91.30 +0.01 (0.01%)
After hours: 7:59PM EST
|Bid||91.15 x 800|
|Ask||91.30 x 1300|
|Day's range||89.57 - 91.55|
|52-week range||66.53 - 96.87|
|Beta (3Y monthly)||0.84|
|PE ratio (TTM)||34.09|
|Earnings date||18 Dec 2019 - 23 Dec 2019|
|Forward dividend & yield||0.88 (0.98%)|
|1y target est||102.74|
Nike Direct President Heidi O’Neil joined Yahoo Finance’s YFi AM to talk about the swoosh brand’s continued push into digital and why it ended its pilot with Amazon.
(Bloomberg) -- Nike Inc. is breaking up with Amazon.com Inc.The athletic brand will stop selling its sneakers and apparel directly on Amazon’s website, ending a pilot program that began in 2017.The split comes amid a massive overhaul of Nike’s retail strategy. It also follows the hiring of ex-EBay Inc. Chief Executive Officer John Donahoe as its next CEO -- a move that signaled the company is going even more aggressively after e-commerce sales, apparently without Amazon’s help.“As part of Nike’s focus on elevating consumer experiences through more direct, personal relationships, we have made the decision to complete our current pilot with Amazon Retail,” the company said in a statement. “We will continue to invest in strong, distinctive partnerships for Nike with other retailers and platforms to seamlessly serve our consumers globally.”Some big brands shun Amazon’s platform, where fakes flourish and unauthorized sellers undercut prices -- a recipe that diminishes the value of sought-after labels. The unraveling of the Nike arrangement threatens to reinforce retailers’ unease. Under the pilot program, Nike acted as a wholesaler to Amazon, rather than just letting third-party merchants hawk its products on the site.Amazon operates an online marketplace, essentially a digital mall where merchants can sell products. More than half of all goods sold on Amazon come from independent merchants who pay the Seattle-based company a commission on each sale. Amazon also operates as a traditional retailer, buying goods from wholesalers and selling them to customers.Nike said it will continue to use Amazon’s cloud-computing unit, Amazon Web Services, to power its apps and Nike.com services.Amazon, through a spokeswoman, declined to comment. The company has been preparing for the move, according to two people familiar with the matter. It has been recruiting third-party sellers with Nike products so that the merchandise is still widely available on the site, they said. Amazon has also been working to stem the flow of counterfeits on the site through various initiatives, including one project that lets brands put unique codes on their products to make it easier to identify fakes.Nike shares rose as much as 1.4% in New York trading Wednesday, while Amazon was off as much as 0.6%.‘Enormous Reach’The question now is whether other Amazon partners follow Nike’s lead. Few other brands possess the kind of muscle Nike has, so it may be harder for them to leave.“Nike has enormous reach and its products are in demand, so it can afford to be selective about where its products are distributed because customers will come find Nike where it is offered,” said Neil Saunders, an analyst at GlobalData Retail. “I don’t think as many brands can be as selective as Nike.”For years, the only Nike products sold on Amazon were gray-market items -- and counterfeits -- sold by others. Nike had little control over how they were listed, what information about the product was available and whether the products were even real.That changed in 2017, when Nike joined Amazon’s brand registry program. Executives hoped the move would give them more control over Nike goods sold on the e-commerce site, more data on their customers and added power to remove fake Nike listings. The news of the Amazon tie-up, which Nike executives called a “small pilot,” sent shoe-retailer stocks tumbling and left many wondering if other major Amazon holdouts would quickly follow.But Nike reportedly struggled to control the Amazon marketplace. Third-party sellers whose listings were removed simply popped up under a different name. Plus, the official Nike products had fewer reviews, and therefore received worse positioning on the site.Leaving Amazon won’t necessarily solve Nike’s problems, which represent a big brand struggling to adapt to selling products in the digital age, said James Thomson, a former Amazon employee who now helps brands sell products online through Buy Box Experts.