Nike will release an earnings report while Wall Street looks for details on product innovations

Nike (NKE) is expected to report fiscal fourth-quarter results after the bell on Thursday.

Investors are focusing on how consumers are coping amid concerns about slowing spending. In other words: does Nike have a chance to reignite sales growth?

Wall Street and its fans are also closely monitoring product innovation as the Oregon-based giant seeks to fend off competition in its core athletic footwear market – from rivals like Adidas (ADDYY) and relatively new companies like On (ONON) and the Deckers brand ( DECK) Hoka .

With the company’s shares down more than 15% over the past year, a far cry from the S&P 500 Index’s (^GSPC) 26% gain, some analysts are questioning whether the latest earnings report could spark a new wave of positives about the stock.

To be sure, Wall Street was largely pleased with Nike’s cost management, which is expected to show as margins and earnings per share expanded in the fourth quarter. However, analysts are closely watching for information about new products and other potential factors influencing future sales growth.

For example: In one skeptical note announcing the fourth-quarter earnings release, UBS analyst Jay Sole wrote simply that the event “doesn’t look like a big catalyst.” Sole added that after several quarters of slowing sales growth, the question is whether Nike’s declining growth rate has “bottomed out and will soon rebound (higher).”

Here’s what Wall Street expects, according to the Bloomberg consensus:

• Income: $12.86 billion compared to $12.82 billion (same period a year earlier)

• Adjusted earnings per share (EPS): $0.85 vs. $0.66 (same period a year earlier)

• Estimated gross margin: 45.3% vs. 43.6% (same period a year earlier)

Several Wall Street analysts noted that a key part of Nike’s earnings release will be the company’s outlook for 2025, when many investors expect the situation to improve.

Lorraine Hutchinson of Bank of America noted that there are upsides to Nike’s rising margins and the possible launch of a new product lineup. However, these potential benefits are not expected to have an impact on metrics in the first half of Nike’s fiscal year 2025 (which already started on June 1).

“Gathering evidence of Nike’s potential to innovate would increase confidence that there will be a turnaround (in the second half of 2025),” Hutchinson wrote.

Wall Street expects Nike to post earnings per share of $3.90 on revenue of $52.21 billion in 2025, according to the Bloomberg consensus.

Nike reports results later than most of its wholesale partners, such as Foot Locker (FL), Dick’s Sporting Goods (DKS) and JD Sports (JD.L). Wedbush analyst Tom Nikic believes positive comments from these companies over the past few months could point to a promising new Nike product line.

The story continues

All of these companies, essentially three of Nike’s most important partners, all spoke enthusiastically about the new products that were unveiled during recent visits to Nike’s headquarters and at April’s “Innovation Summit” in Paris, Nikic wrote in a research note. “If retailer comments prove prophetic, NKE can expect significantly improved fundamental performance in 2025 and beyond.”

Josh Schafer is a reporter for Yahoo Finance. Follow him on X @_joshschafer.

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