Nike gaining traction in North America ahead of Q3 earnings, Bank of America says

Core Viewpoint - Bank of America analysts maintain a 'Buy' rating for Nike Inc, anticipating continued progress in its North American business despite global challenges [1] Group 1: Earnings Expectations - Total third-quarter sales are projected to decline by 0.4%, factoring in a 300 basis point benefit from foreign exchange [2] - Sales in China are expected to decrease by 16%, with operating margin falling by 500 basis points, reflecting a tough outlook for the second half of the year [2] - Gross margin is anticipated to decline by 200 basis points in Q3, including a 315 basis point impact from tariffs [2] Group 2: Future Guidance - Nike is likely to provide Q4 guidance, but the fiscal year 2027 outlook will be delayed until June [3] - There is potential for Q4 gross margin stability as tariff mitigation efforts begin, with Nike importing products at a lower 10% tariff rate following the IEEPA ruling [3] Group 3: Product Developments - Nike has started rolling out its 2026 World Cup fan and performance apparel, featuring a new performance fabric made entirely from textile waste, which is expected to enhance Q4 and early fiscal 2027 sales [4] Group 4: Price Target - Bank of America has set a price target of $73 for Nike, which is above the current trading level of $53 [5] Group 5: Earnings Report Date - Nike is scheduled to report its Q3 earnings on March 31 [6]