Nike’s Golf Status and Wholesale Business Will Be In the Spotlight When It Reports Q2 Earnings Next Week

Analysts are projecting an overall positive quarter for Nike Inc. ahead of the Swoosh’s second-quarter earnings report next week. Most market watchers said signs look good for the sneaker giant, but some noted potential headwinds. In a late November note to investors, Jefferies analyst Randal Konik said that Foot Locker’s third-quarter sales beat was a good indicator for how Nike’s results might turn out. Nike still remains the top brand at Foot Locker, though brand mix diversity outside of Nike increased to 36 percent of sales in Q3, from 32 percent this time last year. Foot Locker also touted its partnership with Nike and noted strong sell-through of its Nike and Jordan models. “We believe Nike’s products continued to supplement the Foot Locker banner’s growth as management noted, preferring it for key launches and constraining supply during this reset period,” Konik wrote. He added that given Foot Locker’s overall Q3 growth and strong Thanksgiving week period, “we believe Nike could witness a positive impact to performance.” Similarly, UBS analyst Jay Sole wrote in a Dec. 6 note that his “read of Nike’s wholesale partners, manufacturing partners and competitors suggest Nike performed slightly better than expected during Q2,” calling out strong performers like Chinese retailer Pou Sheng

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