Nike Q4 Preview & A Sportswear Industry Overview Amid Puma's Basketball Push

Welcome to the latest episode of the Full-Court Finance podcast from Zacks Investment Research. On this episode, Content Writer Ben Rains discusses Nike NKE and tells investors what to expect from the sportswear giant's upcoming fourth quarter financial results, which are due out Thursday. Rains then dives into everything investors need to know about Puma SE PUM.DE after the German sportswear company decided to jump back into basketball for the first time in 20 years.

Nike is coming off a relatively rough quarter, based on its own high standards, with many investors nervous about the company's sliding North American sales. Many, including Nike executives, have pointed to the shifting retail landscape and increased competition from the likes of Lululemon LULU and rival Adidas ADDYY , as major reasons for this recent downturn.

With that said, Nike now thinks it will be able to successfully navigate its domestic setbacks, while it continues to grow internationally. The company is expected to see its Q4 revenues climb by 8.2% to hit $9.39 billion, based on our current Zacks Consensus Estimates. Meanwhile, its quarterly earnings are projected to pop by 6.67% to reach $0.64 per share. But investors should pay close attention to Nike's North American sales figures and watch out for e-commerce and digital sales, which have become Nike's focus in a retail age that Amazon AMZN and other online sellers helped transform.

Moving on, Puma decided to make a performance-based push in the U.S. market, starting with basketball. The company announced that it signed four top NBA prospects last week-two of whom ended up being drafted #1 and #2 overall. Puma also stuck to its plan of adding to its roster of music and entertainment talent.

The company announced that it signed Jay-Z as a creative consultant for its new basketball division. The rapper and entertainment mogul joins a list of Puma partners that include Rihanna, Selena Gomez, Big Sean, and more-Puma's non-sports push mirrors fellow German giant Adidas' push into non-performance sportswear, athleisure, and streetwear with the help of Kanye West and others.

Puma has somewhat quietly amassed a strong roster of stars who have an outsized influence on social media channels, such as Instagram FB and Twitter TWTR -which are hugely important in the online shopping age. Now that the company has jumped back into basketball, Nike and Adidas might have to try a little harder to stay on top. Meanwhile, Puma's move puts even more pressure on Under Armour UAA .

As a reminder, if you feel that we missed something, or if you have any topic suggestions, shoot us an email at Make sure to check out all of our other audio content at , and remember to subscribe and leave us a rating on Apple Podcasts.

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report, Inc. (AMZN): Free Stock Analysis Report

Facebook, Inc. (FB): Free Stock Analysis Report

Twitter, Inc. (TWTR): Free Stock Analysis Report

lululemon athletica inc. (LULU): Free Stock Analysis Report

NIKE, Inc. (NKE): Free Stock Analysis Report

Adidas AG (ADDYY): Free Stock Analysis Report

Under Armour, Inc. (UAA): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Other Topics