Nike is set to report its fiscal third-quarter earnings after the market close on Thursday, providing updates on its turnaround strategy amidst new tariffs and soft consumer spending.
Analysts expect the following based on consensus estimates from LSEG:
Earnings per share: 29 cents
Revenue: $11.01 billion
Under the leadership of new CEO Elliott Hill, Nike is working to revitalize its brand. Margins may be pressured as the company clears old merchandise to introduce innovative styles and recalibrate relationships with wholesalers. Since December, President Donald Trump has imposed a 20% tariff on goods imported from China, impacting consumer sentiment and retail sales.
Approximately 24% of Nike’s suppliers are located in China, according to a January manufacturing disclosure. If Nike cannot offset tariffs through price increases or supplier negotiations, its margins could suffer. Additionally, soft consumer spending affects discretionary purchases like clothing and footwear.
Despite these challenges, Nike aims to reclaim lost market share and grow its female customer base. Collaborations such as the NikeSKIMS line with Kim Kardashian and a new Super Bowl ad campaign targeting female athletes highlight this focus.
During the earnings call at 5 p.m. ET, analysts will seek insights into new product launches and the company’s innovation pipeline, which remains critical to maintaining Nike’s leadership in athletic apparel and footwear.
— news from CNBC