Nike will report its fiscal fourth-quarter ended May 31 on Thursday, and consensus estimates in a Thomson Reuters survey expect that the sports apparel and footwear company will post earnings of 75 cents a share on revenue of $7.3 billion, up 10% from a year earlier.
Nike's spending related to the FIFA World Cup creates some uncertainty about the quarter, wrote D.A. Davidson analyst Andrew Burns in an investor note published on June 18. Burns has a neutral rating on Nike.
Nike's gross margin, the profit a company makes on sales, is another area of concern. Canaccord Genuity analyst Camilo Lyon in report published on June 24. Lyon said higher prices on Nike gear and a favorable mix of product is "being hampered by rising expenses from leathers, chemicals and labor," according to a note. Lyon, who also has a neutral rating on Nike doesn't expect those expenses to abate in the near future.
One trend that Nike is capitalizing on is sneakers in the office as workers choose comfort over dress shoes to get them through the day.
Basketball-related footwear and gear is another growth driver rocketing Nike forward as consumers clamor for not just the very successful Jordan brand of shoes, but now LeBron James, Kobe Bryant, Kevin Durant and others.