Deutsche Bank Expects NIKE to Report a Q4 Miss

Deutsche Bank analysts provided their outlook on NIKE, Inc. (NYSE:NKE) ahead of the company’s Q4 earnings, expected to be reported on June 27.

The analysts expect the company’s quarterly results to miss the Street estimates. The brokerage expects $0.80 EPS, compared to the Street estimate of $0.85, primarily driven by soft results in China given COVID-19-related lockdowns in major cities. The analysts estimate revenues for China of $1.74 billion, below the Street estimate of $1.82 billion.

On the positive side, the analysts mentioned that trends in North America and EMEA have the potential to offset some of the weaknesses in China.

The analysts reduced their price target on the company’s shares to $152 from $172, while keeping their buy rating unchanged.