:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2218493327-41663a901c4c4310995d85e61b162d05.jpg)
Key Takeaways
- Nike is scheduled to post fiscal fourth-quarter earnings after the market closes on Thursday as the apparel maker works on its turnaround plan.
- Sales and profits are expected to have fallen year-over-year, while analysts are looking for management to clarify when they expect Nike to return to growth.
- A majority of the analysts tracked by Visible Alpha have a “buy” rating for Nike’s stock, expecting it to recover most of the ground it has lost this year.
Nike (NKE) is slated to post its final earnings report of its 2025 fiscal year after the market closes Thursday, with analysts expecting falling sales and profits as the apparel maker works on its turnaround plan.
Nike is projected to report a 15% drop in quarterly revenue from the same time last year to $10.71 billion. Earnings per share are also expected to have dropped to $0.12 from $0.99 a year ago. The company warned in March that it would likely take a sales hit in the fourth quarter from the Trump administration’s tariffs and from its turnaround plan. New CEO Elliott Hill, who took over last October, has said Nike needs to focus on innovating with new products, as it manages the inventory of older legacy lines of shoes and clothing.
Of the 17 analysts covering Nike tracked by Visible Alpha, eight call the stock a “buy,” while another eight say it’s a “hold,” and just one rates it a “sell.” Those analysts have an average price target of $72, which is near where Nike shares started the year, suggesting analysts think the stock can recover most of its lost value. The stock has fallen about 21% in 2025 so far.
Analysts Focus on Nike’s Outlook Over Q4 Performance
In a note previewing Nike’s report, Morgan Stanley analysts recently cut their price target to $61 from $70, saying they expect Nike’s turnaround plan could take longer than expected as it faces macroeconomic pressures and uncertainty around tariffs.
“While our latest wholesale & specialty run checks suggested mgmt.’s initial strategy execution is on the right track, we simultaneously view the road to improved fundamentals as long(er) than prior & still highly volatile,” the analysts wrote.
Bank of America analysts, with a more bullish $80 price target, said they will be more focused on Nike’s outlook than fourth-quarter results, while noting that “it’s unclear what other guidance will be given beyond 1Q” considering the macro uncertainty. Executives will need to provide clarity to investors on when Nike will be through its excess inventory, and when sales and profits will be able to return to growth, they wrote.