+ 4.25
+ 1.17%
+ 2.33
+ 0.67%
+ 4.31
+ 0.99%

2 Nike Analysts Give Q4 Report A Pass

June 26, 2020 10:26 am
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More
2 Nike Analysts Give Q4 Report A Pass

Nike Inc (NYSE:NKE) reported a surprise EPS loss and revenue decline in its fourth-quarter report Thursday.

Despite a shortfall versus expectations, some Street analysts remain bullish on the athletic giant.

Refinitiv's Martis Focuses On Nike's Message

Investors may want to overlook Nike's top-and-bottom-line miss and focus instead on the message that management conveyed during its post-earnings conference call, Refinitiv Director of Consumer Research Jharonne Martis said on CNBC's "Squawk Box."

Nike made it clear that it is positioning itself for the long-term by enacting lessons learned from the COVID-19 pandemic, she said.

Consumers are still "missing experiences," and health and wellness remain on the top of their minds, Martis said.

Nike is aware of this trend and is focusing on the digital channel, especially in China, she said.

In fact, the China business helped offset weakness seen across North America, Europe, and Latin America, Martis said. 

Raymond James' McClintock Says Nike Products Hot 

The Street had little understanding of how to forecast Nike's quarter, as EPS estimates ranged from negative 50 cents to positive 40 cents, Raymond James' Matt McClintock said on CNBC's "Worldwide Exchange."

Even though "no one really had a clue," it remains clear that Nike's products are hot, he said. 

Products like Air Force 1 have a COVID-19 problem, but certainly not a demand problem, he said. Fortunately, this was a one-time issue that could resolve as stores reopen worldwide, McClintock said. 

If Nike is forced to shut down stores again from a second wave of COVID-19, it remains among the best positioned to count on its "elite" digital channel to maintain sales, the analyst said.

Nike shares were down 4.07% at $97.19 at the time of publication Friday.

Related Links:

10 Biggest Price Target Changes For Friday

A Peek Into The Markets: US Stock Futures Mostly Lower; Nike Reports Quarterly Loss

Photo courtesy of Nike. 

For the latest in financial news, exclusive stories, memes follow Benzinga on Twitter, Facebook & Instagram. For the best interviews, stock market talk & videos, subscribe to Benzinga Podcasts and our YouTube channel.

Related Articles

Is Nike's Stock Still A Buy At All-Time Highs? The Street Debates

Nike Inc (NYSE: NKE) reported fiscal second-quarter results that came in better-than-expected and sent shares running to new all-time highs. read more

Goldman On Hardline Retail: Top Ideas, New Ideas, Out Of Consensus Ideas, And More

Seven key themes will dominate the retail sector investment landscape next year, and investors have plenty of choices, according to Goldman Sachs analyst Kate McShane. Seven Themes: The seven themes that will impact the hardline retail space next year are as follows, McShane said in a Thursday note. read more

Piper Sandler Highlights Continued Foot Locker Store Closures In Downgrade

Footwear and apparel retailer Foot Locker, Inc. (NYSE: FL) is entering the final weeks of 2020 with many of its stores closed, and its long-term post-pandemic outlook has its own separate headwinds, according to Piper Sandler. read more

Why RBC Is Bullish On Nike, Cautious On Under Armour

RBC Capital Markets analysts initiated coverage of Nike Inc (NYSE: NKE) with a bullish rating while the research firm is more cautious on smaller rival Under Armour Inc (NYSE: UAA). read more