Breaking News
Investing Pro 0
💎 Reveal Undervalued Stocks Hiding in Any Market Get Started

TD Cowen sees Nike beating Q3 expectations

Stock Markets Mar 16, 2023 06:34PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. TD Cowen sees Nike beating Q3 expectations
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio

By Davit Kirakosyan

TD Cowen reiterated its Outperform rating and $141 price target on Nike (NYSE:NKE) ahead of Q3 earnings, scheduled to be reported on March 21.

The firm believes the bar for Nike is a Q3 beat with some flow-through of top-line upside that raises full-year revenue guidance along with constructive commentary on the 2024 setup and path to the targeted high-teens EBIT margin.

According to the firm, key areas of focus will be gross margin, China re-opening, innovation pipeline, North America Wholesale trends and strategy.

According to TD Cowen, intra-quarter digital reads show sustained brand heat, which may result in the company's fiscal Q3/23 revenue guidance being conservative. Additionally, Nike is making progress in reducing its inventory in North America. In fiscal Q3, Similarweb (NYSE:SMWB) unique digital visitors for grew by a mid-to-high-teens percentage year-over-year on a three-month average basis, an acceleration from low double-digit growth in Q2.

“Further, our most recent Athlete Beat report indicates pricing is solid within top-selling SKUs for Nike,” added the firm.

TD Cowen is modeling 7% year-over-year revenue growth (vs. consensus of 5%), gross margin contraction of 250bps to 44.1% (vs. consensus of 43.7%,), EBIT margin decrease of 491bps to 10.1% (vs. consensus of 8.9%), and EPS of $0.61 (vs. consensus of $0.54).

“Our Q3 forecast includes $1B in share buyback and the quarterly dividend increase to $0.34,” added the firm.

TD Cowen sees Nike beating Q3 expectations

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your profile, will be public on and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email