We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Things You Must Know Before NIKE (NKE) Reports Q3 Earnings
Read MoreHide Full Article
NIKE Inc. (NKE - Free Report) is slated to release third-quarter fiscal 2021 results on Mar 18. The leading sports apparel retailer is likely to have witnessed sales growth in the quarter under review. Despite the pandemic-led disruptions; strong digital momentum across all regions has been aiding the company’s top line.
The Zacks Consensus Estimate for fiscal third-quarter revenues is pegged at $10.95 billion, suggesting an 8.4% increase from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for the company’s earnings for the fiscal third quarter is pegged at 75 cents, suggesting a decline of 10% from the year-ago reported figure. Notably, earnings estimates have been unchanged in the past 30 days.
In the last reported quarter, the company delivered an earnings surprise of 23.8%. However, its bottom line significantly lagged estimates, on average, over the trailing four quarters.
NIKE has been benefiting from the shift to digital shopping by consumers due to the pandemic, thanks to its efficient digital ecosystem that comprises its online site as well as commercial and activity apps. The company has been witnessing robust digital sales growth across all regions for the past few months. In the fiscal second quarter, digital sales for the NIKE brand witnessed double-digit growth across EMEA, Greater China and APLA along with triple-digit growth in North America.
The persistence of the digital shopping momentum is likely to have contributed meaningfully to its sales in the third quarter of fiscal 2021. On the last reported quarter’s earnings call, the company noted that the holiday season started on a strong note, with record online sales during the Black Friday week. Moreover, management predicted sequential sales growth for the fiscal third quarter. Also, the gross margin is expected to remain flat during the fiscal third quarter.
Moreover, lower SG&A expenses due to tight operating expense management as well as effective marketing spending on brand and sports events are likely to have aided the bottom line in the fiscal third quarter. Also, a decline in demand-creation expenses due to the shift in retail and brand-marketing expenses is expected to have cushioned the bottom line.
However, soft retail traffic at company-owned stores and wholesale revenues have been hurting sales. Despite the store reopenings, it has been witnessing year-over-year declines in retail traffic at physical stores, owing to the COVID-19 outbreak and related safety measures. Also, higher supply-chain costs have been a headwind.
Zacks Model
Our proven model does not conclusively predict an earnings beat for NIKE this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
NIKE has a Zacks Rank #3 and an Earnings ESP of 0.00%.
Stocks Poised to Beat Earnings Estimates
Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Spectrum Brands Holdings Inc. (SPB - Free Report) presently has an Earnings ESP of +3.13% and a Zacks Rank #2.
Columbia Sportswear Company (COLM - Free Report) currently has an Earnings ESP of +27.27% and a Zacks Rank #3.
5G Revolution: 3 Stocks to Make Your Move
With super high data speed, it will make current cell phones obsolete and unlock the full potential of big data, cloud computing, and artificial intelligence. In the next few years this industry is predicted to create 22 million jobs and a stunning $12.3 trillion in revenue.
Today you have an historic chance to pursue almost unimaginable gains like Microsoft, Netflix, and Apple in their early phases. Zacks has released a Special Report that reveals our . . .
Image: Bigstock
Things You Must Know Before NIKE (NKE) Reports Q3 Earnings
NIKE Inc. (NKE - Free Report) is slated to release third-quarter fiscal 2021 results on Mar 18. The leading sports apparel retailer is likely to have witnessed sales growth in the quarter under review. Despite the pandemic-led disruptions; strong digital momentum across all regions has been aiding the company’s top line.
The Zacks Consensus Estimate for fiscal third-quarter revenues is pegged at $10.95 billion, suggesting an 8.4% increase from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for the company’s earnings for the fiscal third quarter is pegged at 75 cents, suggesting a decline of 10% from the year-ago reported figure. Notably, earnings estimates have been unchanged in the past 30 days.
In the last reported quarter, the company delivered an earnings surprise of 23.8%. However, its bottom line significantly lagged estimates, on average, over the trailing four quarters.
NIKE, Inc. Price and EPS Surprise
NIKE, Inc. price-eps-surprise | NIKE, Inc. Quote
Key Factors to Note
NIKE has been benefiting from the shift to digital shopping by consumers due to the pandemic, thanks to its efficient digital ecosystem that comprises its online site as well as commercial and activity apps. The company has been witnessing robust digital sales growth across all regions for the past few months. In the fiscal second quarter, digital sales for the NIKE brand witnessed double-digit growth across EMEA, Greater China and APLA along with triple-digit growth in North America.
The persistence of the digital shopping momentum is likely to have contributed meaningfully to its sales in the third quarter of fiscal 2021. On the last reported quarter’s earnings call, the company noted that the holiday season started on a strong note, with record online sales during the Black Friday week. Moreover, management predicted sequential sales growth for the fiscal third quarter. Also, the gross margin is expected to remain flat during the fiscal third quarter.
Moreover, lower SG&A expenses due to tight operating expense management as well as effective marketing spending on brand and sports events are likely to have aided the bottom line in the fiscal third quarter. Also, a decline in demand-creation expenses due to the shift in retail and brand-marketing expenses is expected to have cushioned the bottom line.
However, soft retail traffic at company-owned stores and wholesale revenues have been hurting sales. Despite the store reopenings, it has been witnessing year-over-year declines in retail traffic at physical stores, owing to the COVID-19 outbreak and related safety measures. Also, higher supply-chain costs have been a headwind.
Zacks Model
Our proven model does not conclusively predict an earnings beat for NIKE this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
NIKE has a Zacks Rank #3 and an Earnings ESP of 0.00%.
Stocks Poised to Beat Earnings Estimates
Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Pool Corporation (POOL - Free Report) currently has an Earnings ESP of +6.37% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Spectrum Brands Holdings Inc. (SPB - Free Report) presently has an Earnings ESP of +3.13% and a Zacks Rank #2.
Columbia Sportswear Company (COLM - Free Report) currently has an Earnings ESP of +27.27% and a Zacks Rank #3.
5G Revolution: 3 Stocks to Make Your Move
With super high data speed, it will make current cell phones obsolete and unlock the full potential of big data, cloud computing, and artificial intelligence. In the next few years this industry is predicted to create 22 million jobs and a stunning $12.3 trillion in revenue.
Today you have an historic chance to pursue almost unimaginable gains like Microsoft, Netflix, and Apple in their early phases. Zacks has released a Special Report that reveals our . . .
Download now. Today the report is FREE >>