“Just because Nike walks away from Amazon doesn’t mean its products walk away from Amazon and doesn’t mean its brand problems disappear,” Thomson said. “Even if every single Nike product isn’t on Amazon, there will be enough of a selection that someone looking for Nike on Amazon will find something to buy.”Fewer PartnersShortly after its Amazon pilot began, Nike unveiled plans to overhaul its retail strategy. With more attention aimed at direct-to-consumer avenues, particularly the Nike app and Nike.com, executives said the company would drastically reduce the number of retailers it partnered with.In 2017, Nike did business with 30,000 retailers around the world. Elliott Hill, currently the company’s head of consumer and marketplace operations, told investors that year that Nike would focus its future efforts primarily on about 40 partners.Nike wasn’t specific on what would separate those 40 partners from what it called “undifferentiated retail.” Reading between the lines, it appeared to want partners that gave its Nike brand separate space -- such as Nordstrom Inc.’s “Nordstrom x Nike” shop on its website -- and was less interested in retailers that just placed Nike alongside its smaller competitors.The Wall Street Journal reported at the time that Amazon was one of those 40 that Nike intended to prioritize.Analysts said physical sporting-goods retailers would benefit from Nike’s departure from Amazon. The pilot program was an “overhang” to the stock valuation of Foot Locker Inc. that’s now removed, Raymond James analyst Matthew McClintock wrote in a note. Michael Baker of Nomura Instinet called Nike’s decision a modest positive for Dick’s Sporting Goods Inc.Foot Locker was down 0.4% at 9:51 a.m. Wednesday in New York trading, while Dick’s was up 0.6%.What Bloomberg Intelligence Says“Nike’s decision to end its wholesale pilot with Amazon.com is likely aimed at putting more focus on its own direct-to-consumer business, which is a key pillar of its Triple Double strategy. We still believe Nike’s goal for 33% of sales to be digital could be attained ahead of 2022.”\--Poonam Goyal, senior retail analystClick here to read the research.About 68% of Nike’s annual sales come from wholesale channels, down from 81% in 2013. Though wholesale is still the bulk of the company’s sales, in that span Nike’s direct business has grown three times faster than top-line revenue.Nike’s departure will rob Amazon’s brand registry program of a big name -- and potentially stoke the concerns of its partners. Nike’s participation had signaled that Amazon was taking the concerns of major brands seriously.Such brands have expressed frustration that Amazon doesn’t do enough to fight counterfeits. They also fear that giving Amazon too much control over prices will devalue their products.Amazon’s foray into private-label products has added to the fears. The company now sells everything from batteries to mattresses to snacks, further complicating the relationship between Amazon and brands.(Updates with shares in ninth paragraph, analyst comments in 21st paragraph.)\--With assistance from Robert Williams.To contact the reporters on this story: Eben Novy-Williams in New York at firstname.lastname@example.org;Spencer Soper in Seattle at email@example.comTo contact the editors responsible for this story: Nick Turner at firstname.lastname@example.org, ;Jillian Ward at email@example.com, John J. Edwards III, Cécile DauratFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Investing.com – Stocks were rising modestly Wednesday on gains for Walt Disney (NYSE:DIS) and Federal Reserve Chairman Jerome Powell's assertion that the central bank can leave interest rates alone for a while. But concerns about the China-U.S. trade dispute was keeping gains in check.
Walmart stock is up over 13% in the last three months. Now, with the firm set to report its Q3 financial results before the opening bell Thursday, let's break down Walmart to see if investors should consider buying WMT shares...
Liverpool Football Club is set to switch its shirt provider in the coming season, from New Balance to Nike. It’s a lucrative deal, which is thought to be worth £70m — or a little over 15 per cent of the club’s current turnover — a year. New Balance have made the club’s shirts since 2015, producing some very popular kits (this year’s black goalkeeper kit and last year’s home number — pictured below — among those most praised by fans).
Wolverine's (WWW) third-quarter 2019 marks seventh straight quarter of positive earnings surprise. Also, management revises its full-year earnings view, keeping revenue projection intact.
Ralph Lauren's (RL) top and bottom lines beat estimates in second-quarter fiscal 2020 on continued investment in brand elevation and other endeavors, strong international business, and expense control.
