Nike’s pandemic resistance tested. Upcoming earnings call will reveal level of resilience
Nike has it all, and I’m not referring to its dominance in the shoe and athletic apparel businesses.
Its latest quarterly financial report due this week is worth watching, even for those who only have a pair of Nikes in their closet and none of its stock shares in their investment portfolios.
The company has consistently been able to turn in better-than-expected profits during the pandemic.
Even as COVID-19 has pinched factories in Asia making Nikes, demand for its shoes has been high. In December, the company was growing confident that its slim inventory Expect rents to rise in all of these now most affordable communities, Bachin said.
“When you look at a lot of these neighborhoods and you see the growth happening today, and the fact that there has been a lot of building with little attention to the affordable market, it concerns me,” she said. “In some of these neighborhoods, we already see rents rising.”
For example, North Miami Beach is facing pricing pressure, Sorey said, noting housing development is causing apartment leases to get more expensive.
New real estate projects are underway across the city, including two towers with 700 rental apartments in the city’s cheapest ZIP code. City officials are trying to protect existing tenants by approving in late March an ordinance that would force landlords to give a twomonth notice to tenants when they’re increasing rents over 5%.
“We are keeping the everyday people in mind,” the North Miami Beach city manager said.
Just like in North Miami Beach, developers rushing to meet housing demand are putting up apartment buildings throughout Miami-Dade. But with many new buildings far from being finished, Bozovic would be improving, especially as manufacturing in Vietnam was returning. Still, it forecast profit growth in the low single digits because of the virus and lost production.
Tighter supplies have allowed Nike to be firmer on prices, which helps its profit margins. “We expect to continue benefiting from exceptional demand against the backdrop of lean marketplace inventory,” Matthew Friend, the company’s said, “of course we’re going to see tremendous growth in the rental market. The sale market is moving in lockstep with the rental market. It’s supply and demand. Not everyone is going to purchase.”
Here’s the rundown where renters can find the cheapest apartments in Miami-Dade:
1. North Miami Beach
Median rent: $1,250 (ZIP Code 33162)
2. Miami Gardens
Median rent: $1,300 (ZIP Code 33169)
3. North Miami
Median rent: $1,350 (ZIP Code 33161)
4. Cutler Bay
Median rent: $1,387 (ZIP Code 33157)
5. Miami Shores
Median asking rent: $1,400 (ZIP Code 33150)
6. Allapattah and Brownsville
Median rent: $1,400 (ZIP Code 33142)
7. Homestead
Median rent: $1,450 (ZIP Code 33035)
8. Little Havana
Median rent: $1,500 (ZIP Code 33135)
9. Kendall
Median rent: $1,512.50 (ZIP Code 33176)
10. Hialeah
Median rent: $1,525 (ZIP Code 33014)
AAAAAAAAAARebecca San Juan: 305.376.2160, @rebecca_sanjuan chief financial officer, said on the the firm’s last quarterly financial conference call. Nevertheless, the company is not immune to a key inflationary factor for overseas manufacturers — freight costs.
Nike will be one of the first large American multinational companies to talk about its quarterly financial performance since Russia launched its war in Ukraine. The company has joined others in reducing its business in Russia.
Russian shoppers are shut out from making purchases on Nike’s website and its app and the company temporarily closed its corporate-owned retail stores in Russia. Think of it as a shoe sanction.
Europe, the Mideast, and Africa account for about a quarter of Nike’s revenues. Russia alone may be a small slice, but Nike’s results on Monday will give investors an early indication of how the war in Ukraine is affecting consumer behavior in Europe.
Perhaps more important will be China. China is a manufacturing base for Nike and generates about 20% of its revenue. The country’s new zero-COVID-19 policy has led to tens of millions of people being ordered to go into lockdown beginning this week. That is likely to hurt Nike’s supply chain and its sales.
Supply chain problems, inflation, global uncertainty — Nike covers the entire field. We’ll get a first indication this week how the company is handling the trio of challenges.
Tom Hudson hosts ‘The Sunshine Economy’ on WLRN-FM, where he is the vice president of news. Twitter: @HudsonsView