|Bid||97.94 x 800|
|Ask||97.79 x 900|
|Day's range||95.72 - 98.05|
|52-week range||60.00 - 105.62|
|Beta (5Y monthly)||0.81|
|PE ratio (TTM)||61.24|
|Earnings date||22 Sep 2020 - 28 Sep 2020|
|Forward dividend & yield||0.98 (1.01%)|
|Ex-dividend date||29 May 2020|
|1y target est||110.11|
NIKE (NKE) unveils the Nike Rise concept store in China, which is one of its growing market. The store brings in the best of in-store and digital experiences for customers.
This week’s most eye-popping legal dispute involves the actor Johnny Depp, his ex-wife Amber Heard and extensive disagreements over who hit whom and under the influence of which substances. Let me just say: whatever narcotics Mr Depp took, he does turn up every day in a mask, so he’s more safety-conscious than most UK government ministers. Meantime, we can turn to the more sober dispute between FC Barcelona and Nike.
(Bloomberg Opinion) -- When you return to the gym, your workout will be noticeably different than before the coronavirus lockdown. Don’t plan on pumping iron for more than an hour, or taking a shower. And you can probably forget those trendy boxing classes that have you making contact with your fellow gym-goers.Welcome to the new world of fitness, which will be characterized by social distancing, obsessively wiping down equipment and, for those who don’t want to brave the gym, sessions with a virtual coach on a Peloton bike at home.The Covid-19 pandemic has hit something that we largely take for granted: our health. So people are now likely to spend even more of their incomes on well-being, including staying in shape. But with a plethora of choices, from Zoom yoga to ballet barre via Instagram Live, not all of this money may find its way into the traditional fitness sector.That is likely to lead to a shakeout of an industry that has seen the number of global facilities roughly double over the past 15 years. Many clubs could now close or shrink. Those best placed to survive are the trendy boutiques that can successfully pivot to providing digital content and the no-frills operators that can appeal to cash-strapped fitsters. Some fitness fans can’t wait to get back to the gym. For others, being in close proximity to other people engaging in sweaty exercise is the last place they will feel comfortable. And for now, workout chains remain closed in some parts of the U.S. Clubs in England will be able to open from July 25. Where gyms are trading, they’re limiting the number of people inside at any one time and offering “busyness trackers” on their apps, so customers can decide the best time to visit. At peak hours, people may be asked to book ahead of time, or keep their workouts to an hour. As for showers it’s a mixed picture, depending on particular clubs and locations. Many people are choosing to get changed at home anyway.For gyms, in addition to contending with costly measures to contain the spread of the virus and keep customers feeling safe, it’s a changing landscape in terms of where their customers are and what they may want.Because many fitness centers are located in business districts, there may be far less demand when they reopen as working from home becomes entrenched. Virgin Active, owned by investment holding company Brait SE, whose clubs are mostly in metropolitan areas, looks particularly exposed here. And the new routines people have embraced while at home may lend themselves to working out in one’s kitchen or bedroom, rather than going to the gym at all. Consequently, clubs could face a wave of cancellations.Already, months of closure and higher reopening costs have taken their toll. Bodybuilder favorite Gold’s Gym International Inc. and 24 Hour Fitness Worldwide Inc. have filed for bankruptcy protection. But it is not just the legacy gyms, already caught in the ultimate barbell economy between chic boutiques and budget operators, that are feeling the burn.The boutiques, such as those that specialize in cycling, yoga or Pilates, face unique and acute challenges. The economics of many of these businesses are built around cramming lots of class participants into a tiny space — the kind of set-up people are likely to want to avoid.These fitness outposts are experimenting with ways of hanging onto their members. In a particularly fanciful example, SoulCycle Inc. is offering some outdoor classes in the Hamptons this summer that cost $50 for a single class. In such a posh location, there may be plenty of takers, but that’s hardly a model that can be replicated across the country. And outdoor classes will lose their appeal in the dead of winter.That is why some gyms, both boutiques and big-box outlets, are turning to digital content. Yogaworks Inc., for example, is live-streaming more than 100 daily classes from teachers at their studios all over the U.S. If this becomes really popular, it’s not hard to imagine the company needing to upend its business model, perhaps by reducing its roster of instructors, closing underperforming brick-and-mortar studios and hiring more technologists.Going online is far from a sure bet. It’s a highly competitive space that includes everything from free workouts on YouTube to Nike Inc.’s activity app and subscription programs like Glo and Daily Burn. In the U.K. alone, David Minton of the Leisure Database Company said he counted more than 600 Instagram Live workout classes in one day.It also puts operators in more direct competition with trendy home-workout programs such as the Mirror, which was just acquired by yoga-wear maker Lululemon Athletica Inc. for $500 million, and Peloton Interactive Inc., which has seen such explosive demand for its stationary bikes that it paused advertising back in March while it moved to accelerate its supply chain.The budget sector, which has been booming on both sides of the Atlantic, is not immune to the new pressures either. It faces a future with higher hygiene-related costs, such as the more regular and intensive cleaning of equipment. These may be difficult to accommodate when clubs are typically charging only about 20 pounds ($25) a month. Even so, companies such as Planet Fitness Inc. in the U.S. and Basic-Fit NV in Europe, as well as U.K. operators The Gym Group Plc and Pure Gym Group Plc, are probably best placed. Their clubs tend to be large, and many are located in suburban areas. In some cases, members are younger, and so may be less cautious about coming back. Pure Gym found that when its clubs reopened in Switzerland, people under 30 were three times more likely to return than those over 50. Yes, some people may ditch their subscriptions as the hard economic impact of the lockdowns hits. But no-frills clubs may also benefit from cash-strapped fitness fans trading down.The result is that even the most nimble, well-situated competitors will have to work up more of a sweat to compete in the Covid-19 era. This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.Sarah Halzack is a Bloomberg Opinion columnist covering the consumer and retail industries. She was previously a national retail reporter for the Washington Post.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Following up on its commitment to galvanize its digital model, Nike (NYSE: NKE) is launching the next stage of its digital transformation in the form of a new store concept called Nike Rise. The idea behind the store is to link the digital and in-store shopping experience with the customer's preferences and the community's sporting habits. The concept is powered by data supplied by customers through Nike's apps, combined with information about real-time sporting events in the customer's city.
