- Nike‘s first-quarter earnings are due out after Tuesday’s closing bell.
- Wall Street analysts are expecting earnings of $US0.63 earnings per share on revenue of $US9.94 billion, according to analysts surveyed by Bloomberg.
- Nike share dove earlier this month after the Colin Kaepernick ad campaign was announced, but have recovered and hit record highs as traders digested the news.
- Watch Nike trade in real time here.
Nike shares are trading near all-time highs ahead of its first-quarter earnings report, which is due out after Tuesday’s closing bell.
Shares sold-off earlier this month after the sneaker giant tapped Colin Kaepernick as the face of a campaign marking the 30th anniversary of its “Just Do It” slogan. Kaepernick, a former football quarterback, protested racial injustice by kneeling during the national anthem.
But Nike’s stock was able to recover and has climbed to record highs as traders have digested the news. Following Tuesday’s closing bell, the sneaker giant is expected to post earnings of $US0.63 a share on revenue of $US9.94 billion, according to analysts surveyed by Bloomberg.
Nike is “marching back to top form,” and its Kaepernick ad shows its renewed strength, Camilo Lyon, an analyst at Canaccord Genuity, said in a recent note to clients.
Last year, Nike nearly lost its crown as king of the sneaker market because the company overproduced its high-scale shoes, making its popular Jordan Brand too easy to get and not as exclusive or cool. But Canaccord Genuity’s research shows the Jordan Brand is rebounding as Nike has been pulling back on production, and now supply seems to have matched demand.
Lyon added that the Kaepernick ads “likely does more good than harm” as the campaign “took a stand in support of a social issue” where few companies have of late.
Lyon has a price target of $US95 and a “buy” rating for Nike shares.
Nike is up 34% this year.
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