Nike (NKE) is set to report Q1 (Aug) earnings results today with a call to follow at 5pm ET. NKE typically guides on the call although it has suspended guidance for now, so we'll see if that changes.

The current CapitalIQ consensus is for EPS of $0.50 (down 42% yr/yr) and revenue of $9.15 bln (down 14% yr/yr).

The August Quarter tends to be a seasonally stronger quarter for Nike.

Nike reported a big miss in Q4 (May) as it reported a $(0.51) loss when a small profit was projected.

Revenue fell 38% yr/yr in Q4 to $6.31 bln. Shipments to wholesale customers were down nearly 50%.

Digital sales were a bright spot in Q4 with a 75% yr/yr increase, with strong double-digit increases across all geographies.

Digital sales represented 30% of total revenue. Gross margin is a closely watched metric with Nike and that took a bit hit in Q4, down 820 bp yr/yr to 37.3%.

Nike has suspended guidance, however, it did say that it expects to see sequential quarterly improvement as retailers re-open and each market normalizes supply and demand.

• For all of FY21, Nike expects revenue to be flat-to-up versus FY20. We will be watching for any change to this language.

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