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.
NIKE (NKE) to Report Q4 Earnings: What's in the offing?
Read MoreHide Full Article
NIKE Inc. (NKE - Free Report) is slated to release fourth-quarter fiscal 2020 results on Jun 25. In the last reported quarter, the leading sports apparel retailer delivered a positive earnings surprise of 44.4%. Moreover, its bottom line beat estimates by 20.1%, on average, over the trailing four quarters.
The Zacks Consensus Estimate for the company’s earnings for the fiscal fourth quarter is pegged at 3 cents, suggesting a decline of 95.2% from the year-ago reported figure. Notably, earnings estimates have declined 72.7% in the past seven days. The consensus estimate for fourth-quarter sales is pegged at $7.39 billion, indicating a 27.4% decline from the prior-year quarter’s reported number.
During fourth-quarter fiscal 2020 (March-May period), NIKE almost fully resumed store operations in Greater China and South Korea, after a prolonged period of lockdown due to the coronavirus outbreak. In South Korea, about 95% of stores were operational as of May 14, with some working for limited hours. The company notes that in-store retail traffic in the locations has been gradually gaining momentum although it continues to be softer than the prior-year period.
Additionally, NIKE began gradually reopening stores in North America, EMEA and APLA as some states and countries are easing restrictions starting from the end of April and May. Consequently, NIKE reopened stores in more than 15 countries, including Germany, France, the Netherlands, Brazil and the United States. As of May 14, operations began in nearly 40% of stores in EMEA, 15% in APLA and 5% in North America. These included both NIKE-owned and wholesale partner stores. In the re-opened stores, the company has been undertaking safety protocols, including social-distancing rules, restrictions on store traffic, sanitization of products, distribution centers and facilities, and providing masks to employees.
Despite the resuming of operations in China and South Korea as well as partial openings in more than 15 countries, the company notes that most of the NIKE-owned and wholesale partner stores remained closed since mid-March through most of April. This resulted in delayed shipments to wholesale customers, leading to lower wholesale revenues and higher inventory. This is likely to have affected the NIKE Direct and wholesale businesses in North America, EMEA and APLA in fourth-quarter fiscal 2020.
Consequently, it recently stated that it will provide further updates during the fourth-quarter fiscal 2020 earnings call. Earlier, in its fiscal third-quarter report, the company refrained from providing any guidance for the fourth quarter and fiscal 2020.
Nevertheless, higher conversion rates and robust demand in the digital space have been catalysts during the fiscal fourth quarter. Management remains optimistic about consumers' increasing preference for a healthy lifestyle, which helped in maintaining the brand’s solid momentum in the fiscal fourth quarter.
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 #4 and an Earnings ESP of -38.24%.
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:
Netflix, Inc. (NFLX - Free Report) presently has an Earnings ESP of +1.09% and a Zacks Rank #2.
Fastenal Company (FAST - Free Report) currently has an Earnings ESP of +5.88% and a Zacks Rank #2.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Image: Bigstock
NIKE (NKE) to Report Q4 Earnings: What's in the offing?
NIKE Inc. (NKE - Free Report) is slated to release fourth-quarter fiscal 2020 results on Jun 25. In the last reported quarter, the leading sports apparel retailer delivered a positive earnings surprise of 44.4%. Moreover, its bottom line beat estimates by 20.1%, on average, over the trailing four quarters.
The Zacks Consensus Estimate for the company’s earnings for the fiscal fourth quarter is pegged at 3 cents, suggesting a decline of 95.2% from the year-ago reported figure. Notably, earnings estimates have declined 72.7% in the past seven days. The consensus estimate for fourth-quarter sales is pegged at $7.39 billion, indicating a 27.4% decline from the prior-year quarter’s reported number.
NIKE, Inc. Price and EPS Surprise
NIKE, Inc. price-eps-surprise | NIKE, Inc. Quote
Key Factors to Note
During fourth-quarter fiscal 2020 (March-May period), NIKE almost fully resumed store operations in Greater China and South Korea, after a prolonged period of lockdown due to the coronavirus outbreak. In South Korea, about 95% of stores were operational as of May 14, with some working for limited hours. The company notes that in-store retail traffic in the locations has been gradually gaining momentum although it continues to be softer than the prior-year period.
Additionally, NIKE began gradually reopening stores in North America, EMEA and APLA as some states and countries are easing restrictions starting from the end of April and May. Consequently, NIKE reopened stores in more than 15 countries, including Germany, France, the Netherlands, Brazil and the United States. As of May 14, operations began in nearly 40% of stores in EMEA, 15% in APLA and 5% in North America. These included both NIKE-owned and wholesale partner stores. In the re-opened stores, the company has been undertaking safety protocols, including social-distancing rules, restrictions on store traffic, sanitization of products, distribution centers and facilities, and providing masks to employees.
Despite the resuming of operations in China and South Korea as well as partial openings in more than 15 countries, the company notes that most of the NIKE-owned and wholesale partner stores remained closed since mid-March through most of April. This resulted in delayed shipments to wholesale customers, leading to lower wholesale revenues and higher inventory. This is likely to have affected the NIKE Direct and wholesale businesses in North America, EMEA and APLA in fourth-quarter fiscal 2020.
Consequently, it recently stated that it will provide further updates during the fourth-quarter fiscal 2020 earnings call. Earlier, in its fiscal third-quarter report, the company refrained from providing any guidance for the fourth quarter and fiscal 2020.
Nevertheless, higher conversion rates and robust demand in the digital space have been catalysts during the fiscal fourth quarter. Management remains optimistic about consumers' increasing preference for a healthy lifestyle, which helped in maintaining the brand’s solid momentum in the fiscal fourth quarter.
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 #4 and an Earnings ESP of -38.24%.
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:
Helen of Troy Limited (HELE - Free Report) currently has an Earnings ESP of +11.48% and it sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Netflix, Inc. (NFLX - Free Report) presently has an Earnings ESP of +1.09% and a Zacks Rank #2.
Fastenal Company (FAST - Free Report) currently has an Earnings ESP of +5.88% and a Zacks Rank #2.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2020 today >>