Nike could be re-rated lower as an apparel company with falling revenue and EPS that is struggling to show CEO Elliott Hill's turnaround is taking root after two years. Q1 revenue missed at $11.21B, FY27 revenue is guided down by a high-single-digit percentage versus a 2% expected decline, and adjusted EPS guidance of $1.15-$1.35 sits well below the $1.65 consensus, with weakness in China, sportswear and Jordan. Its 26.4x 2027 P/E is low only versus its ~30x history. x.com  x.com 

Nike's business is just not getting better: its products are too pricey and revenue has been flat for five years. Quarterly revenue of $11.21 billion missed the $11.33 billion estimate, EPS slipped to $0.48 from $0.49 a year earlier, and the company lowered its outlook to single-digit growth in 2027. x.com  x.com  x.com 

Nike's brand concerns look priced in; stabilization, not sudden revenue acceleration, is what the speculative long needs. A few good campaigns and a return to large stores could help, though China consumers will be a drag. Short-term EPS is a poor indicator, and customers may return after trying other brands. x.com  x.com 

Nike's situation is worse than expected. x.com 

Nike's guidance for a high-single-digit revenue decline in fiscal 2027 is all investors need to know. x.com 

Nike's valuation pays investors to wait for a turnaround that will take longer than expected. It trades at just 16x earnings, near its lowest valuation ever, with a roughly 5% dividend yield, and would need a 127% rally to regain its 200-week moving average. Revenue is projected to fall another 4% in FY2027, but the business will grow again; the market prices it as if it were disappearing. Unlike Novo Nordisk, Nike faces no patent cliff. x.com  x.com 

Nike looks overvalued at about 25.6x forward earnings for a business guiding to high-single-digit revenue declines. At $32 on $1.25 of EPS, per the lowered guidance @TrendSpider reports, plus a 5% dividend, tobacco stocks like Altria should triple if that is the going rate for shrinking sales. Nike does not merit a tobacco multiple: it angered its distributors, faces more premium rivals and new entrants, has less loyal customers, is no government-mandated duopoly and pays for costly marketing. … Show more

Nike might not bottom until it cuts or eliminates its dividend, since net income is down 75% over five years and it cannot afford the payout. This could be one of the hardest turnarounds ever: it is getting clobbered on all fronts, China won't be coming back soon, products need a serious makeover and it overpays too many pro athletes. It needs to preserve cash, bring in new people and ideas, and find a way to bring excitement back to the brand. x.com  x.com 

Nike's dividend yield, now high versus its ten-year history, is the new question for investors and makes the stock very interesting at these levels. The numbers have not bottomed, guidance was atrocious and parts of the business are getting worse, offset somewhat by better US wholesale. The guidance implies Nike will use some cash to fund the dividend, but it has plenty. The stock remains too expensive on earnings and too cheap on dividend yield. x.com  x.com  x.com  x.com  x.com 

Nike is more expensive than Nvidia while guiding sales down. Nike guided FY27 EPS to $1.15-$1.35 against about $1.67 expected by the Street, putting it at 28x earnings versus Nvidia at 25x. Over five years Nvidia is up 1,013% and Nike down 76%. x.com