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Nike’s Q4 Earnings: Brand Strength Isn’t Offsetting Market Skepticism
(MENAFN- Golin Mena)
Dubai, United Arab Emirates – June 24, 2025
Footwear and apparel giant, Nike, is set to report its fiscal Q4 earnings this Thursday, after markets close US time. Although the company is continuing to grapple with weak consumer spending, elevated inventory levels, and margin pressure from discounting, it has managed to consistently beat consensus EPS estimates. Josh Gilbert, Market Analyst at eToro states that Nike’s turned earnings beats into a habit, but it’s a habit Wall Street no longer rewards. Despite beating EPS expectations in each of the last six quarters, shares have fallen each time post-earnings, underscoring the market’s deeper concerns and investor skepticism. Either way, expect volatility, with the market expecting an 8% move after the earnings release.
Nike shares are down 19% year-to-date, and the biggest near-term concern is profitability. Nike is aggressively clearing inventory through heavy discounting, particularly in staple sneaker franchises like Air Force 1s and Dunks, but this comes at the cost of margins. Nike’s CFO warned that gross margins would likely decline this quarter, pressured by both markdowns and U.S. tariffs on goods from China and other countries. Meanwhile, competition is heating up, with rivals like On, Hoka and Adidas gaining ground, particularly in performance and lifestyle categories. Sales across the globe look set to fall in the double digits, but China remains the biggest drag with expectations of a 20% decline.
Investors are looking for some optimism, but its outlook could remain clouded by tariff concerns, however, recent price hikes could be a saving grace. Nike's unmatched brand equity and global footprint provide a strong foundation, but execution this quarter and next will be critical to determining whether this iconic brand can regain its stride. Nike’s results will also serve as a bellwether for the health of global consumer spending and discretionary retail demand heading into the second half of the year.
This isn’t going to be an overnight turnaround for Nike. As CEO Elliott Hill has said himself, it’s a marathon, not a sprint, which suggests investors are going to need some patience. But, investors won’t be patient forever; they’ve heard the turnaround story, they want results, not just promises.
If Hill’s plans to restore wholesale partnerships and push for new products while focusing on footwear bear fruit, it is likely to drive profitability and grow market share once again over the next few years. The market is looking for earnings of USD$0.13 with revenue of USD$10.7 billion.
Dubai, United Arab Emirates – June 24, 2025
Footwear and apparel giant, Nike, is set to report its fiscal Q4 earnings this Thursday, after markets close US time. Although the company is continuing to grapple with weak consumer spending, elevated inventory levels, and margin pressure from discounting, it has managed to consistently beat consensus EPS estimates. Josh Gilbert, Market Analyst at eToro states that Nike’s turned earnings beats into a habit, but it’s a habit Wall Street no longer rewards. Despite beating EPS expectations in each of the last six quarters, shares have fallen each time post-earnings, underscoring the market’s deeper concerns and investor skepticism. Either way, expect volatility, with the market expecting an 8% move after the earnings release.
Nike shares are down 19% year-to-date, and the biggest near-term concern is profitability. Nike is aggressively clearing inventory through heavy discounting, particularly in staple sneaker franchises like Air Force 1s and Dunks, but this comes at the cost of margins. Nike’s CFO warned that gross margins would likely decline this quarter, pressured by both markdowns and U.S. tariffs on goods from China and other countries. Meanwhile, competition is heating up, with rivals like On, Hoka and Adidas gaining ground, particularly in performance and lifestyle categories. Sales across the globe look set to fall in the double digits, but China remains the biggest drag with expectations of a 20% decline.
Investors are looking for some optimism, but its outlook could remain clouded by tariff concerns, however, recent price hikes could be a saving grace. Nike's unmatched brand equity and global footprint provide a strong foundation, but execution this quarter and next will be critical to determining whether this iconic brand can regain its stride. Nike’s results will also serve as a bellwether for the health of global consumer spending and discretionary retail demand heading into the second half of the year.
This isn’t going to be an overnight turnaround for Nike. As CEO Elliott Hill has said himself, it’s a marathon, not a sprint, which suggests investors are going to need some patience. But, investors won’t be patient forever; they’ve heard the turnaround story, they want results, not just promises.
If Hill’s plans to restore wholesale partnerships and push for new products while focusing on footwear bear fruit, it is likely to drive profitability and grow market share once again over the next few years. The market is looking for earnings of USD$0.13 with revenue of USD$10.7 billion.
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