Factors Likely to Influence NIKE's (NKE) Earnings in Q2
Factors Likely to Influence NIKE's (NKE) Earnings in Q2. NIKE Inc. NKE is slated to release second-quarter fiscal 2019 results on Dec 20. Moreover, it maintained a spectacular earnings record for more than three years, delivering positive earnings surprises for 25 straight quarters. It continues to target mid-single-digit revenue growth in North America in the next five years.Driven by these positives and stronger-than-expected start to fiscal 2019, NIKE continues to expect revenue growth in a high-single digit in fiscal 2019. However, operating gains are likely to be offset by FX headwinds due to stronger dollar.For second-quarter fiscal 2019, the company expects currency-neutral revenue growth of 9%, in line with the fiscal first quarter. However, taking into account the FX scenario, it expects reported revenues of 2-3 points lower than the anticipated currency-neutral revenue growth in the fiscal second quarter.Clearly, the company’s outlook for the upcoming quarter, as well as the fiscal year, bears significant impacts from FX headwinds as the currency environment has turned unfavorable lately.