{"id":495502,"date":"2022-09-24T01:54:00","date_gmt":"2022-09-23T22:54:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/earnings-outlook-nike-earnings-preview-why-analysts-are-trimming-profit-forecasts\/"},"modified":"2022-09-24T01:54:00","modified_gmt":"2022-09-23T22:54:00","slug":"earnings-outlook-nike-earnings-preview-why-analysts-are-trimming-profit-forecasts","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/earnings-outlook-nike-earnings-preview-why-analysts-are-trimming-profit-forecasts\/","title":{"rendered":"#Earnings Outlook: Nike earnings preview: Why analysts are trimming profit forecasts"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3d5384c8cec\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3d5384c8cec\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/earnings-outlook-nike-earnings-preview-why-analysts-are-trimming-profit-forecasts\/#%E2%80%9CEarnings_Outlook_Nike_earnings_preview_Why_analysts_are_trimming_profit_forecasts%E2%80%9D\" >&#8220;Earnings Outlook: Nike earnings preview: Why analysts are trimming profit forecasts&#8221;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/earnings-outlook-nike-earnings-preview-why-analysts-are-trimming-profit-forecasts\/#%E2%80%98Theres_more_to_watch_than_China_B_of_A_analysts_say\" >\u2018There\u2019s more to watch than China,\u2019 B. of A.  analysts say<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/earnings-outlook-nike-earnings-preview-why-analysts-are-trimming-profit-forecasts\/#Bill_Peters\" >Bill Peters<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CEarnings_Outlook_Nike_earnings_preview_Why_analysts_are_trimming_profit_forecasts%E2%80%9D\"><\/span>&#8220;Earnings Outlook: Nike earnings preview: Why analysts are trimming profit forecasts&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"%E2%80%98Theres_more_to_watch_than_China_B_of_A_analysts_say\"><\/span>\n  \u2018There\u2019s more to watch than China,\u2019 B. of A.  analysts say<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\" data-nosnippet>\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap crawler\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0001216352\" role=\"document\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"\n                inline\" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetArticleReader\n              \n              inline\n  article__inset\n          article__inset--type-InsetArticleReader\n              article__inset--inline\n  \"><\/p>\n<div class=\"media-object-article-reader\">\n<div class=\"audioplayer\" data-sbid=\"WP-MKTW-0001216352\" role=\"region\" aria-label=\"Listen to Article\" tabindex=\"-1\" id=\"articlereader\" data-show-title=\"false\" data-theme=\"wsj-article-reader\" data-show-header=\"false\" data-show-subscribe=\"false\" data-ads-enabled=\"true\" data-save-publication=\"false\">\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Nike Inc. is slated to report fiscal first-quarter results on Thursday after the bell, with Wall Street looking at an ever-expanding list of issues to work through with the athletic gear-maker. <\/p>\n<p> A stronger dollar, inflation, Nike\u2019s<br \/>\n        NKE,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/203439053\/composite\" class=\"negative\">-1.55%<\/bg-quote><br \/>\n       cultural relevance amid competition, the impact of China\u2019s COVID-19 lockdowns and the state of Nike\u2019s supply chain are some of them.<\/p>\n<div class=\"paywall\">\n       <strong>See also<\/strong>: The dollar is crushing rival currencies. Here\u2019s where things are headed.<\/p>\n<p>With the U.S. economy faring relatively well and pushing the dollar higher as compared to other currencies, some analysts are trimming their estimates on Nike for the quarter or the year. <\/p>\n<p>Analysts at Credit Suisse said in research note Friday that they were lowering their first-quarter earnings-per-share estimates for Nike to 90 cents from 95 cents, and their full-year estimates to $3.60 from $3.70. <\/p>\n<p>The cuts were mainly due to the tougher foreign-exchange backdrop, the analysts said. But they also said pressure on gross margins \u201chas been worse than Nike anticipated,\u201d thanks to steeper markdowns to clear shoes and other gear that were sitting on stockroom shelves for too long due to supply-chain hang ups. <\/p>\n<p>Nike\u2019s supply chains, however, have improved in recent weeks, the analysts said, citing unnamed \u201cU.S. contacts.