Nike NKE is set to release its second quarter fiscal 2021 financial results on Friday, December 18. NKE shares have doubled the market over the last three months and the sportswear power’s longer-term outlook is strong despite tough economic conditions.

There could be more pressure on Nike to outperform and provide strong guidance given its run. Investors should look no further than Lululemon’s LULU recent post-earnings drop as an example. Yet, even if Nike hits a near-term hurdle, it appears worth considering as a longer-term buy.

All-Around Game…

Nike has done what is nearly impossible in an industry that’s as ever-changing as fashion. The Oregon-based company has thrived in a fickle space because of its ability to create trends, adapt, and attach the Swoosh to the biggest sports, athletes, and cultural icons in the world. Despite the rise of Lululemon and a resurgent Adidas ADDYY in North America, Nike’s influence on sports and fashion has arguably never been bigger.

Nike has cemented its place at the top of the world’s two most popular sports: soccer and basketball. Plus, it’s the official sponsor of the NFL, which is the richest and most important sport in the U.S. and likely will be for years if not decades to come.

The company also plays a key role in a world where consumers dress more relaxed than ever. And the work and learn from home world has made Nike and its peers even more popular. Let’s also remember that Nike’s shoes, which includes Jordan Brand, remain some of the hottest and most expensive on the secondary shoe market.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Fundamentals

All of this has helped Nike remain one of the world’s most valuable brands alongside the likes of McDonald’s MCD, Disney DIS, and Apple AAPL. And, of course, NKE has been transitioning to a higher-margin, direct-to-consumer model for years. This push includes an array of shopping apps and its mind-blowing reach across social media on platforms like Instagram FB where consumers can now shop directly.

Nike is also working to streamline and digitalized its supply chain. And Nike has not abandoned brick-and-mortar in the Amazon AMZN-age. Instead, it has bolstered its strategic partnerships with the likes of Foot Locker FL and revamped its own stores in high-value cities.

Nike’s brick-and-mortar business is highly necessary and likely to remain vital considering that e-commerce accounted for roughly 14% of total retail sales in Q3, down from a record 16% in Q2. This is up from 11% in the year-ago period. However, some might have expected the figure to be higher given the conditions.