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Beaverton, Oregon-based NIKE, Inc. (NKE) designs, produces, markets, and sells athletic footwear, apparel, equipment, accessories, and services. Valued at $113.3 billion by market cap, the company offers products under the trademarks NIKE, Jumpman, Converse, All Star, Star Chevron, and Jack Purcell, along with operating digital platforms with fitness apps, wellness content, and retail services. The sportswear giant is expected to announce its fiscal third-quarter earnings for 2025 on Thursday, Mar. 20.
Ahead of the event, analysts expect NKE to report a profit of $0.30 per share on a diluted basis, down 69.4% from $0.98 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect NKE to report EPS of $2.09, down 47.1% from $3.95 in fiscal 2024. However, its EPS is expected to rise 12.4% year over year to $2.35 in fiscal 2026.
NKE stock has considerably underperformed the S&P 500’s ($SPX) 23.3% gains over the past 52 weeks, with shares down 24.8% during this period. Similarly, it significantly underperformed the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 34% gains over the same time frame.
NIKE's underperformance stems from past management decisions of prioritizing direct-to-consumer sales over wholesaler relationships, leading to a decline in sales. Moreover, economic pressures, a perceived stagnation in product innovation, and growing competition from luxury brands like Lululemon Athletica Inc. (LULU) and Deckers Outdoor Corporation’s (DECK) Hoka have worsened the company's performance.
On Dec. 19, NKE shares closed up marginally after reporting its Q2 results. Its EPS of $0.78 surpassed Wall Street expectations of $0.63. The company’s revenue was $12.4 billion, topping Wall Street forecasts of $12.1 billion.
Analysts’ consensus opinion on NKE stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 33 analysts covering the stock, 16 advise a “Strong Buy” rating, one suggests a “Moderate Buy,” 14 give a “Hold,” and two recommend a “Strong Sell.” NKE’s average analyst price target is $84.17, indicating a potential upside of 7.5% from the current levels.
