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.
Dick’s Sporting Goods is Stepping Up Its Sneaker Game
Strong online growth and positive sneaker trends are setting up the sports retailer for future gains, according to Cowen analyst John Kernan. The firm upgraded shares of Dick’s Sporting Goods to OUTPERFORM from MARKET PERFORM, with a price target increase to $50 (from $36).
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.