Nike Earnings Preview: Low Expectations With Poor Sentiment; Comps Get Easier In FY ’24

Summary:

  • Nike is completing a tough streak of quarters with inventory issues, supply chain issues, wholesale problems, and the ever–present China worries.
  • However, Nike’s capex as a percentage of its revenue has been just 1-2% the last 3-5 years.
  • Nike faces easier comps going forward and is trading at 24x forward earnings over the next 3 years, expected to average 16% EPS growth per year.

Nike"s Quarterly Earnings Surpasses Expectations

Joe Raedle

This chart of Nike (NYSE:NKE) relative to the S&P 500 (SP500) shows Nike’s underperformance since the peak in the stock in early November ’21.

Frankly, this sell-off has been the best buying opportunity for longer-term buy-and-hold investors on the



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