Nike faces heightened scrutiny ahead of its fiscal first-quarter earnings report on October 1, as several Wall Street analysts warn the company may cut guidance. [5, 8] Sentiment has grown more bearish, with several firms recently downgrading the stock or lowering price targets amid concerns that management will reset its full-year financial expectations. [3, 4, 6]
Analysts point to deteriorating global sales, a promotional retail environment and a stalled two-year turnaround plan. [2, 5, 10] Running and other performance categories have grown, but those gains have not offset significant weakness in the larger Sportswear and Jordan brand segments. [6, 11]
Wall Street expects first-quarter revenue of approximately $11.33 billion, a year-over-year decline. [4, 7] Analysts expect earnings of $0.44 per share, also down year over year. [4, 7] They fear weakening consumer demand is outpacing the company’s turnaround, setting the stage for a volatile report. [6]