Nike is set to announce its fiscal first-quarter earnings, with analysts predicting earnings per share of 43 cents and revenue of $11.32 billion. The company has been grappling with maintaining sales growth under CEO Elliott Hill, particularly in China, where sales fell 12% last quarter. North America, Nike's largest market, also underperformed with revenue of $4.83 billion, below expectations.
Despite a slight positive gross margin forecast for the quarter, the overall outlook remains cautious, with analysts projecting total revenue for the fiscal year to be around $45.31 billion. A recent downgrade by Bank of America highlights rising risks for Nike amid a challenging retail environment, compounded by macroeconomic pressures such as inflation and geopolitical tensions.
Shares of Nike have dropped over 40% this year, reflecting investor concerns about the company's ability to navigate these challenges. A conference call with analysts is scheduled for 5 p.m. ET, where further insights may be provided