Athletic apparel brand Nike (NYSE:NKE) will be announcing its earnings results this Thursday after market hours. With the company's recent performance and the expectations of analysts, here's what investors can expect from the company's latest financial report.
Last quarter, Nike beat analysts' revenue expectations by 2.3%, reporting revenues of $11.27 billion, down 9.3% year on year. The company had an impressive beat of analysts' EPS estimates and a solid beat of analysts' EBITDA estimates. However, this quarter, analysts are expecting Nike's revenue to decline 15% year on year to $10.72 billion, a further deceleration from the 1.7% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Nike has missed Wall Street's revenue estimates three times over the last two years, but this doesn't seem to have affected the confidence of analysts in the company's ability to perform well in the future.
Looking at Nike's peers in the consumer discretionary segment, only Carnival has reported results so far. It beat analysts' revenue estimates by 1.7%, delivering year-on-year sales growth of 9.5%. Investors in the consumer discretionary sector have had steady hands going into earnings, with share prices up 1.3% on average over the last month. Nike is down 2.3% during the same time.
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In conclusion, while Nike's revenue is expected to decline this quarter, analysts remain confident in the company's ability to perform well in the future. Investors should keep a close eye on the company's earnings report this Thursday to see how it performs against analysts' expectations.
Nike's Q2 earnings preview underscores a wary expectation for revenue decline amidst evolving global consumer trends and potential economic downturn, suggesting an adaptability challenge that compels the brand to innovate its strategies towards growth.
Expectation amid Nike's Q2 Earnings Preview: Focusing on the resilience of its brand influence and unyielding innovation despite a revenue decline, as we monitor how effectively it navigates short-term challenges to maintain longevity in an evolving sportswear industry.
Analysts anticipate a contraction in Nike's Q2 revenue due to global retail slowdown - focusing on the upside potential from digital sales and cost-optimization strategies as key areas of interest.
