Christina Aino previews key earnings: Nike reports with a new outsider CFO amid turnaround pressure; Constellation Brands faces declining alcohol consumption trends and rising commodity costs; General Mills may see worst of brand weakness over as house brand competition eases, with pet food as a potential bright spot.
Asks if Nike's turnaround will finally show positive results when they report earnings.
Christina Aino
Nike announced a leadership change - David Denton (from Pfizer, an outsider) will take over as CFO in August. This is surprising ahead of Q4 results. Stock is near 2014 lows, investor confidence is low.
Nathan Hager
Asks about Constellation Brands results and the beer/wine business outlook.
Christina Aino
Jefferies analysts are cautious on Constellation Brands due to declining alcohol consumption trends among younger generations. They expect organic sales of -1% to +1%. Strong World Cup ad spending could help but cuts into margins.
Nathan Hager
Asks about General Mills and whether name brands are still struggling at the grocery aisle.
Christina Aino
Bloomberg Intelligence analysts think the worst may be over for national food brands like General Mills. They project 3-4% sales growth this year. House brands still have cost advantage but brand names may regain ground. Pet food business could be a bright spot.
