Canaccord Genuity on Consumer & Retail/Footwear and Apparel: NKE FQ2 and FINL FQ3 EPS Preview
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Price: $94.64 --0%
Rating Summary:
32 Buy, 19 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 3
Rating Summary:
32 Buy, 19 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 3
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Canaccord Genuity on Consumer & Retail/Footwear and Apparel: NKE FQ2 and FINL FQ3 EPS preview by Camilo Lyon
Lyon maintains a Hold rating on Nike (NYSE: NKE) and said, "Strong quarter expected, but risk/reward is not compelling at current levels; futures orders are key With accelerating FQ1 futures orders, we believe the momentum in NKE’s business continued into FQ2 on the back of solid demand for lightweight running and basketball footwear. We believe NKE’s unrelenting basketball release schedule, supported by robust innovation, continues to drive demand across the athletic channel. That said, our enthusiasm around the footwear cycle is tempered by macro concerns in Europe and strategy shifts in China that could restrain the demand equation. Our FQ2 sales growth and EPS estimates are +17% and $0.96, respectively, vs. Street estimates of 16.1% and $0.97. We believe our estimates could prove conservative with the potential for NKE to surpass Street expectations. That said, we believe the shares are priced to perfection in an imperfect world."
For The Finish Line (Nasdaq: FINL), which Lyon rates at Buy: "Digital growth coupled with the athletic cycle continues to bolster comp growth - We estimate comp growth of 4.5% and $0.11 in earnings vs. consensus of 4.9% and $0.11, respectively, for FINL’s FQ3. We believe our comp assumption will prove conservative based on the continued rapid growth of its digital (e-commerce) platform supported by the persistent strength in lightweight running footwear. Moreover, we are incrementally more positive on FINL’s ability to post another solid comp quarter after FL’s impressive Q3 results. We reiterate our BUY rating on the shares."
Lyon maintains a Hold rating on Nike (NYSE: NKE) and said, "Strong quarter expected, but risk/reward is not compelling at current levels; futures orders are key With accelerating FQ1 futures orders, we believe the momentum in NKE’s business continued into FQ2 on the back of solid demand for lightweight running and basketball footwear. We believe NKE’s unrelenting basketball release schedule, supported by robust innovation, continues to drive demand across the athletic channel. That said, our enthusiasm around the footwear cycle is tempered by macro concerns in Europe and strategy shifts in China that could restrain the demand equation. Our FQ2 sales growth and EPS estimates are +17% and $0.96, respectively, vs. Street estimates of 16.1% and $0.97. We believe our estimates could prove conservative with the potential for NKE to surpass Street expectations. That said, we believe the shares are priced to perfection in an imperfect world."
For The Finish Line (Nasdaq: FINL), which Lyon rates at Buy: "Digital growth coupled with the athletic cycle continues to bolster comp growth - We estimate comp growth of 4.5% and $0.11 in earnings vs. consensus of 4.9% and $0.11, respectively, for FINL’s FQ3. We believe our comp assumption will prove conservative based on the continued rapid growth of its digital (e-commerce) platform supported by the persistent strength in lightweight running footwear. Moreover, we are incrementally more positive on FINL’s ability to post another solid comp quarter after FL’s impressive Q3 results. We reiterate our BUY rating on the shares."
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