What You Need To Know Ahead of Nike's Earnings Report

Core Viewpoint - Nike's upcoming fourth-quarter earnings are not expected to significantly impact its stock price, with analysts focusing more on fiscal 2025 guidance as a key indicator of future performance [2][5]. Financial Performance - For Q4 2024, analysts estimate revenue at $12.9 billion, diluted EPS at 84 cents, and net income at $1.27 billion, showing slight increases from Q4 2023 figures [1]. Fiscal 2025 Guidance - CFO Matthew Friend indicated a projected low-single-digit revenue decline in the first half of fiscal 2025, attributed to a shift towards innovation and a subdued macroeconomic outlook [2]. - Analysts from Wedbush and Bank of America Securities emphasize that guidance for fiscal 2025 will be the most critical topic during Nike's earnings call [2]. Market Conditions - Nike has faced increased macroeconomic headwinds, particularly in the EMEA and Greater China regions, leading to a plan to cut $2 billion in costs over the next three years [3]. Business Initiatives - Nike plans to enhance its marketing efforts during the upcoming Olympics, aiming to spend more than in previous years [4]. - Retail partners like Foot Locker and Dick's Sporting Goods express optimism about Nike's upcoming product launches and innovations, indicating a positive outlook for consumer engagement [4][5]. Stock Performance - Nike shares have declined over 13% year-to-date, following disappointing results from the last two earnings reports [5].