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Nike’s Quarterly Report is Coming Up, What can its Estimated Traffic Indicate?
Stock Analysis & Ideas

Nike’s Quarterly Report is Coming Up, What can its Estimated Traffic Indicate?

Nike, Inc. (NKE) will release its financial results for its Fiscal Q3 on March 21 after the market closes. The firm is the world’s leading designer, marketer, and distributor of footwear and athletic apparel.

As the world becomes more digitalized, Nike is becoming a more tech-focused organization. NIKE Direct, which focuses on internet sales, is growing at a great pace. It is quickly becoming an important part of Nike’s overall business strategy.

Given Nike’s concentration on digitalization, it’s worth looking into the website visit trend ahead of the Q3 print to get a better understanding of the company’s current state. The increasing user engagement likely indicates a stronger demand for the company’s items on its website, implying increased digital sales and vice versa.

What Do Nike Q3 Estimated Visits Reflect?

Through the tool, we discovered that overall projected visits to the Nike website decreased in Fiscal Q3. In particular, the total projected worldwide visits to nike.com decreased by 15% sequentially from the Fiscal second quarter.

The dip in the monthly users suggests that Nike’s digital revenues may have fallen in the yet-to-be-reported quarter.

In addition, the tool shows that in Q3, user visits to Nike’s subsidiary, converse.com, an American shoe business, fell sequentially. In Fiscal Q3, total projected visitors to converse.com fell 17.7% from the previous quarter to 20.3 million.

In addition, website visits to nike.com dropped 18.1% year-over-year basis to 314.3 million in Fiscal Q3.

The decrease in website traffic might be attributable to many factors, including the increased inflationary pressure which is hurting consumers’ ability to spend.

Other variables that could hurt Nike’s earnings in the upcoming quarter include supply chain issues, temporary shop closures in Russia, and higher oil prices.

Wall Street’s Take

The Wall Street analysts are optimistic on Nike, with a Strong Buy consensus rating based on 16 Buys and four Holds. The average NKE stock prediction of $171.16 implies an upside potential of approximately 36.7% to current levels for this stock.

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