Nike (NKE, $82.92) faces headwinds in North American market; but beats fiscal Q3 earnings estimate
Nike Inc. reported lower-than-expected sales in North America in its fiscal third quarter, even as earnings beat analysts’ estimates.
In North America, the sports shoe giant's sales grew +7 percent year-over-year to $3.81 billion (excluding currency changes) in the quarter, which was lower than what some analysts’ expected. Nike’s domestic business apparently continues to feel pressure from rival companies like Under Armour, Adidas and Vans.
Growth in international sales fared better. In Europe, the Middle East and Africa, sales grew +12% (excluding currency changes), as mentioned by Nike. Revenue in China surged +24%. Sales grew +14% in Asia Pacific and Latin America.
According to Nike, its revenue from Converse shoes declined -2% year-over-year to $463 million, largely due to softening sales in the U.S. and Europe.
Nevertheless, the company’s total adjusted earnings of 68 cents per share surpassed analysts’ estimates of 65 cents per share (based on Refinitiv data). Total revenue increased +7% year-over-year to $9.611 billion, which was almost in line with analysts’ expected $9.612 billion. Nike said that its digital business grew +36% year-over-year.
The shoe maker bought back 9.8 million shares, worth $754 million, during the quarter.
NKE in downward trend: price may drop because broke its higher Bollinger Band on May 12, 2025
NKE broke above its upper Bollinger Band on May 12, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options. The A.I.dvisor looked at 35 similar instances where the stock broke above the upper band. In of the 35 cases the stock fell afterwards. This puts the odds of success at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on June 17, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on NKE as a result. In of 90 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for NKE turned negative on June 13, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 45 similar instances when the indicator turned negative. In of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where NKE declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
NKE moved above its 50-day moving average on May 27, 2025 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for NKE crossed bullishly above the 50-day moving average on May 21, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 15 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where NKE advanced for three days, in of 295 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 206 cases where NKE Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: NKE's P/B Ratio (9.862) is very high in comparison to the industry average of (3.082). P/E Ratio (27.224) is within average values for comparable stocks, (28.555). Projected Growth (PEG Ratio) (2.032) is also within normal values, averaging (1.991). Dividend Yield (0.015) settles around the average of (0.036) among similar stocks. P/S Ratio (2.762) is also within normal values, averaging (1.500).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. NKE’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. NKE’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 76, placing this stock worse than average.
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General Information
a maker of athletic footwear and apparel
Industry ApparelFootwear
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