Nike earnings preview: Why analysts are trimming profit forecasts

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Nike is slated to report fiscal first-quarter results on Thursday after the bell, with Wall Street looking at an ever-expanding list of issues to work through with the athletic gear-maker.

Nike Inc. is slated to report fiscal first-quarter results on Thursday after the bell, with Wall Street looking at an ever-expanding list of issues to work through with the athletic gear-maker.

The cuts were mainly due to the tougher foreign-exchange backdrop, the analysts said. But they also said pressure on gross margins “has been worse than Nike anticipated,” thanks to steeper markdowns to clear shoes and other gear that were sitting on stockroom shelves for too long due to supply-chain hang ups.

What else to expect: Nike over the years has been trying to rely less on outside retailers for sales and more on selling directly to consumers, via its own stores or online. “From our view, appears to be winning the ‘sneaker war’ and we maintain our rating based on the company’s track record of innovation and maintaining cultural relevancy,” the Jefferies analysts said.“We believe consensus estimates haven’t fully accounted for FX headwinds, inflationary pressures on the global consumer, and gross margin pressure as the promotional environment picks up,” analysts there said.

 

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Nike? Everything I seen is new to you, old a/f to the seller. Who bought from the manufacture lately? Does anybody make real $hit anymore”. If they profiting it’s from shady avenues.

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