Nike Inc. (NYSE: NKE) stock is trading up 12.02% ahead of its third-quarter 2020 earnings results today after the market closes. Analysts expect the sportswear giant to report earnings of $0.59 per share on revenue of $9.8 billion. Watch this space for live updates.
The results will be impacted by competition and margin pressures as well as the spread of the Covid-19 outbreak. The company has been enjoying solid customer loyalty but the outbreak is likely to lessen the demand due to isolation and social distancing for controlling the pandemic spread.
For the second quarter, Nike reported a 32% jump in earnings as a strategic and targeted investment in digital transformation and key business segments’ performance drove the top-line higher. Gross margin increased by 20 basis points aided by higher average selling prices and margin expansion in NIKE Direct and Converse, which partially offset higher product-costs due to incremental tariffs.
Last month, Under Armour (NYSE: UAA) reported weak fourth-quarter 2019 earnings and revenue due to demand headwinds arising from the transformation strategies, which is likely to improve inventory management and strengthening the balance sheet.
(The article will be updated shortly)