closing with 3.6% gains, following an overwhelming customer response to its new electric vehicle (EV). The consumer electronics giant, which has quickly expanded into the EV market, is now directly challenging Tesla (TSLA) with its latest offering, the YU7 electric luxury SUV. On Thursday, CEO Lei Jun revealed that the YU7's starting price would be 253,500 yuan ($35,322), undercutting Tesla's (TSLA) Model Y by 10,000 yuan. Tesla's Model Y starts at 263,500 yuan in China. Lei's announcement comes as part of Xiaomi's ( broader strategy to become a serious player in the electric vehicle sector, which has seen intense competition from industry leaders like Tesla. According to Xiaomi ( the YU7 received more than 200,000 orders within just three minutes of its official launch, a sign of the growing consumer appetite for EVs, especially those offering more affordable alternatives to established brands. Ahead of the vehicle's price revelation, analysts at Citi had forecasted that the YU7 would be priced between RMB 250,000-320,000 ($34,800 to $44,590), with expected monthly sales of around 30,000 units. Citi further predicted that as sales gain momentum, Xiaomi ( could reach annual sales figures of between 300,000 and 360,000 units. Cyngn (CYN) shares closed 1271% higher on Thursday and were 30% higher in pre-market trading, after the industrial automation company revealed a partnership with Nvidia (NVDA). The collaboration will see Cyngn's (CYN) vehicles, powered by Nvidia's (NVDA) Isaac robotics platform and the company's proprietary DriveMod software, change automation across industries such as logistics and manufacturing. The partnership is designed to enhance operational safety and efficiency within commercial operations. Cyngn's (CYN) announcement came ahead of its participation at Automatica 2025, a global robotics event where the company, along with several other robotics firms, will demonstrate Nvidia-powered technologies. Automatica is regarded as a prime stage for unveiling AI-driven systems in real-world industrial settings. The meteoric rise in Cyngn's (CYN) stock price marks a stark contrast to the company's recent struggles. Over the past 12 months, Cyngn had endured a near-total loss of its market value, driven by a series of setbacks that included delisting risks and disappointing earnings results over four consecutive quarters. However, the company has since regained Nasdaq (^IXIC) compliance in March 2025, paving the way for its dramatic comeback. Investors are now hoping that this partnership with Nvidia (NVDA) will mark the beginning of a sustained recovery for Cyngn (CYN). Spotify's (SPOT) shares were trading higher ahead of the US market open, following a 5% increase in the previous session, as analysts raised their price target in anticipation of the company's Q2 earnings report. Guggenheim Securities analyst Michael Morris reaffirmed his 'buy' rating on the stock and lifted his 12-month price target to $840 from $725. In a note to clients on Wednesday, Morris expressed confidence in Spotify's (SPOT) growth trajectory. 'Our conviction in the mid- and long-term growth opportunity at the global streaming audio leader remains intact,' he said. Morris highlighted several factors fuelling his optimism, including Spotify's (SPOT) 'core pricing power, potential tier expansion, expanded delivery of audio formats (led by audiobooks and podcasts), and the early-stage commerce opportunity presented by app-store changes". Read more: Why BP could still be a target as Shell quashes takeover rumours Spotify (SPOT) stock reached a milestone on Wednesday, achieving its third consecutive record high. The company is set to release its second-quarter 2025 results and shareholder presentation on Tuesday, 29 July, before the market opens. Core Scientific (CORZ) shares saw a significant boost ahead of the US market open, following a 35% rally on Thursday triggered by a Wall Street Journal report revealing that artificial intelligence infrastructure vendor CoreWeave (CRWV) is in talks to acquire the bitcoin (BTC-USD) mining and hosting provider. The stock was briefly halted after the news broke, then resumed trading with its second-largest rally since Core Scientific's (CORZ) return to the Nasdaq (^IXIC) in January 2024, following a successful reorganisation. The company's biggest one-day jump came in June 2024, when shares surged 40% after the