\u201d Unsold product is moving more consistently, and Nike seemed to have a \u201csolid\u201d back-to-school season in the U.S., they said. <\/p>\n<p>Here\u2019s what to expect:<\/p>\n<p><strong>Earnings:<\/strong> Analysts polled by FactSet expect Nike to earn an adjusted profit of 92 cents a share, which would be the fourth straight quarter of earnings growth for the company. That result would compare with $1.16 a share in the year-earlier period.<\/p>\n<p><strong>Revenue:<\/strong> The analysts surveyed by FactSet expect sales of $12.28 billion, compared with $12.2 billion a year ago.<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p><strong>Stock price:<\/strong> Nike shares are hovering around lows not seen since July 2020.  <\/p>\n<p>Year-to-date, shares of Nike are down 45%. By comparison, the S&amp;P 500 index<br \/>\n        SPX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210599714\/realtime\" class=\"negative\">-1.72%<\/bg-quote><br \/>\n       is down about 23% in the same period.<\/p>\n<p><strong>What else to expect:<\/strong> Nike over the years has been trying to rely less on outside retailers for sales and more on selling directly to consumers, via its own stores or online. <\/p>\n<p>Those consumers, for now, <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ear to still be responding even as prices rise, some analysts say. Analysts at Jefferies, citing their own analysis of online data, found that consumer interest in sneakers rose in August from July, with Nike managing to hold on to market share, helped by the popularity of its Dunk sneaker line.<\/p>\n<p>Still, the analysts cut their price target on Nike to $130 from $155, representing 34% upside over Friday prices. They kept their buy rating on the stock, however, saying that they were upbeat longer-term.<\/p>\n<p>\u201cFrom our view, (Nike) appears to be winning the \u2018sneaker war\u2019 and we maintain our (long-term buy) rating based on the company\u2019s track record of innovation and maintaining cultural relevancy,\u201d the Jefferies analysts said. <\/p>\n<p>However, they said the terrain was bumpier in the short-term. <\/p>\n<p>\u201cWe believe consensus estimates haven\u2019t fully accounted for FX headwinds, inflationary pressures on the global consumer, and gross margin pressure as the promotional environment picks up,\u201d analysts there said.<\/p>\n<p>Analysts at B. of A. on Friday also shaved a few cents off their full-year earnings-per-share targets, worried about the strong dollar. They headlined their Friday note \u201cThere\u2019s more to watch than China.\u201d<\/p>\n<p>However, China still is a source of concern for Nike investors. The company faced blowback in China last year after it raised concerns about reports of forced labor in the Xinjiang region. The area produces a big portion of the global cotton supply and has been the target of allegations of human-rights abuses from the West.<\/p>\n<p>\u201cThe demand picture in China remains cloudy,\u201d the B. of A. analysts said in their note. \u201cThe (cotton) boycotts and COVID lockdowns stifled sales, creating a glut of inventory across the athletic channel. We expect (the first half of Nike\u2019s fiscal year) to be characterized by heavy promotional activity to right-size inventory levels.\u201d<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>    <span>By<\/span><\/p>\n<div class=\"author mobile-scrim hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Bill Peters\",\"subhead\":\"The Wall Street Journal\",\"list\":[{\"type\":\"link\",\"icon\":\"bio\",\"url\":\"https:\/\/www.marketwatch.com\/topics\/journalists\/bill-peters\",\"text\":\"Biography\"},{\"type\":\"link\",\"icon\":\"twitter\",\"url\":\"https:\/\/twitter.com\/billwpeters\",\"text\":\"@billwpeters\"},{\"type\":\"link\",\"icon\":\"email\",\"url\":\"http:\/\/www.marketwatch.com\/news\/mailto:bpeters@marketwatch.com\",\"text\":\"bpeters@marketwatch.com\"}]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Bill_Peters\"><\/span>Bill Peters<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><ufc-follow-author-widget product=\"marketwatch\" author-id=\"278_MW\" author-name=\"Bill Peters\" signin-url=\"https:\/\/accounts.marketwatch.com\/login?target=https%3A%2F%2Fwww.marketwatch.com%2Fstory%2Fnike-earnings-preview-why-analysts-are-trimming-profit-forecasts-11663973648%3Frss%3D1%26siteid%3Drss\" panda-api=\"https:\/\/follow-api.marketwatch.com\"><\/ufc-follow-author-widget><\/p><\/div>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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