What you need to know ahead of Nike’s earnings report

UPDATE – This article has been updated to reflect newer analyst estimates and share price values.

Key takeaways

Nike reports fourth-quarter earnings after markets close on Thursday.
Analysts expect Nike to report higher quarterly sales and profit compared to the same period last year, but in March the company said it anticipates a small, single-digit revenue decline in the first half of fiscal 2025.
Nike is also looking ahead to the Summer Olympics, which begin next month, hoping that new product launches and marketing campaigns will boost sales.

Sportswear giant Nike (NKE) reports fourth-quarter fiscal 2024 results after the bell on Thursday, as the company looks for opportunities to boost its business, such as next month’s Summer Olympics.

Analysts expect Nike’s financial results to improve from the same period last year, with estimates from Visible Alpha calling for net income of $1.27 billion, or 84 cents a share, on revenue of $12.9 billion. A year ago, Nike reported a profit of $1.03 billion, or 66 cents a share, on revenue of $12.83 billion in the fourth quarter.

	Analyst estimates for Q4 2024	Q3 2024	Q4 2023
Income	$12.9 billion	$12.43 billion	$12.83 billion
Diluted EPS	84 cents	77 cents	66 cents
Net income	$1.27 billion	$1.17 billion	$1.03 billion

Key indicator: 2025 fiscal guidance

Wedbush Securities analysts wrote in a Friday note that Nike’s fourth-quarter earnings may not have a material impact on the company’s stock price because they do not expect results to differ significantly from consensus estimates, and the company has already provided some guidance for fiscal 2025 during a conference call results in the third quarter.

Bank of America Securities analysts echoed this sentiment, writing that fiscal year 2025 guidance “will be the focus of Nike’s earnings call, with fourth-quarter results only a proxy for the trajectory of sales and margins going into the year.”

Chief Financial Officer (CFO) Matthew Friend said on the third-quarter earnings call that the company anticipates a low-single-digit revenue decline in the first half of fiscal 2025. This negative forecast was due to Nike’s desire to “shift our product portfolio toward newness and innovation” along with with “a subdued macro outlook globally,” Friend said.

In its second-quarter earnings report released last December, Nike said it was facing “increasing macroeconomic headwinds,” particularly in Europe, the Middle East and Africa (EMEA) and China. It also announced a $2 billion cost cut over the next three years.

Business in the spotlight: Olympic Games, upcoming product launches

Nike is one of the most iconic brands competing in the Olympic Games every four years, with its swoosh logo appearing on uniforms and shoes at dozens of events. Executives also reportedly said at an April promotional event for its Olympic bid that the company plans to spend more on marketing campaigns during the summer games, which begin next month, than in previous years.

Analysts from Wedbush and JP Morgan wrote in their report that many of Nike’s key retail partners, such as Foot Locker (FL) and Dick’s Sporting Goods (DKS), have expressed optimism in recent earnings calls regarding upcoming product launches and new innovations , which they observed with Nike. last notes.

According to JP Morgan, the Foot Locker executive said what he saw clearly showed that “Nike is back on the attack,” while the Dick’s executive said he thought the products Nike was about to launch would make the next few years “very exciting” from a consumer perspective, Wedbush noted.

Nike shares, which have fallen in value since the company’s last two earnings reports, have lost more than 13% this year.