RBC Capital analysts provided their outlook on NIKE, Inc. (NYSE:NKE) ahead of the upcoming Q2 results, noting that investor skepticism remains fairly elevated for sporting goods.
If Nike can deliver low double-digit revenue growth with no change to 2023 guidance, and no major surprises for China (despite COVID headwinds), the analysts believe the sentiment on the company could further improve.
The analysts expect Q2 revenues of $12.67 billion, a gross margin of 42.1% (down 380bps year-over-year), EBIT of $1.27 billion (10.1% margin), and diluted EPS of $0.64.
According to the analysts, key risks include delayed inventory liquidation in North America, China deterioration, and slowing revenue growth.