Nike is expected to report fiscal first-quarter earnings after the bell Thursday as the retailer struggles to maintain relevance and sales growth under CEO Elliott Hill.
Former Chief Financial Officer Matt Friend previously said the sneaker company expected sales for the first two quarters of fiscal 2027 to be “flattish,” particularly as it saw sales decline in China, a market that has been profitable for the business. Former Pfizer executive David Denton took over as CFO in August.
Still, Nike said it expects gross margins for the first fiscal quarter to be slightly positive compared to the year-ago period.
Here’s what the company expects to report, based on a survey of analysts by LSEG:
- Earnings per share: 43 cents per share is expected
- result: $11.32 billion is expected
Nike has struggled to position itself for growth, including in its most critical markets. Last quarter, it reported $4.83 billion in revenue for North America, its largest market. That was lower than Wall Street’s expectations of $4.88 billion, according to StreetAccount.
The company has also struggled in its key market of China, with sales down 12% in the last quarter. Hill said on the phone with analysts in June that Nike is “committed” to winning back that market.
For the current fiscal year, analysts expect total revenue of around $45.31 billion, according to LSEG. They also expect revenue for the second fiscal quarter to be around $11.79 billion.
Nike has one new bright spot. The company reported an increase in earnings through a rate refund of nearly $986 million, contributing 52 cents per share to earnings in the previous quarter.
The retailer is already in the midst of a turnaround plan, focusing on adding separate parts of the business at different rates based on priority. Nike consumers are also under increased macroeconomic pressure as geopolitical tensions and higher inflation lead to slower spending.
In a note last week, Bank of America analysts downgraded the stock from neutral to underperform, saying “risks are rising” for the sneaker company amid overall sluggishness in the category. The record also shows more disappointing results for the Chinese market and a continued decline in stocks.
Nike shares have fallen more than 40% this year.
Nike will host a conference call with analysts at 5 pm ET.