Nike share price: 5 things to watch for in Q3 results

Nike's Q3 earnings will have to answer these five questions.

Nike logo before Nike Q3 results Source: Bloomberg

Nike’s third quarter (Q3) results will be a factor for many investors. Here are four questions that can affect Nike’s Q3 earnings.

Will Nike's earnings per share and revenue rise?

Though Nike had strong Q2 earnings, Nike’s earnings per share is predicted by financial analysts to be $0.83, a decline from a a year ago. In contrast, Nike’s revenue is projected to surge by 5.7% to $9.50 billion, according to Zack’s Consensus Estimate. InvestorPlace also predicts that Nike profits may increase because of strong sales during the holiday season.

Could bad publicity affect Nike’s profits?

While Nike sales grew, the corporation has had to deal with negative publicity. A recent spate of bad publicity could possibly hurt Nike’s Q3 profits. During a US college basketball game in February, a Nike sneaker fell apart on star player Zion Williamson’s foot. The new PG 2.5 sneakers were supposed to the top new shoes promoted by the shoe company. Nike’s stock temporarily dropped, then rebounded after the incident. However, it remains to be seen if it will continue to weigh on investors’ minds and impact Nike’s earnings.

Will new technology and established brands help Nike's earnings?

Nike’s sales have increased because of its investment in digital technology and jump in online sales. Nike’s profits online have increased in its last quarter by 41%. The corporation’s new line of shoes sold very well in stores and online, including the Air Max and Jordan brands. The shoe compnay is also fully investing in the future of sneakers by creating self-tying shoes that are controlled by an app. Investors will want to know if a mixture of new tech and classic shoes will improve Nike’s Q3 revenue.

Will Nike’s profits improve overseas?

Nike’s US sales are projected to grow by 8% to $3.87 billion, according to Zach’s Consumer Estimate. In addition to Nike’s home country of the US, Nike’s profits are still increasing overseas. In China, Nike’s revenue is also expected by Zack’s to surge to $1.54 billion, a double-digit growth.

Can sales beyond shoes affect Nike’s profits?

Nike’s profits could increase if it sells more than its iconic shoes. With athleisure (athletic leisure) clothes sales booming, apparel sales grew by 14% in Q2. Investors will see if Nike’s earnings will increase because of Nike’s clothes as well as its shoes.

Nike’s Q3 revenue will be watched by financial experts and investors to see if the shoe company can still attract large numbers of customers.


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