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Here come Nike earnings ...

Sep 26, 2018, 01:15 IST

Michael B. Thomas/Getty Images

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Nike is set to report earnings after the market closes on Tuesday.

Analysts forecast that the apparel giant will report $0.63 in adjusted earnings per share for its fiscal first quarter, and 10% revenue growth of $9.94 billion, according to estimates compiled by Bloomberg.

They will be reading the earnings release and listening to the call for details on how several notable events impacted Nike's third-quarter performance, including the FIFA World Cup, investments in online stores, and the controversial Colin Kaepernick ad.

During the most recent earnings call, executives emphasized the investments they were making in digital, including using online stores to sell directly to consumers and plans to create a store with inventory influenced by what consumers are buying from nearby zip codes.

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Nike's stock has been a highflier this year, gaining 36% and far outpacing the broader market.

It was also popular with millennial investors, who snapped up the stock amid the controversy surrounding the Kaepernick ad, according to data from Robinhood.

Nike tapped several athletes including former NFL player Colin Kaepernick as the faces of a campaign marking the 30th anniversary of its "Just Do It" slogan. Kaepernick had protested racial injustice by kneeling during the national anthem.

Analysts including Canaccord Genuity's Camilo Lyon said the ad signaled Nike's confidence as a market leader.

"After two years of a soft product cycle that led to increased inventory levels, higher discounting, margin compression, and market share declines, Nike has regained its footing and is solidly marching back to top form," Lyon said in a note earlier this month.

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Foreign-currency fluctuations could weigh on the company's earnings.

More to come, refresh this page for the latest after the market close.

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