announcement of a major AI business expansion with CoreWeave (CRWV). According to the Journal, citing sources familiar with the situation, a potential transaction could be finalised in the coming weeks, pending any unforeseen obstacles. The deal would deepen an existing partnership between the two companies, which already includes billions of dollars in contracted commitments. With Thursday's surge, Core Scientific (CORZ) now has a market capitalisation of nearly $5bn, approximately five times the valuation implied by CoreWeave's (CRWV) previously rejected takeover bid from last year. Meanwhile, CoreWeave's stock fell by about 1% on Thursday. Unilever (ULVR.L) is paying $1.5bn to acquire US-based personal care brand Dr Squatch, according to the Financial Times. The FTSE 100-listed (^FTSE) company announced the acquisition on Monday, purchasing Dr Squatch from private equity firm Summit Partners for an undisclosed sum, though sources familiar with the transaction have confirmed the $1.5bn price tag. The deal signals the consumer goods giant's continued focus on upmarket, higher-growth sectors, despite its previous setbacks with razor subscription service Dollar Shave Club. Dr Squatch, known for its "natural" soaps, deodorants, shampoos, and other personal care products, has carved out a niche in the competitive male grooming market. The brand has built momentum through viral marketing campaigns and celebrity endorsements, including an ad with Hollywood actress Sydney Sweeney in a bubble bath and another with boxing legend Mike Tyson taking an ice bath. The brand's products are sold directly to consumers through its website and through third-party retailers, helping it establish a direct-to-consumer business model that has been integral to its rapid growth. For Unilever (ULVR.L), the acquisition marks an effort to recalibrate its portfolio by investing in categories with higher growth potential, particularly in the premium and natural personal care segments. This follows a series of strategic acquisitions aimed at bolstering its position in the fast-growing male grooming 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
Business Insider
2 days ago
- Business
- Business Insider
NKE Earnings: Nike's Financial Results Beat on Top and Bottom Lines
Nike (NKE) has reported Fiscal fourth-quarter financial results that beat Wall Street forecasts across the board. Confident Investing Starts Here: The Beaverton, Oregon-based manufacturer of sneakers and athletic apparel announced earnings per share (EPS) of $0.14, which was slightly above the $0.13 consensus estimate of analysts. Revenue for the quarter totaled $11.10 billion, which beat the $10.72 billion expected on Wall Street. Sales were down 12% from a year earlier. In its earnings release, Nike said that its Fiscal fourth-quarter results represent the 'largest financial impact' from its turnaround strategy and that the headwinds it faces are likely to moderate in coming quarters. 'I am confident in our ability to navigate through this current dynamic and uncertain environment by focusing on what we can control,' said Nike Chief Financial Officer (CFO) Matt Friend. Nike's net income. Source: Main Street Data Turnaround Strategy Nike is in the midst of a multi-year turnaround strategy prompted by declining sales in the key market of China and a lack of consumer enthusiasm for the company's sneakers and brand. Last quarter, the sneaker giant warned that its Fiscal fourth quarter would be the low point of its turnaround under CEO Elliott Hill, who took the helm of the company last October. However, in recent months, Nike's situation has worsened, particularly with U.S. President Donald Trump's import tariffs on products made in Asian countries such as Vietnam and China, where the bulk of Nike's manufacturing occurs. In recent months, Nike has focused on repairing relations with wholesale partners that were severed under previous CEO John Donahoe, and investing in sports innovations and advertisements. NKE stock has declined 35% in the last 12 months. Is NKE Stock a Buy? Nike's stock has a consensus Moderate Buy rating among 25 Wall Street analysts. That rating is based on 13 Buy and 12 Hold recommendations issued in the last three months. The average NKE price target of $71.48 implies 14.26% upside from current levels. These ratings are likely to change after the company's financial results.