(Bloomberg Opinion) -- When I became pregnant, I figured plenty of things were going to get harder as my belly grew bigger, such as getting a good night’s sleep or sticking to my workout routine. One thing, however, I did not anticipate: how infuriatingly difficult it would be to find a half-decent outfit.A year ago, I believed the conventional wisdom that maternity clothes have vastly improved since my baby boomer mom and Gen-X cousins were pregnant. Now that I’m shopping for a third-trimester baby bump, I realize my faith was misplaced. The maternity clothing market is a floral-festooned, polyester-laden sartorial wasteland. It utterly fails to account for either the varied lives women lead or the different ways they wish to present themselves. And the shopping experience ranges from maddening to puzzling.View this post on Instagram A post shared by A Pea In The Pod (@apeainthepodmaternity) on Mar 8, 2019 at 12:00pm PSTAll of this amounts to an indefensible and avoidable failure on the part of the beleaguered retail industry. Great maternity departments should be an easy way to attract millennial moms — ostensibly one of the industry’s most coveted demographic groups. True, newcomer websites such as Asos Plc and Boohoo Plc carry garments that reflect actual current trends. But much of what’s out there has a distinct, one-note look I have come to think of as “mommycore”: bland t-shirts, juvenile-looking babydoll frocks, uncomfortably low-cut wrap dresses, and flower patterns that resemble the upholstery on your grandmother’s couch. The industry’s idea of creativity seems to be confined to inane tops stamped with Instagrammable messages like “Milkmachine” and “I like to think wine misses me too.”View this post on Instagram A post shared by Motherhood Maternity (@motherhoodmaternity) on Oct 1, 2019 at 4:26pm PDTWomen embrace all sorts of styles in everyday life — edgy motorcycle jackets, elegant sheath dresses, Supreme-inspired streetwear. But in pregnancy, they have little choice but to sport the mommycore uniform.Need something to project confidence for a big client presentation? Ann Taylor has no maternity suiting to offer you, nor does Express or White House Black Market. Working up a sweat at the gym? Lululemon Athletica Inc. and Nike Inc. will be of little help. Searches for maternity gear on their websites turn up no specially designed products.Now, you might say this is what specialty maternity stores are for: They have outfits for all occasions that accommodate a baby bump. But consider what women are in for when they hit up one of these retailers. Destination Maternity Corp. is the corporate parent of its namesake chain, as well as Motherhood Maternity and A Pea in the Pod. The company’s revenue has nosedived as it struggled to adapt to changing fashion trends, the rise of e-commerce and new competitors. It has had five CEOs in five years, a mess that culminated in an October bankruptcy filing. Put another way, the one company that essentially has had the U.S. specialty maternity market to itself has been spectacularly bad at giving expectant women what they want.And it’s not as if higher-end retailers are doing much better. Poke around the limited selection on the websites of Saks Fifth Avenue or Net-a-Porter, and you might think rich women just don’t get pregnant.It’s more than the narrow clothing choices that are frustrating. The process of selecting maternity wear is a hassle. I appreciate that Macy’s Inc. and Rent the Runway, for example, allow me to sort their online offerings by trimester, a welcome acknowledgment that the clothes which fit me now would’ve made me look like a deflated balloon just a few months ago.But the industry could do much more. More retailers should carry maternity clothes in brick-and-mortar stores instead of restricting them to e-commerce. Ariane Goldman, the founder of maternity-focused startup Hatch, told me she is opening stores because she found that Hatch customers spend three times as much in person than they typically do online. No wonder: When your bust and waist measurements are an ever-growing surprise, it’s especially helpful to try things on before buying.For online customers, product descriptions should clearly explain how a “maternity cardigan” is cut differently than a regular one. Stores such as J. Crew, which curate a selection of regular-size clothes deemed maternity-friendly, should show a picture of how the pieces fit on a pregnant model. They should provide recommendations for whether to go one or two sizes up.These changes are necessary not simply because women deserve better, though they do. They’re needed because they make business sense.Kohl’s Corp., for example, offers a relatively small selection of maternity wear compared with rivals — even though CEO Michelle Gass earlier this year expressed a desire “to gain share among millennials, especially millennial moms.” What better way to get them to give Kohl’s a shot than making them feel fashionable in the run-up to baby’s arrival?Similarly, Macy’s CEO Jeff Gennette has said the chain must do better with women under 40 — exactly the crowd that needs bump-friendly clothes. Yet it has chosen to depend on troubled Destination Maternity for much of its maternity merchandise, with the specialist operating 390 licensed departments in Macy’s stores as of February.I understand that in some ways the maternity market might look unattractive to retailers. The U.S. birth rate has fallen, for one. Maternity is also a category where it’s virtually impossible to get a customer to come back year after year. Once you’re done having kids, you’re done with maternity clothes.But that is simplistic. A future mom who goes to Target Corp. for its maternity department might end up buying a onesie for the baby — and diapers and groceries, too. Gap Inc. has found that maternity clothing customers of its namesake chain are more likely to be loyal to the brand even after their pregnancy is over. The fashion industry is gradually awakening to the power of inclusivity in its products and marketing. More chains are adding plus sizes, using models with diverse body types or shunning airbrushing in ads. And yet, bewilderingly, this new awareness has not translated into paying more attention to the needs of pregnant women.It is a reality I am acutely aware of: The button-up shirtdress I’m wearing as I write this is literally taped together at my belly. It’s my attempt to prolong the life of an item I bought less than two months ago, because I can’t bear any more hours on the internet or at the mall looking at clothes that don’t flatter me or give me confidence.It doesn’t have to be this way. I typically enjoy shopping for new clothes. If retailers try harder, my baby bump — and countless other baby bumps — could be the birth of a new and lucrative customer relationship.To contact the author of this story: Sarah Halzack at firstname.lastname@example.orgTo contact the editor responsible for this story: Michael Newman at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.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/opinion©2019 Bloomberg L.P.
