The Ratings Game: Nike’s coronavirus-related store closures in China could result in an earnings miss, analysts say

The Ratings Game: Nike’s coronavirus-related store closures in China could result in an earnings miss, analysts say

Nike's coronavirus-related store closures in China could result in an earnings miss, analysts say. Nike Inc. could fall short of the earnings consensus for its third fiscal quarter by as much as 15 cents per share due to store closures across China in response to the coronavirus outbreak, according to UBS analysts.. UBS quotes a consensus of 70 cents per share for the company's third quarter; the FactSet consensus is 69 cents.. UBS takes a number of factors into account, including a coronavirus impact that's isolated to the first half of the third quarter and restricted to China, with Nike. Nike announced late Tuesday that half of the Nike-owned stores in China have been shuttered, with "corresponding dynamics across our partner stores.". Wedbush analysts estimate that the negative impact could be 2 cents per share for every week that its stores remain closed across China, for a total decline of 12 cents per share.. "It is possible product launches will be delayed until the fourth quarter and already launched merchandise may face some markdowns for when business begins to normalize with consumers beginning to shop again," analysts led by Christopher Svezia wrote.. UBS rates Nike's stock a buy