Nike announced on September 16 that Alexandre Arnault, deputy chief executive of LVMH's Moët Hennessy division and son of LVMH chairman and chief executive Bernard Arnault, has joined its board. The appointment came in a difficult week for the company: on September 17 UBS cut its price target to $42 from $48, and on September 21 Nike dropped out of the S&P 100, the index of the largest US companies, while remaining in the S&P 500, replaced along with three others by a group of technology names. UBS analyst Jay Sole kept a Neutral rating and said the bank's channel checks show Nike's global sales trend has worsened over the past three months, expecting the first quarter to miss estimates by about five cents a share and seeing Nike guide second-quarter earnings to between 31 and 43 cents, well below the 53 cents the Street expects. Nike reports first-quarter results on October 1, and the shares have lost roughly 43% over the past year, falling to their lowest level in more than a decade.
Nike IncUBS channel checks show Nike's global sales trend has worsened over the past three months.
LVMH Moët Hennessy - Louis Vuitton
UBS Group AGUBS cut Nike's price target to $42 from $48 and kept a Neutral rating, a negative analyst valuation call.
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