Japan Today
2 days ago
- Business
- Japan Today
Nike profits sink but company says it is turning a corner
Nike says it is implementing a 'surgical' price increase in the United States to defray tariff costs Nike reported sharply lower quarterly profits Thursday, but signaled it was past the worst stage of a corporate retooling as it implements "surgical" U.S. price increases to defray tariff costs. The Oregon-based sportswear company, beset with oversupply of merchandise that fell flat with consumers, reported profits of $211 million in its fiscal fourth quarter, down 86 percent from the year-ago period. Revenues fell 12 percent to $11.1 billion, with the steepest declines in Nike's Greater China region. The company had previously telegraphed that Thursday's results would be poor as it implements the "Win Now" initiative to revamp the organization, promote innovation and improve relations with wholesalers. "The fourth quarter reflected the largest financial impact from our Win Now actions, and we expect the headwinds to moderate from here," said Chief Financial Officer Matthew Friend. Friend estimated a gross impact of $1 billion in costs from the U.S. tariffs in place right now. The company aims to lower its share of footwear imported from China to the United States to nine percent from the current 16 percent by the end of its fiscal 2026, Friend said. Nike has also begun "a surgical price increase" in the United States, with "phased implementation" beginning in the fall, said Friend, who added that the company is working with retail and suppliers to minimize the impact on consumers. The comments elaborated on Nike's May 21 announcement of the price increase due to tariffs. The biggest hit to earnings from tariffs will be in the upcoming quarter, the first of Nike's fiscal 2026, Friend said. "We're confident in our ability to fully mitigate these over time," he said. Chief Executive Elliott Hill said recent collaborations with wholesalers Dick's Sporting Goods and JD Sports had resulted in improved sales. "Momentum and confidence are building in North America and EMEA (Europe Middle East Africa)," said Hill, who described progress in some other countries as slower. "China will take longer," he said. Shares of Nike rose 4.7 percent in after-hours trading. © 2025 AFP
Business Times
2 days ago
- Business
- Business Times
Nike profits sink but company says it is turning a corner
[NEW YORK] Nike reported sharply lower quarterly profits on Thursday, but signalled it was past the worst stage of a corporate retooling as it implements 'surgical' US price increases to defray tariff costs. The Oregon-based sportswear company, beset with oversupply of merchandise that fell flat with consumers, reported profits of US$211 million in its fiscal fourth quarter, down 86 per cent from the year-ago period. Revenues fell 12 per cent to US$11.1 billion, with the steepest declines in Nike's Greater China region. The company had previously telegraphed that Thursday's results would be poor as it implements the 'Win Now' initiative to revamp the organisation, promote innovation and improve relations with wholesalers. 'The fourth quarter reflected the largest financial impact from our Win Now actions, and we expect the headwinds to moderate from here,' said chief financial officer Matthew Friend. Friend estimated a gross impact of US$1 billion in costs from the US tariffs in place right now. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The company aims to lower its share of footwear imported from China to the United States to nine percent from the current 16 percent by the end of its fiscal 2026, Friend said. Nike has also begun 'a surgical price increase' in the United States, with 'phased implementation' beginning in the fall, said Friend, who added that the company is working with retail and suppliers to minimize the impact on consumers. The comments elaborated on Nike's May 21 announcement of the price increase due to tariffs. The biggest hit to earnings from tariffs will be in the upcoming quarter, the first of Nike's fiscal 2026, Friend said. 'We're confident in our ability to fully mitigate these over time,' he said. Chief executive Elliott Hill said recent collaborations with wholesalers Dick's Sporting Goods and JD Sports had resulted in improved sales. 'Momentum and confidence are building in North America and EMEA (Europe Middle East Africa),' said Hill, who described progress in some other countries as slower. 'China will take longer,' he said. Shares of Nike rose 4.7 per cent in after-hours trading. AFP
Yahoo
2 days ago
- Business
- Yahoo
Nike profits sink but company says it is turning a corner
Nike reported sharply lower quarterly profits Thursday, but signaled it was past the worst stage of a corporate retooling as it implements "surgical" US price increases to defray tariff costs. The Oregon-based sportswear company, beset with oversupply of merchandise that fell flat with consumers, reported profits of $211 million in its fiscal fourth quarter, down 86 percent from the year-ago period. Revenues fell 12 percent to $11.1 billion, with the steepest declines in Nike's Greater China region. The company had previously telegraphed that Thursday's results would be poor as it implements the "Win Now" initiative to revamp the organization, promote innovation and improve relations with wholesalers. "The fourth quarter reflected the largest financial impact from our Win Now actions, and we expect the headwinds to moderate from here," said Chief Financial Officer Matthew Friend. Friend estimated a gross impact of $1 billion in costs from the US tariffs in place right now. The company aims to lower its share of footwear imported from China to the United States to nine percent from the current 16 percent by the end of its fiscal 2026, Friend said. Nike has also begun "a surgical price increase" in the United States, with "phased implementation" beginning in the fall, said Friend, who added that the company is working with retail and suppliers to minimize the impact on consumers. The comments elaborated on Nike's May 21 announcement of the price increase due to tariffs. The biggest hit to earnings from tariffs will be in the upcoming quarter, the first of Nike's fiscal 2026, Friend said. "We're confident in our ability to fully mitigate these over time," he said. Chief Executive Elliott Hill said recent collaborations with wholesalers Dick's Sporting Goods and JD Sports had resulted in improved sales. "Momentum and confidence are building in North America and EMEA (Europe Middle East Africa)," said Hill, who described progress in some other countries as slower. "China will take longer," he said. Shares of Nike rose 4.7 percent in after-hours trading. jmb/ksb/dw 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