Nike (NYSE: NKE) and Disney (NYSE: DIS) are two sports stocks to keep an eye on this month. Is Nike in trouble? Nike recently released its third-quarter earnings with sales performing worse than analyst estimates.
(Bloomberg Opinion) -- Once again, we're hearing the familiar predictions of the demise of retail as the pandemic brings on a deluge of store closings, especially for those businesses with too much debt and goods that have fallen out of fashion. As long as the U.S. is running at less than full speed because of the coronavirus -- and perhaps for some time after -- it may be difficult for landlords to fill newly vacant spaces. But long-term trends in retail, hospitality and commercial real estate suggest that in economically stable communities, those spaces should eventually be occupied. It's even possible that the 2020s will accelerate the trend of successful e-tailers expanding into physical locations.The rise in store closures -- one analysis said as many as 100,000 brick-and-mortar locations could shut by 2025 -- are the easy part to think about. Apparel company Brooks Brothers is the latest, filing for bankruptcy yesterday, while Lucky Brand Jeans filed last week. Both have closed stores and struggled with falling sales. Changes in buying patterns brought about by e-commerce along with heavy debt loads have led to the demise of countless retailers during the past decade. Clusters of bankruptcies then bring about concerned articles about the state of the retail industry -- here's one from 2009 after the bankruptcies of Circuit City, Linens 'n Things and Sharper Image. It's natural that this crisis would be seen as another moment of reckoning for retail and the commercial real estate that relies so much on it.But it's important to note that coming into this crisis there's no evidence that physical retail is an industry on death's door or even in secular decline. Retail sales -- after stripping out restaurants and non-store retailers, which includes e-commerce -- have grown modestly for a decade. Total retail employment by 2015 had recovered all of the losses inflicted by the Great Recession and has been largely steady since then, even with all the headlines of stores closing and the proliferation of self-checkout registers. Even as some categories such as electronics and apparel have struggled, others such as health and personal-care retail has continued to grow.Dining and entertainment, which might be considered as experiential retail, has done even better. As a share of total employment, leisure and hospitality jobs have grown for decades despite shifting trends in consumption and technology. Maybe something changed forever with the pandemic, but it seems premature to make that claim.Where retail has struggled most has been in communities with dwindling population and shrinking economic bases. There's nothing magical here -- communities that lose jobs and people lose retail as well, e-commerce or no e-commerce.E-commerce will likely see rapid growth this year because of the pandemic, but for the most part the shift from physical to online retail is happening slowly enough that there's enough time for the adjustment to occur without being too disruptive. It's taken 17 years for e-commerce's market share to grow from 1.8% to 11.8%. And a lot of the retailers that have gone out of business in that period had glaring weaknesses -- Sears and Toys R Us probably were doomed no matter the strength of the economy. But compare them with Nike, Apple and Lululemon, which seem unlikely to close many of their stores.It's also possible that the 2020s will see shifts that benefits physical retail at large, even if that's not necessarily good news for some struggling physical retailers. During the 2010s, lots of stagnant, over-indebted physical retailers closed or went bankrupt while e-commerce took off. But the growth of e-commerce also brought with it rising costs -- for online ads, for warehouse space, and for shipping and delivery costs. In other words, e-commerce's cost advantage may have been temporary.If the cost advantage disappears, e-commerce growth might slow. But turning to physical stores could be a great way for online brands to start letting consumers interact with and experience their brands directly. Store fronts can also be a great way to pick up profitable sales and act as a distribution and return hubs. A temporary glut of vacant storefronts because of the pandemic may be seen in hindsight as a once-in-a-generation opportunity to pick up quality real estate. This doesn't necessarily mean Macy's will see a resurgence, but it might mean that there will be more Amazon and Wayfair physical locations a decade from now.Between the restrictions on in-person shopping amid the pandemic and the spending cuts retailers are making now, it might take a few quarters for this transformation to become more apparent. But as public-health and economic conditions improve, the next land grab for e-commerce winners might be the vacant storefronts left behind by the physical retailers they've conquered.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Conor Sen is a Bloomberg Opinion columnist. He has been a contributor to the Atlantic and Business Insider.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
On the surface, Nike (NYSE: NKE) and Planet Fitness (NYSE: PLNT) appear to have little in common other than a tie to the fitness industry. The difference in this respect is that Nike is many years further down the path than Planet Fitness. Hence, in choosing between these two stocks, investors must decide whether to go with the decades-long track record of Nike or the relatively younger Planet Fitness.
