Nike's Q2 Earnings: I Expect The Margin Hit Will Be More Than 150bps

Core Insights - The article discusses the intersection of the earnings season and the holiday shopping season, highlighting Nike as a notable stock that was a pandemic winner but is currently trading at a different valuation [1]. Group 1: Company Analysis - Nike is identified as a stock that has experienced significant changes in its trading status since the pandemic [1]. - The focus is on long-term growth and dividend growth investing, emphasizing the importance of profitability over low valuation [1]. - Key metrics such as margins, free cash flow stability and growth, and returns on invested capital are highlighted as critical factors in evaluating Nike's performance [1]. Group 2: Market Context - The article situates Nike within the broader context of the holiday shopping season, suggesting that consumer behavior during this period may impact the company's performance [1].