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stock has been on a tear in 2020—and the athletic large’s upcoming fiscal second-quarter earnings, due out Friday afternoon, can be its subsequent likelihood to show that momentum stays robust.
Nike (ticker: NKE) stock has risen roughly 40% yr up to now, together with a 20% rise prior to now three months. The stock has repeatedly hit new highs this yr, and analysts stay enthusiastic within the lead as much as Friday’s report.
Analysts count on Nike to earn 63 cents a share within the second quarter, on income of $10.55 billion. That compares with earnings per share of 95 cents within the prior quarter, and 70 cents within the year-ago interval.
The corporate has benefited all through the pandemic as shoppers concentrate on well being and wellness, with athleisure a vivid spot amid the in any other case challenged attire class. Nike’s robust digital presence and direct-to-consumer technique have additionally labored within the firm’s favor all through the Covid-19 disaster, and the model stays a teen favourite.
Nike’s earlier earnings report, delivered in late September, blew away expectations and sparked a sector rally. The corporate additionally raised its dividend in November; the shares now yield 0.8%.
Information from Placer.ai discovered that Nike’s in-store foot visitors has rebounded heartily for the reason that begin of the pandemic, from a 98% plunge yr over yr in April to an October decline of 1.9%. Whereas November visits fell 23% from 2019 ranges—possible because of a surge in Covid-19 circumstances—the corporate did see a superb Black Friday-Cyber Monday weekend. Foot visitors turned constructive from the year-ago interval on the Monday following Thanksgiving.
Nike’s web site can be seeing energy, in keeping with SimilarWeb, which says that on-line visitors spiked 29% from September to November. Internet visitors is up 66% for the reason that begin of the yr, forward of
(ADDYY) 61% enhance.
Eighty-six % of the 35 analysts who cowl Nike have a Purchase score or the equal on Nike, in keeping with FactSet. Eleven % price the stock Maintain, and one analyst says Promote. The typical analyst price goal is $151.82. The stock was buying and selling round $140 in noon buying and selling Thursday.
Nike will host a convention name at 5 p.m. Japanese on Friday.
Write to Teresa Rivas at [email protected]