Home Depot (NYSE: HD) proved to be resilient during the pandemic. Importantly, in the post-pandemic long run, Home Depot can stave off Amazon from encroaching on its business. The initiative aims to make it easier for customers to order online and pick up in-store, for example, which is a more profitable transaction for Home Depot compared to shipping.
FC Barcelona is set to pursue Nike for compensation after discovering a defect with new football kits made by the US sportswear maker, resulting in the Spanish club missing out on a crucial shop window at the end of the football season. Fixtures in Spain’s La Liga, postponed during the pandemic, restarted last month with Barcelona officials hoping its players such as Lionel Messi and Antoine Griezmann would return to action wearing the latest design of the club’s red-and-blue shirt.
Every so often a company does something that just makes so much sense, and the deal that Gap (NYSE: GPS) has signed with Kanye West is one of them. Whether you like him or not (or merely shrug and roll your eyes when you hear his name), West bringing his Yeezy line of clothes to Gap is a really smart move for the retailer. While Nike (NYSE: NKE) didn't really need the assist when his first line of Air Yeezy sneakers was introduced back in 2009, it was still a notable development because it was the footwear maker's first non-athlete-branded sneaker.
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Nike (NYSE: NKE) posted robust growth in its digital business last quarter, but it wasn't enough to offset the losses at physical stores. Overall, total revenue dropped 38% year over year due to store closures. During the conference call, management laid out a long-term growth roadmap, outlining specific areas where Nike will be investing during this downturn.
When Nike (NYSE: NKE) reported a 38% revenue decline in the fiscal 2020 fourth quarter, I'm sure more than one investor cringed. In the fourth quarter, Nike's digital sales soared 75% and made up 30% of total revenue.
Economic growth might be weak, with a soft economy made worse by additional outbreaks of COVID-19. The recent earnings report by industry leader Nike (NYSE: NKE) helped illustrate just how strong lululemon athletica's (NASDAQ: LULU) business is today. The apparel specialist only endured a 17% sales decline through early May, while Nike's revenue dove by 38% in its comparable fiscal fourth quarter.
The digital business was 30% of total revenue last quarter and continues to represent a significant growth opportunity for Nike.
NIKE (NKE) reports dismal fourth-quarter fiscal 2020 results due to coronavirus-led store closures. Meanwhile, strong digital sales partly cushion the results.
Nike posted an unexpected loss late Thursday (June 25). It represents its first quarterly deficit in more than two years. The net loss came in at 51 cents per share, when Wall Street had expected a profit of 7 cents per share. Revenue dropped almost 40 percent to just over 6.3 billion dollars. Nike was hurt by closures of department and retail stores. Its wholesale operations, which supply third-party retailers, also ground to a halt. Years of digital investments paid off though. It recorded a 75% jump in online sales as consumers shopped from home. Chief Executive John Donahoe says that’s now the focus. He expects online’s share to rise to 50% of the firm’s sales, from 30% currently. Nike shares sank about 4% in after-hours trading.
Nike reported a surprise quarterly loss for the first time in more than two years in Q4 2020 as lockdowns imposed worldwide to halt the spread of the deadly coronavirus have caused crippling damage.
Nike's disappointing fourth-quarter results reflected the harsh COVID-19 reality facing most retail brands. However, the fundamentals of the Swoosh brand remain strong, with the company hanging its hat on numerous bright spots centered around its digital platforms.