Wall Street projections for NKE
Wall Street analysts expect Nike (NKE) to report revenue of $9.17 billion in the second quarter of fiscal 2019, representing a 7.1% rise on a YoY (year-over-year) basis. Nike is scheduled to report its fiscal 2019 second-quarter earnings results on December 20.
Nike’s management expects its fiscal 2019 second-quarter revenue to rise 9% on a currency-neutral basis. Its top line growth is likely to be driven by improving sales in North America and a robust performance overseas. The success of its direct-to-consumer business is also aiding its bottom line. However, unfavorable foreign exchange movements are likely to negatively impact its top line.
For fiscal 2019, Nike’s management expects its revenue to come in at the lower end of the guided range. It has guided for revenue growth in the high-single-digit range. Foreign exchange volatility is likely to be the offsetting factor. Analysts expect sales growth of 7.6% to $39.15 billion in fiscal 2019. In fiscal 2018, which ended on May 31, Nike’s revenue witnessed a 6% YoY rise to ~$36.40 billion
In the first quarter of fiscal 2019 (which ended on August 31), Nike reported revenue growth of 9.7% to $9.95 billion, marginally beating analysts’ estimate. Apparel sales for the Nike brand were up 11%, while the company’s Footwear segment saw 10% YoY growth in the quarter.
Nike Direct sales rose 12% in the first quarter, while Nike Digital sales were up 34%. Compared to its 6% growth in North America, its sales in Europe, the Middle East, and Africa reported an 11% increase, while its sales in Greater China rose 24%. The Asia-Pacific and Latin American regions saw 7% sales growth.
Analysts’ projections for NKE’s peers
Under Armour (UAA) reported its third-quarter results on October 30. Its revenue of $1.44 billion beat analysts’ consensus estimate by 1.8%. On a YoY basis, its revenue was up 2.4%. Its top line growth was driven by higher sales from its international and wholesale operations.
Skechers (SKX) reported its third-quarter results on October 18. Its sales of $1.18 billion missed estimates by 3.6%. However, its sales rose 7.5% on a YoY basis. Strength in its international wholesale and global retail businesses cushioned its top line.