Event: NKE reports fiscal Q2 earnings today after the close. The options market is implying about a 4.25% move, which is right in line with the 4 quarter avg of 4.25%, and slightly below the 8 quarter average of 5.75%
Sentiment: Wall Street analysts are somewhat bullish on the name, with 11 buys, 13 holds, and no sells, unchanged since last quarter’s earnings report.
Fundamentals: NKE gets only 45% of its revenues from North America, and international weakness especially hurt results in the last 2 quarters. The U.S. business has been the consistent breadwinner for the company, growing almost 20% yoy in the past 2 quarters. Recent monthly sales data actually showed some U.S. slowing but international stabilization.
One other major factor should be gross margin performance and guidance. Here is the 10 year chart of gross margins at NKE: