Nike shares fell greater than 3% after hours Thursday following earnings.The footwear maker reported a shock earnings lack of 51 cents a share, falling in need of estimates by 54 cents. Income declined 38% to $6.31 billion, additionally quick expectations.Ascent Wealth Companions’ managing director Todd Gordon mentioned he was bullish on the stock forward of the earnings report Thursday.”We expect Nike is an effective indication of future gross sales in China and the way the Chinese language shopper is doing generally,” Gordon advised CNBC’s “Buying and selling Nation” earlier Thursday. In its February-ended quarter, “Nike said they reopened 80% of the shops following Covid, and with all of the shutdowns in home and retail gross sales places, they’ve achieved job transferring to the e-commerce gross sales.”Gordon expects Nike to strengthen its e-commerce platform. Nike Direct, its on-line gross sales phase, generated almost 32% of complete income in 2019 and is anticipated to develop to 35% in 2020. The corporate reported a 75% enhance in digital gross sales in its May-ended quarter.That shift to e-commerce has paid off for Nike shares.”For those who take a look at the long-term lovely uptrend right here, you may see that we had clearly just a little little bit of volatility together with our broader market throughout COVID. We have since recaptured the entire losses, resting slightly below the $105 space, which any type of push would definitely ship momentum breakout patrons into the market,” mentioned Gordon.To reap the benefits of a transfer larger, Gordon is shopping for the 105 name and promoting the 110 name with Aug. 21 expiration. It is a wager Nike can rally as excessive as $110 by expiration. It closed at $101.40 on Thursday.Disclaimer