After the close, NIKE (NKE) is scheduled to report 4Q22 results with a conference call following at 5:00 p.m. ET.

Current consensus estimates stand at EPS and revenue of $0.82 and $12.1BN, respectively.

NKE will probably provide FY23 revenue guidance in broader terms. During the 4Q21 call last year Nike guided for FY22 revenue to be "above $50 bln."

In Q3 Nike reaffirmed its FY22 revenue growth guidance. They forecasted growth in the mid-single digits range versus the prior year.

NKE will need to guide for revenue of $51.76 bln too meet expectations. That equates to yr/yr growth of 10.7%, assuming FY22's revenue comes inline with expectations.

With a strong brand name and pricing power, NKE has been able to mitigate the impact of rising costs. In Q3, gross margin expanded by 100 bps to 46.6% due to fewer markdowns and higher mix of full-price sales. For Q4, NKE forecasted margins to expand by at least 150 bps yr/yr.

Supply chain issues and available inventory will be a key factor once again this quarter. One area of concern is China, where government-imposed lockdowns have hurt sales. Last quarter, sales in China slipped by 8%, but the drop could be more severe in Q4 since the pace of lockdowns really accelerated after the quarter ended.

NKE has topped EPS estimates in seven straight quarters.

JOIN NOW

TECHS:

NKE shares are down by about 16% since the company last reported earnings on March 21.

Since the last NKE report, Under Armour (UAA), Dick's Sporting Goods (DKS), and Academy Sports + Outdoors (ASO) have issued a mixed set of earnings reports that reflect healthy-ish (slowing) demand. These companies experienced some gross margin erosion which weighed on their fiscal year outlooks.

If you liked this content please click the ❤️ below and/or share this post.

SHAMLESS PLUGS

CLICK HERE TO CHECK OUT MY 2022 PREVIEW OPINION PACKET. OVER 80 PAGES OF CONTENT AND INFORMATION AVAILABLE HERE.

TOTALLY FREE Trading Packet!

Click here to get my packet that shows you how I traded $600 into $100K FOR FREE.

This packet will explain to you in depth how I trade and how I manage my risk.

I am happy to share this. Just use the code KPAKFRAUD at checkout and you will get it TOTALLY FREE. You will pay absolutely nothing.

Swoosh (NKE Earnings)