Nike Has One of the Best Upsides among Sportswear Stocks
2017 hasn’t been a great year for sportswear stocks so far. Lululemon Athletica, Under Armour, and Columbia Sportswear have fallen 29%, 16.5%, and 4.7% year-to-date.
Nike is covered by a total of 35 analysts, who have collectively rated the stock a 2.2 on a scale of 1 (or “strong buy”) to 5 (or “sell”).
Nike, the largest sportswear manufacturer in the world, clocked total sales of $25.7 billion in the first nine months of fiscal 2017.
As discussed, Nike (NKE) will report its fiscal 4Q17 results on June 29, 2017. Its earnings during the quarter are expected to rise 2% YoY (year-over-year) to $0.50 per share.
Oregon-based Nike is slated to release its results for fiscal 4Q17 after the market closes on June 29, 2017. Its earnings per share are expected to rise 2% year-over-year.
Lululemon (LULU) stock is currently trading at a one-year forward price-to-earnings ratio of 23x versus a three-year average of 28x.
Of the analysts who cover LULU, 49% recommended holding the stock.
For 2Q17, LULU’s earnings per share are expected to land in the $0.33–$0.35 range (excluding the Ivivva restructuring impact) versus $0.38 in 1Q16.
Lululemon’s (LULU) adjusted operating margin expanded 50 basis points to 12.1% of sales.
Lululemon plans to operate its Ivivva business primarily through the digital channel and is looking to close 40 of its 55 stores.
Lululemon’s (LULU) 1Q17 top line was driven by a 10% increase in square footage.
Lululemon Athletica (LULU) reported its 1Q17 results on June 1, 2017. LULU delivered better-than-expected performance on earnings and revenues, with a 5% YoY increase in total sales of $520 million.
PVH Corporation (PVH), which reported its 1Q17 results on May 24, 2017, saw its earnings rise 10% YoY (year-over-year) to $1.65 per share.
PVH Corporation (PVH) reported a strong 1Q17 on May 24, 2017, beating analysts’ consensus estimate on both its top and bottom lines.
Tommy Hilfiger is PVH Corporation’s (PVH) largest business. It accounted for 42% of the company’s 1Q17 sales.
Calvin Klein accounted for 38% of PVH Corporation’s (PVH) 1Q17 top line. The business grew 4.5% YoY (year-over-year) during the quarter after falling 1.4% in 4Q16.
The company, which owns the iconic Tommy Hilfiger and Calvin Klein brands, recorded a 3.7% YoY (year-over-year) rise in its top line to $2.0 billion.
Phillips-Van Heusen Corporation (PVH) reported its 1Q17 results after the market closed on May 25, 2017. The company delivered beats on its top and bottom lines.
Gap (GPS) has paid dividends and repurchased its shares regularly, supported primarily by its solid cash balance.
Of the 28 analysts rating Gap, 68.0% are recommending a “hold” for the stock, 11.0% are recommending a “buy,” and 21.0% are suggesting a “sell.”