Fitness financials: Town Sports downgraded, plus Nike

Town Sports stock was downgraded by Stifel Nicolaus, and Nike announced a $5 billion buyback program.
Author:
Updated:
Original:

Town Sports downgraded by Stifel Nicolaus

An analyst downgraded Town Sports International Holdings (Nasdaq: CLUB) to "Hold" from "Buy" based on concerns about job losses on Wall Street.

New York is home to about two-thirds of Town Sports' base, and though the financial sector represents only a fraction of the city's employment, Stifel Nicolaus analyst Thomas Shaw wrote in a client note that he expects membership to decline following the sector's fallout. Because of the contractual nature of club membership, he expects the impact to be felt in future quarters.

But Shaw noted improvements in customer service and energy monitoring, and the addition of in-house laundry should help the company in the long term.

The company's largest shareholder also filed forms to distribute its shares to limited partners. The disposal of those shares could create additional pressure in coming quarters.

Stifel lowered its fiscal 2008 earnings estimate on Town Sports by $0.02 to $0.82 per share. For the 2009 fiscal year, Stifel expects earnings of $0.90 per share, down from its earlier estimate of $0.97 per share.



Nike announces $5 billion buyback program


Nike (NYSE: NKE) said its board approved a four-year, $5 billion buyback program. It said the repurchase of $5 billion in Class B common stock will begin following completion of its current $3 billion buyback program.

Nike had about 492.4 million shares of Class B common stock outstanding as of Aug. 31.

"Over the past 10 years, Nike has returned $5.5 billion to shareholders through the repurchase of more than 157 million shares," CEO Mark Parker said in a statement.

Standard & Poor's Equity Research said the buyback will provide "support to the shares in a volatile market."

Citi analyst Kate McShane said in a research note that the share repurchases "could be a big catalyst for the stock in this environment. It demonstrates the strength of Nike's balance sheet (and) the confidence it has in its business."

McShane reiterated a "Buy" rating on shares of the company, saying Nike is one of the strongest names in the sector based on the strength of its balance sheet and ability to gain market share despite a challenging economic environment.

Nike is slated to report fiscal first-quarter earnings on Sept. 24.

For more information about any public company on this page or its financial reports, as well as to view stock prices updated every 15 minutes, visit the SNEWS® Stock Market Updates. Click on: www.snewsnet.com/cgi-bin/snews/stock_report.html.

Related

Fitness financials: Brunswick downgraded by research firm, plus Town Sports Int'l

Brunswick downgraded by research firm Brunswick (NYSE: BC), parent of Life Fitness, was downgraded by Rochdale Securities on Sept. 15 from "buy" to "hold." Company shares dropped $0.60 to close at $9.39. Town Sports hires VP of sales and marketing Town Sports International ...read more

Fitness financials: Town Sports trims Q4 losses, plus Nike, Garmin

Town Sports trims Q4 losses; appoints new CEO Town Sports International Holdings (Nasdaq: CLUB), owner of fitness clubs in New York, Boston, Washington and Philadelphia, said it trimmed its fourth-quarter losses due mainly to the lack of a goodwill impairment charge. For the ...read more

Fitness financials: Nautilus to acquire Chinese contract manufacturer, plus Town Sports, Under Armour, adidas/Reebok

Nautilus to acquire Chinese contract manufacturer Nautilus (NYSE: NLS) signed a purchase option agreement to acquire the assets of its largest contract manufacturer, Land America Health and Fitness Co., Ltd., which is based in Xiamen, China. Land America has manufactured the ...read more

Fitness financials: Forzani reports strong back-to-school sales, plus Nike, Town Sports, Finish Line

Forzani reports strong back-to-school salesFor the back-to-school selling season, the Forzani Group Ltd. (TSX: FGL), Canada's largest national retailer of sporting goods, reported retail system sales for the six-week period increased 7.0 percent over the same period last year. ...read more

Fitness financials: Town Sports downgraded on expense concerns, plus Big 5, Payless/Stride Rite, Iconix, Under Armour

Town Sports downgraded on expense concernsA Credit Suisse analyst downgraded shares of Town Sports International (Nasdaq: CLUB), saying the company's stock is priced right and its second-quarter results could disappoint investors. Paul Lejuez lowered his rating to "Neutral" from ...read more

Fitness financials: Nautilus shares hit new low after analyst downgrade, plus Life Time Fitness/Town Sports, Big 5, Forzani, Sport Chalet, Wal-Mart, Costco

Nautilus shares hit new low after analyst downgrade Shares of Nautilus (NYSE: NLS) fell to a new 52-week low on Jan. 10 after an analyst downgraded the company on restrained consumer spending and obstacles facing its turnaround plan. Marc Bettinger of Stanford Group Co. said ...read more

Fitness financials: Nike downgraded on global demand slowing in future

Nike downgraded on global demand slowing in future Nike (NYSE: NKE) was downgraded by a Banc of America Securities analyst on concerns of softening global demand. Analyst Camilo Lyon said in a note that trends in the past two months, such as a recessionary state in Western ...read more

Fitness financials: Cybex 3Q profit jumps on tax benefit, plus Brunswick, Amer Sports, Life Time Fitness, Forzani, GSI, Nike

Cybex 3Q profit jumps on tax benefit Cybex International (Nasdaq: CYBI) said third-quarter profit jumped, boosted by a reduction of a reserve for taxes. The company reported income of $4.6 million, or $0.25 per share, compared with $503,000, or $0.03 per share, in the year-ago ...read more

Fitness financials: Town Sports sinks to new 52-week low following analyst downgrades, plus Nautilus, Under Armour, The Sports Club, Big 5, Iconix, Crocs

Town Sports sinks to new 52-week low following analyst downgrades Despite increases in its third-quarter sales and profit, Town Sports International Holdings (Nasdaq: CLUB) came in below analyst expectations, prompting several downgrades. Its stock tumbled to a new 52-week low on ...read more