Nike (NKE) reports fiscal second-quarter earnings as the pandemic delivers a huge boost to its digital sales and workout apps. Nike stock fell.
Results come out after the close on Friday, an unusual time for Nike and companies in general.
Estimates: Wall Street expects Nike earnings to fall 10% to 63 cents a share, with revenue rising 2% to $10.55 billion. That would mark a return to top-line growth following two down quarters.
Results: Check back after the close.
E-commerce has been booming during the pandemic. Nike brand digital sales jumped 82% in fiscal Q1, accelerating from 75% growth in fiscal Q4. The company has set a goal to push online sales to 50% of total sales “in the foreseeable future.”
Shares, which are on the IBD Leaderboard, closed down 2.3% at to 137.28 in Friday’s stock market trading. Among other athletic gear stocks, Under Armour (UAA) dipped 0.3%. Adidas, which announced plans recently to sell its Reebok brand, lost 1.4%. Lululemon (LULU), which beat Q3 forecasts earlier this month, fell 2.1%.
Nike stock sits near highs after finding support at the 10-week moving average in early November, according to MarketSmith chart analysis. Shares are extended from a 123.39 follow-on entry, meaning shares are in the buy range that extends to 135.73. The relative strength line has moved sideways even as the Dow Jones stock rises, a weak sign.
Meanwhile, Nike’s hugely popular Run Club and Training Club apps confront a new rival: Apple Fitness+. Apple (AAPL) announced its own new subscription workout service in December.
Nike saw its app downloads explode on the Apple app store after making in-app workouts free early in the pandemic. The apps give access to a huge mountain of customer data, from height and weight to browsing habits.
Lululemon is also making more moves in at-home workouts with its recent acquisition of Mirror as Peloton‘s (PTON) connected stationary bikes and treadmills have seen demand surge during the pandemic.
Find Aparna Narayanan on Twitter at @IBD_Aparna.
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