Can NIKE's International Unit Outrun Global Retail Volatility?

NIKE, Inc. NKE is a globally recognized American brand specialized in athletic footwear, apparel and sports equipment. With presence in more than 190 countries worldwide, NKE leverages its iconic branding, innovation-led product development and athlete partnerships to maintain a dominant position in the global sportswear market.The company’s vast international presence serves as a key growth engine, contributing to its revenue mix and helping to mitigate geographic concentration risk amid global economic volatility. NIKE’s International division is facing headwinds from global retail volatility, soft consumer demand and structural cost pressures such as tariffs and unfavorable currency movements. The near-term outlook remains cautious with soft revenues and margins internationally.With the holiday order book now in hand, the company has increased visibility into the next phase of its product portfolio transition. Management noted that the holiday order book is up year over year for fiscal 2026, with growth in North America, EMEA and APLA partly offset by Greater China.Although international momentum for the near term seems challenged, NIKE’s strategic playbook offers a clear path toward recovery in the long term. NIKE’s globally expansive supply chain is designed to be responsive and resilient. NKE’s aggressive “Win Now” initiatives, product innovation and partner-led distribution improvements might offer further aid.NKE’s Competition in the Global Arenaadidas AG ADDYY and lululemon athletica inc. LULU are the key companies competing with NIKE in the global market.adidas is actively pushing to expand its share in the global footwear market through product innovation, strategic collaborations and bold marketing. While recent challenges, especially in Greater China, have impacted performance, the brand remains committed to global diversification. Its regional strategies are rooted in local consumer insights, digital acceleration and tailored offerings, all aimed at reigniting growth and reinforcing its position as a global leader in sportswear.lululemon is gaining strong traction in international markets, including Mainland China and the Rest of the World, as the brand connects well with customers globally. In first-quarter fiscal 2025, LULU’s total international revenues increased 19% year over year and 20% in constant currency. Driven by new guest acquisition, low markdown dependence and rising brand awareness, the brand sees significant global potential. lululemon aims to grow international revenues to nearly 50% of total sales and quadruple 2021 levels by the end of 2026.NKE’s Price Performance, Valuation and EstimatesShares of NIKE have lost 4.8% year to date compared with the industry’s decline of 7.8%.Image Source: Zacks Investment ResearchFrom a valuation standpoint, NKE trades at a forward price-to-earnings ratio of 39.93X compared with the industry’s average of 29.12X.Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for NKE’s fiscal 2025 earnings implies a year-over-year plunge of 22.7% while that for fiscal 2026 indicates growth of 55%. The company’s EPS estimate for fiscal 2025 and fiscal 2026 has moved down in the past 30 days.Image Source: Zacks Investment ResearchNIKE stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NIKE, Inc. (NKE): Free Stock Analysis Report lululemon athletica inc. (LULU): Free Stock Analysis Report Adidas AG (ADDYY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks