Nike’s Reliance on Wholesale a Top Risk Despite Digital Growth
Optimism that was building up leading into earnings has been deflated following weaker than expected fourth quarter results and a disappointing 1H21 outlook. While digital sales growth served as a silver lining, investors are zeroing in on the 38% sales drop and surprise earnings loss.
The Case for Buying Nike Ahead of Earnings
Nike is heading into its earnings report in a position of strength and will likely emerge from COVID-19 with a competitive edge over its rivals, according to a number of Wall Street analysts. Nike delivers its quarterly results on Thursday, and analysts are pumping up their price targets in anticipation of positive near-term performance.
Trend Watch: Sneaker Wars
The athletic apparel market is having a hard time gaining its footing in the Covid-19 economy.