Nike: Don’t FOMO Again And Chase The Earnings Surge


  • Nike raised its full-year outlook at its FQ2’23 earnings release. Management believes that the worst of its inventory digestion is likely over.
  • However, before anyone goes FOMO over its nearly 15% pre-earnings surge, it’s essential to consider whether the margin of safety is appropriate at those levels.
  • Also, Nike’s revenue and profitability growth could face further headwinds if the macro outlook worsens, given its global footprint.

Nike"s Quarterly Earnings Surpasses Expectations

Joe Raedle

NIKE, Inc.’s (NYSE:NKE) stock is up nearly 15% in pre-market trading after reporting its FQ2’23 earnings release. But, before anyone goes FOMO over a better-than-expected FY23 outlook and better execution in FQ2, please consider its valuation carefully.


S&P 500 Apparel, Accessories, & Luxury goods industry net earnings revisions %

S&P 500 Apparel, Accessories, & Luxury goods industry net earnings revisions % (Yardeni Research, Refinitiv)

NKE NTM EBITDA multiples valuation trend

NKE NTM EBITDA multiples valuation trend (koyfin)

NKE price chart (weekly)

NKE price chart (weekly) (TradingView)

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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