Nike Inc (NYSE: NKE) Fiscal Second-Quarter Earnings Preview

Core Insights - Nike Inc is expected to report a significant decline in earnings per share (EPS) of 52.6% and a slight revenue decrease of 1.7% for the fiscal second quarter [1][6] - The company is experiencing growth in North America and the EMEA regions, driven by wholesale gains, pricing discipline, and effective inventory management [2][6] - Challenges in the Chinese market, higher tariffs, and margin strain are testing Nike's "Win Now" turnaround strategy [2][3][6] Financial Metrics - Nike's price-to-earnings (P/E) ratio is approximately 34.23, indicating a strong investor willingness to pay for earnings [5] - The price-to-sales ratio stands at about 2.14, while the enterprise value to sales ratio is around 2.22, reflecting the company's valuation relative to its sales and cash flow [5] Market Performance - The stock has declined approximately 10% in 2025, with investors remaining cautious due to previous warnings about weak holiday sales [3] - Historically, Nike's stock has shown resilience, rising after its last two earnings reports and breaking a six-quarter losing streak in June, with an average next-day movement of 9.1% [4]