Nike is set to report fiscal fourth-quarter earnings after the bell Tuesday as CEO Elliott Hill works to reverse declining sales and execute a business turnaround. The company previously projected a 2% to 4% revenue decline for the fiscal fourth quarter, below Wall Street's estimate of a 1.9% increase, but announced last week that results will include an unexpected benefit from tariff refunds not included in prior guidance. The earnings come amid macroeconomic uncertainty including tariffs, the Middle East war, and rising oil prices, with CFO Matt Friend stating Nike expects sales to fall by a low single-digit percentage for the rest of the calendar year.
Analysts Expect Revenue of $10.86 Billion for Fiscal Fourth Quarter
Analysts surveyed by LSEG project earnings per share of 13 cents and revenue of $10.86 billion for Nike's fiscal fourth quarter. For the full fiscal year, analysts expect revenue of $46.27 billion and earnings per share of $1.51. They project revenue of $46.47 billion for the next fiscal year ending in May 2027.
Nike Previously Guided 2% to 4% Sales Decline for Fiscal Fourth Quarter
Nike previously said it expected sales to fall for the rest of the calendar year, projecting a decline of 2% to 4% in its fiscal fourth quarter. That expectation was well under Wall Street estimates of an increase of 1.9%. The company said last week that its results will include an unexpected benefit from tariff refunds that was "not contemplated in the company's previously provided guidance." CFO Matt Friend said on the fiscal third-quarter earnings call that Nike expects sales to fall by a low single-digit percentage for the rest of the calendar year, led by growth in North America but offset by a big drop in China.
North America Sales Rose 3% While Greater China Revenue Fell 7% in Fiscal Third Quarter
In its fiscal third quarter, Nike reported steady growth in North America with a 3% sales increase, while its Greater China market saw revenue sink 7% to $1.62 billion for the quarter. The company's gross profit margin took a hit last quarter due to higher tariffs in North America. Friend said Nike could face unexpected impacts from the broader backdrop, including volatility from rising oil prices and lowered consumer confidence.
Nike Cut 1,400 Roles in April and Announced CFO Transition
In April, Nike instituted a sweeping round of layoffs, cutting 1,400 roles across the organization in its second workforce reduction of the year. Last week, the company announced a planned CFO transition, with former Pfizer executive David Denton taking over for Friend effective Aug. 17. CEO Elliott Hill previously said that the parts of the business Nike initially focused on turning around are beginning to see "momentum," though the company warned its turnaround would not be linear as certain parts of the business improve at different rates.
Nike World Cup Advertisements Outpaced Adidas on Social Media
Nike saw a boom from the World Cup, hosted across North America this summer. While it is not an official sponsor, the company saw its advertisements massively outpace sneaker rival Adidas and gain significant traction across social media. Nike will host a conference call with analysts at 5 p.m. ET.
FAQ
What are analysts expecting from Nike's fiscal fourth-quarter earnings?
Analysts surveyed by LSEG expect Nike to report earnings per share of 13 cents and revenue of $10.86 billion for the fiscal fourth quarter. For the full fiscal year, analysts project revenue of $46.27 billion and earnings per share of $1.51.
Who is replacing Matt Friend as Nike's CFO?
Former Pfizer executive David Denton is taking over as Nike's CFO effective Aug. 17. Nike announced the planned CFO transition last week.