The athletic apparel company reported better-than-expected earnings on Monday, but its stock plunged in the wake of news about a federal accounting probe.
(Bloomberg) -- Under Armour Inc. shares plunged after the company disclosed that federal officials have been probing its accounting practices for more than two years, bringing a fresh headache to investors just as the sports brand prepares for a CEO transition.The athleticwear company also lowered its full-year revenue forecast on Monday, but it raised some other projections after posting solid third-quarter results. The shares fell as much as 17%, the most since July 30, to $17.65 in New York trading.On Sunday, spurred by a report in the Wall Street Journal, the company said that it’s cooperating with investigations by the U.S. Securities and Exchange Commission and the U.S. Department of Justice and doesn’t think it’s done anything wrong.“The company began responding in July 2017 to requests for documents and information relating primarily to its accounting practices and related disclosures, and the company firmly believes that its accounting practices and disclosures were appropriate,” Under Armour said in the statement Sunday. Executives declined to comment further during Monday’s earnings conference call.Investigators from the Justice Department and SEC were questioning people at the sports apparel maker’s base in Baltimore as recently as last week, the Journal reported, citing people familiar with the matter. The probe is focused on whether Under Armour inflated sales from quarter to quarter, the newspaper said.The stock decline represents a buying opportunity as the accounting probe shouldn’t affect investors, according to Stifel analyst Jim Duffy.“While the accounting probe may continue to weigh, we see 2017 practices under a prior CFO as history (albeit unfortunate history) that doesn’t impact potential value for shares” for the next year, Duffy said in a note. Former Chief Financial Officer Chip Molloy left the company in early 2017.The investigation comes at a difficult time for the company, which has been wrestling with increased competition at home and an underperforming share price. It rattled investors in July by warning that full-year revenue would decline in North America. The stock fell 23% since that statement through Friday’s close in New York.Founder Kevin Plank, currently chief executive officer, turned the company from a football-focused startup into a global powerhouse that makes men’s and women’s apparel in dozens of categories -- and even spacesuits.New CEOBut sputtering growth prompted it to embark on a multiyear restructuring plan aimed at regaining its edge. A new CEO, tapped last month from within Under Armour’s ranks, is meant to help get the company back on a growth trajectory. Patrik Frisk, Under Armour’s president since 2017, will take the reins on Jan. 1.Plank, 47, is stepping aside after more than two decades in charge, though he’ll remain on as executive chairman.“We understand that critical to our success, and what will actually get us there, is our ability to focus on ourselves, block out the noise and keep marching forward,” Plank said on the earnings call Monday.The SEC declined to comment, while the Justice Department didn’t immediately respond to a request for comment.Under Armour went public in 2005 and experienced rapid growth, with sales increasing to $5 billion in 2017 from $1.1 billion in 2010. Recently, though, keeping that momentum going has been a struggle.Under Armour’s best year-over-year revenue growth in the past three years came in the first quarter of 2016, when sales climbed 30%. It reported double-digit growth in each quarter of that year, slowing to single-digit rates thereafter. The first decline, a 4% drop from the year-earlier period, was in the third period of 2017.Revenue ForecastUnder Armour said its revenue would rise 2% for the year, down from the previous expectation of a 3% to 4% gain. But it said gross margin would expand and operating income would be at the high end of its previously forecast range.With Monday’s third-quarter results, the company has now beaten earnings expectations in six straight quarters.Though revenue dropped 1% compared with the same period last year, the company’s $1.43 billion in third-quarter sales slightly beat analysts’ estimates. Under Armour’s 4.1% drop in North American revenue also outpaced projections.That said, Under Armour’s performance in its local market has consistently been a thorn in its side. Unlike Nike Inc. and Adidas AG, Under Armour does more than 70% of its business in North America. The company’s domestic struggles have become a bellwether for investors trying to gauge the success of its transformation efforts.Under Armour attributed the lowered full-year revenue forecast to foreign-currency impact and less excess inventory to sell off-price.\--With assistance from Molly Kissler and Frank Connelly.To contact the reporters on this story: Eben Novy-Williams in New York at firstname.lastname@example.org;James Ludden in New York at email@example.comTo contact the editors responsible for this story: Nick Turner at firstname.lastname@example.org, ;Matthew G. Miller at email@example.com, John J. Edwards IIIFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Nov.04 -- John Donahoe, chairman of the board at PayPal and the incoming CEO at Nike, talks about his time at Stanford University, criticism of Silicon Valley, and what he hopes to accomplish at Nike. He talks with Bloomberg's Jason Kelly and Carol Massar.