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Nike (NYSE:NKE) CEO John Donahoe was positive on the upside for the athletic apparel giant in an interview on CNBC on Thursday. In particular, Donahoe sees momentum with younger consumers in China with Nike’s (NKE) plan to hyperlocal popular products attracting attention.
“We’re still the number one cool and favorite brand in Shanghai and in Beijing. We’re really focused on the Gen Z consumer in China, we saw a very good response from the Gen Z consumer who wants the most innovative products and wants brands that are globally relevant,” he stated.
Donahoe said the company factored in some disruption around COVID in its fiscal year outlook, but thinks the issue is transitory and that the fundamentals of the China business are strong.
Seeking Alpha authors are cautious on Nike with the last six authors posting an article all rating the stock at Hold, but Wall Street analysts still have a consensus Buy rating.
Shares of Nike (NKE) fell 0.14% on Thursday, but are still up more than 7% for the early part of 2023.
Nike (NKE) is not due to report earnings again until the early part of the March, but sell-side estimates have already been pushed lower by analysts.
