:max_bytes(150000):strip_icc()/GettyImages-2151560898-25cd3eb2a56143d89cc511f5aa07e9e5.jpg "What You Need To Know Ahead of Nike’s Earnings Report Thursday")
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Key Takeaways
- Nike reports fourth-quarter earnings after markets close Thursday, June 27.
- Analysts expect Nike to post higher quarterly sales and profit from the same time last year, but the company said in March that it projects a low-single-digit revenue decline in the first half of fiscal 2025.
- Nike is also looking ahead to the Summer Olympics that start next month, as it hopes product launches and marketing campaigns will boost sales.
Athletic apparel giant Nike (NKE) reports earnings after the bell Thursday for the fourth quarter of its fiscal 2024 as the company looks ahead to opportunities to boost its business—like the Summer Olympics next month.
Analysts expect Nike’s top– and bottom-line results to increase from the same time last year, with the company projected to post net income of $1.28 billion, or 84 cents per share, on $12.9 billion in revenue, according to estimates compiled by Visible Alpha. In the fourth quarter a year ago, Nike reported profit of $1.03 billion, or 66 cents per share, on $12.83 billion in revenue.
| Analysts’ Estimates for Q4 2024 | Q3 2024 | Q4 2023 | |
| Revenue | $12.9 billion | $12.43 billion | $12.83 billion |
| Diluted EPS | 84 cents | 77 cents | 66 cents |
| Net Income | $1.28 billion | $1.17 billion | $1.03 billion |
Key Metric: Fiscal 2025 Guidance
Wedbush Securities analysts wrote in a Friday note that Nike’s fourth-quarter earnings may not have a substantial impact on its stock price because they don’t expect results significantly off the consensus estimates, plus the company already gave some guidance for fiscal 2025 in its third-quarter earnings call.
Bank of America Securities analysts expressed a similar sentiment in a note Tuesday, writing that guidance for fiscal 2025 “will be the most important topic on Nike’s earnings call, with 4Q results only an indicator of sales and margin trajectories entering the year.”
Chief Financial Officer (CFO) Matthew Friend said in the third-quarter earnings call that the company projects a low-single-digit revenue decline in the first half of fiscal 2025. The downbeat projection was due to Nike’s desire to “shift our product portfolio toward newness and innovation,” along with a “subdued macro outlook around the world,” Friend said.
In its second-quarter earnings report last December, Nike said it had been facing “increased macro economic headwinds,” particularly in Europe, the Middle East and Africa (EMEA), and Greater China regions, and announced plans to cut $2 billion in costs over the next three years.
Business Spotlight: Olympics, Coming Product Launches
Nike is one of the most prominent brands involved in the Olympics every four years, with its swoosh logo featured on uniforms and shoes across the dozens of events. Executives also reportedly said at a promotional event for its Olympics lineup in April that the company plans to spend more on marketing campaigns during this summer’s Games, which kick off next month, than in previous years.
A number of Nike’s key retail partners, like Foot Locker (FL) and Dick’s Sporting Goods (DKS), have expressed optimism in recent earnings calls about coming product launches and new innovations they have seen from Nike, analysts from Wedbush and J.P. Morgan wrote in recent notes.
A Foot Locker executive said what they had seen made it clear “Nike is going back on offense,” according to J.P. Morgan, while a Dick’s executive said they think the products Nike is set to roll out will make the next several years “very exciting from a consumer standpoint,” Wedbush noted.
Nike stock, which has fallen after its last two earnings reports, is down more than 10% so far this year, most recently trading under $97, up about 1%, as of 2 p.m. ET Friday.