Nike To Report Earnings As Consumers Hit Its 'Sweet Spot'

While most Nike stores are now open, digital purchases have fueled sales throughout the pandemic. Nike's online sales surged 59% in Q3, after accelerating to 84% growth in Q2 from 82% in Q1.

Nike has guided Q4 sales growth of 75% and gross margins of about 43.4%. Pivotal Research Group analyst Mitch Kummetz said in a June 21 note that favorable U.S. market conditions likely drove higher-than-expected direct to consumer penetration. Strong full-price sell-through on lean channel inventory may have also boosted profits.

"We're very bullish on the company's North American performance for the quarter," Kummetz said. The report adds that Pivotal's May Footwear Survey indicates that "even as U.S. consumers are now buying a wider range of footwear, they continue to buy shoes to get outdoors (for a run, walk or hike), which is right in NKE's sweet spot."