Will Nike Stocks Fiscal Q4 Results Beat Consensus?
Nikes stock (NYSE: NKE), a company designing, developing, and marketing footwear, apparel, equipment, and accessory products, is scheduled to report its fiscal fourth-quarter (ended May) results on Thursday, June 24. We expect Nike to likely beat earnings expectations and see revenues come in line, driven by a boost in digital revenues. The retailer saw supply chain interruptions, including global container shortages and U.S. port congestion, impacting the flow of inventory and timing of wholesale shipments, in its Q3 2021 report. Having said that, the company could benefit from a significant portion of its sales last quarter pushed into Q4 because of shipping delays, which should boost the bottom line in Q4. Nike has shown that it still has what it takes to grow - with revenue for the nine months of fiscal 2021 jumping 4% year-over-year (y-o-y), digital revenues growing roughly 71% y-o-y in all three quarters, and net income increasing 27% y-o-y. The company expects a more consistent flow of inventory in the upcoming Q4. It is resuming projects that were put on hold in 2020, including stock buybacks, inventory purchasing, and looking deeper into marketing and advertising spends.