Core Viewpoint - Nike is set to report its fiscal first quarter results on September 30, amid challenges from high inflation and a cost-conscious consumer, leading to a decline in stock performance [1][2] Group 1: Financial Expectations - Nike's Q1 sales are expected to decline by 5% to $11 billion compared to $11.59 billion in the same quarter last year [5] - The company's Q1 EPS is projected to fall to $0.28, down from $0.70 per share a year ago, indicating a steeper decline in profitability [5] - Nike's total sales are anticipated to dip 1% in fiscal 2026 but are projected to rebound with a 6% increase in FY27 to $48.41 billion [10] Group 2: Strategic Focus - Investor sentiment is improving as Nike plans to refocus on product innovation, storytelling marketing, and wholesale distribution after previously alienating partners [2] - The decline in revenue is partly attributed to tariff headwinds, especially in China, with a projected 14% drop in quarterly revenue from the Greater China segment [6][9] - Nike has a mature supply chain and a diverse global manufacturing infrastructure, which positions it better to handle tariff impacts compared to competitors [9] Group 3: Market Performance - Nike's stock has recovered from a 52-week low of $52 but remains over 20% below its one-year high of $90 [2] - The company has exceeded the Zacks EPS Consensus for eight consecutive quarters, with an average earnings surprise of 41.99% in the last four quarterly reports [6][7] - Nike's stock currently trades at a premium to the broader market at 41X forward earnings, making favorable guidance crucial for its continued rebound [12]