The sneaker maker's quarterly results should show a sharp drop, if forecasts are correct. But Wall Street is betting the recovery starts now.
With Nike Inc.'s fourth-quarter results due on Thursday, some analysts say the company's sluggish sales and stock price should reach the bottom soon — if not now, then in the months ahead — after struggling with competition, squeezed consumers and weaker sneaker demand over the past few years.
The Q2 earnings cycle is weeks away from picking up notable steam with the release of the big banks' results, but we nevertheless have several companies reporting their results in the days ahead, which we count as part of the overall Q2 tally.
NKE's high valuation clashes with weak growth, raising red flags as investor expectations outpace business momentum.
Nike is betting its endeavor to help Kenyan athlete Faith Kipyegon run a mile in under four minutes will recapture the attention of women consumers who have been looking elsewhere for running shoes and clothes.
Nike Inc (NYSE:NKE, ETR:NKE) shares are trading at near-decade lows, but Jefferies analysts are urging investors to look beyond the upcoming fourth quarter earnings pain and “just buy it.” The analysts repeated their ‘Buy' rating on Nike with a price target of $115, representing upside of nearly 90% from current levels, and declared that the company has reached its fundamental trough.
Nike (NYSE: NKE) is set to announce its fiscal fourth-quarter earnings (for the year ending in May) on Thursday, June 26, 2025, with analysts anticipating earnings of 12 cents per share on $10.71 billion in revenue. This would reflect an 88% decline in earnings year-over-year and a 15% decrease in sales compared to the previous year's figures of 99 cents per share and $12.62 billion in revenue.
Nike's strong cash position enables strategic investments in marketing and R&D to differentiate from competitors. The brand's global recognition and loyal customer base remain key strengths supporting its long-term growth potential. Potential U.S.-China tariff agreements could provide a catalyst for future performance improvement.
NKE braces for Q4 earnings hit, but long-term bets on innovation, pricing and digital can reshape the recovery arc.
Nike's brand strength is undeniable, but its exposure to volatile fashion trends and shifting consumer preferences limits its long-term investment appeal. Despite strong financials, Nike's high valuation isn't justified by fundamentals, especially given ongoing margin pressure and market share losses. Inventory management issues, rising marketing costs, and tariff uncertainties are weighing on profitability and clouding near-term earnings visibility.
Evaluate the expected performance of Nike (NKE) for the quarter ended May 2025, looking beyond the conventional Wall Street top-and-bottom-line estimates and examining some of its key metrics for better insight.
For Nike's fiscal Q4 '25, analyst consensus is expecting $0.12 in earnings per share on $10.7 billion in revenue, for expected y-o-y declines of -88% and -15% respectively. Inventory liquidation is expected to have come to an end in the May '25 quarter and Nike should show some progress - albeit small improvement - with the May '25 release. The key will be how Nike guides for Q1 '26 (ends August '25) and for the full fiscal '26 year.