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Will Q1 2020 Earnings Spark a Comeback for Nike (NKE) Stock?

Benjamin Rains


Welcome to the latest episode of the Full-Court Finance podcast from Zacks Investment Research where Associate Stock Strategist Ben Rains breaks down what investors should expect from Nike’s NKE first-quarter fiscal 2020 financial results. We also dive into why Adidas ADDYY and Lululemon LULU stock have crushed Nike recently. The episode then closes with a look at why Nike’s e-commerce expansion could help the sportswear giant post its strongest growth in years.  

Nike is set to report its Q1 fiscal 2020 earnings and revenue results after the closing bell on Tuesday, September 24. Shares of NKE popped through morning trading Monday to sit just below their 52-week highs, which could signal that investors and Wall Street expect big things from the sportswear powerhouse.

Overall, Nike stock has matched the S&P 500’s 2019 climb, up roughly 18.5%. However, shares of NKE have fallen well behind German rival Adidas and athleisure standout Lululemon. Nike, like everyone else in retail, has rolled out digital and e-commerce focused offerings in the Amazon AMZN age. Nike’s initiatives have proved far more impactful than what department stores like Macy’s M and Nordstrom JWN have done.

However, big-box retailers Walmart WMT and Target TGT have also crushed NKE stock recently, which might have some wondering what’s going on with the sports apparel titan. Clearly, Lululemon is still firmly in its growth phase, with its success sparking everyone from Gap GPS to L Brands LB Victoria’s Secret to jump on the athleisure train. But Adidas is older than Nike and has many on Wall Street wondering how they ever thought Under Armour UAA was ready to take over second place.

Still, despite lagging behind some of its peers recently, Nike stock could be headed for more success based its earnings and revenue outlook. The Beaverton, Oregon-based company’s digital and e-commerce expansion includes much more than its mind-blowing reach across social media platforms such as Instagram FB.

Nike’s growth in both China and North America will take center stage Tuesday. Meanwhile, look for CEO Mark Parker and other executives to update Wall Street on the tariff and U.S.-China trade war front.

NKE also joins nearly 10 other S&P 500 members scheduled to report their quarterly earnings results this week, including ConAgra CAG and Micron MU (also read: The Q3 2019 Earnings Season Gets Underway).

As a reminder, if you feel that we missed something, or if you have any topic suggestions, shoot us an email at podcast@zacks.com. Make sure to check out all of our other audio content at zacks.com/podcasts, and remember to subscribe and leave us a rating wherever you listen to your podcasts.

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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Facebook, Inc. (FB) : Free Stock Analysis Report
Conagra Brands Inc. (CAG) : Free Stock Analysis Report
L Brands, Inc. (LB) : Free Stock Analysis Report
The Gap, Inc. (GPS) : Free Stock Analysis Report
lululemon athletica inc. (LULU) : Free Stock Analysis Report
Nordstrom, Inc. (JWN) : Free Stock Analysis Report
Walmart Inc. (WMT) : Free Stock Analysis Report
Target Corporation (TGT) : Free Stock Analysis Report
Macy's, Inc. (M) : Free Stock Analysis Report
NIKE, Inc. (NKE) : Free Stock Analysis Report
Adidas AG (ADDYY) : Free Stock Analysis Report
Under Armour, Inc. (UAA) : Free Stock Analysis Report
Micron Technology, Inc. (MU) : Free Stock Analysis Report
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