Pedestrians walk past a Nike store with modern designs and nude models showing off winter clothing in Wuhan, Hubei Province, China on December 5, 2024.
Cheng Xin |Getty Images
Nike The third quarter earnings will be reported after the bells held Thursday and provide the latest information in its turnaround plan as it will result in new tariffs and Soft consumer spending.
According to LSEG consensus estimates, this is what analysts expect from the world’s largest sneaker company.
- Earnings per share: 29 cents
- income: $11.01 billion
Nike’s expectations are low because it can implement turnaround under it New CEO Elliott Hill. Profits can be under pressure as Nike moves to clean up old merchandise, support new innovative styles, and reset relationships with wholesalers. The company also has a new set of dynamics that could make its comeback more difficult to execute.
Since Nike last reported December earnings, the president Donald Trump Let it go New 20% tariff Regarding goods imported from China, consumer sentiment has declined in January and February Weaker than expected.
According to a Nike partnered with hundreds of suppliers and manufacturers, about 24% of them are located in China Manufacturing Disclosure Published in January. Nike’s profit margins are expected to take a hit from new responsibilities if retailers do not raise prices to offset tariffs and cannot push costs entirely to suppliers.
Additionally, when consumers are not confident and spend less, disposable products such as new clothes and shoes are one of their top users to cut. The overall sneaker and apparel market has been slow over the past few years as consumers cut down on clothing and shoes. But until recently, strong companies have performed well and gained market share from weak competitors.
But this trend has begun to change over the past few weeks, when even the most powerful companies began to issue alerts about soft consumer spending when reporting first-quarter earnings, raising questions about the health of the economy.
It is widely believed that Nike will regain its lost market share and reset its business, and some insiders say the company’s problems have been exaggerated. Even so, tariffs and economic fears may mean retailers may take longer and more difficult turnaround times than expected.
Nike has made great strides in winning market share and growing its female customer base, a key component of boosting revenue and clothing sales. Last month, it announced it is standing out with Kim Kardashian’s Infimates brand Create a new product line Known as Nikeskims, it includes clothing, footwear and accessories. The buzzing partnership promises to make Nike progress with women and make it better compete with them mul
lulhemonalo yoga and mountain, More satisfying women More than what Nike does currently.
In addition, Nike launches a new campaign for female athletes for the first time During the Super Bowlits first big game ad in decades. The movement shows that touching female athletes and capturing the buzz around female sports will be the center of Hill’s strategy.
When Nike hosts its earnings call at 5 p.m. ET, analysts and investors will want to know how new product launches will be available as the company restarts its innovation engine. Some analysts say the clues in the product pipeline will be the most important detail to listen on the call, as Nike’s ability to innovate and launch the best products in the industry make it a market leader in sportswear and shoes.
If it can show positive signs in a new product launch, the rest of the headwinds may drown for noise.
