Shares of Nike edged lower on Tuesday as investors awaited the company’s fiscal fourth-quarter earnings, looking for clues on whether the sportswear giant’s turnaround strategy is beginning to gain traction.
At 1:14 p.m. EDT, stock was trading 0.22% lower, down $0.09 at $41.39. The shares have fallen 34.66% so far this year, reflecting investor concerns over slowing sales, weak demand in key markets and broader economic uncertainty.
The footwear and apparel maker has been working to revive growth under Chief Executive Officer Elliott Hill, who has acknowledged that the company’s recovery is likely to be gradual rather than immediate.
Previously, Nike forecast that sales would continue to decline through the remainder of the calendar year, while projecting a 2% to 4% drop in fiscal fourth-quarter revenue. That outlook was significantly weaker than Wall Street’s earlier expectation of a 1.9% increase in sales.
However, the company recently said its fourth-quarter results would receive an unexpected boost from tariff refunds, a benefit that was not included in its earlier financial guidance.
Chief Financial Officer Matt Friend said during the company’s fiscal third-quarter earnings call that expects sales to decline by a low single-digit percentage for the rest of the calendar year. Growth in North America is expected to be offset by continued weakness in Greater China, which remains one of the company’s most challenging markets.
Nike also warned that higher tariffs in North America weighed on its gross profit margin during the previous quarter, adding pressure to profitability.
In the fiscal third quarter, Nike posted a 3% increase in North American sales, while revenue in Greater China declined 7% year-on-year to $1.62 billion.
According to estimates compiled by LSEG, analysts expect Nike to report:
• Earnings per share: 13 cents
• Revenue: $10.86 billion
For the full fiscal year, analysts project revenue of $46.27 billion and earnings per share of $1.51. Looking ahead to the fiscal year ending in May 2027, Wall Street expects revenue to rise modestly to $46.47 billion.
The earnings report comes as Hill continues to reshape the business following a prolonged slowdown in sales. Management has previously cautioned that the turnaround will not be linear, with improvements expected to emerge at different speeds across product categories and geographic markets.
Hill has nevertheless indicated that the business segments targeted first under the restructuring plan are beginning to show encouraging signs of momentum.
Nike’s recovery efforts are unfolding amid a challenging macroeconomic environment marked by tariffs, geopolitical tensions in the Middle East, elevated fuel prices and weakening consumer confidence. During the third-quarter earnings call, Friend warned that these external factors could continue to create volatility and affect consumer spending patterns.
The company has also undertaken significant cost-cutting measures. In April, Nike eliminated 1,400 jobs as part of its second major round of workforce reductions this year.
Adding to the changes, Nike last week announced a planned transition in its finance leadership, marking another step in the company’s broader restructuring efforts as it seeks to restore sustainable growth and improve profitability.