Nike Q2 Preview: Sportswear Giant Goes For 10th Straight EPS Beat
Apparel and footwear giant Nike Inc. (NYSE:NKE) could show further progress in its turnaround efforts when it reports second-quarter financial results Thursday after market close.
Here are the earnings estimates, what analysts are saying and key items to watch.
Earnings Estimates: Analysts expect Nike to report second-quarter revenue of $12.22 billion, down from $12.35 billion in last year's second quarter, according to data from Benzinga Pro.
The company has beaten analyst revenue estimates in four consecutive quarters and in six of the last 10 quarters overall.
Analysts expect Nike to report second-quarter earnings per share of 38 cents, down from 78 cents per share in last year's second quarter.
The company has beaten analyst estimates for earnings per share in nine straight quarters.
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What Analysts Are Saying: Bank of America analyst Lorraine Hutchinson recently reiterated a Buy rating and $84 price target on Nike ahead of earnings.
The analyst highlighted the company's focus on targeting value-focused shoppers through initiatives like adding products on Amazon.
Hutchinson said the key will be Nike's guidance for the third quarter, which could mark the beginning of the company turning the corner after focusing on reducing excess inventory and boosting product innovation.
The analyst also highlighted China as a key item to watch with the potential for a slow rebound in the region.
Here are other recent analyst ratings on Nike stock and their price targets:
- BTIG: Reiterated a Buy rating with a price target of $100
- Telsey: Maintained Market Perform rating with a price target of $75
- Guggenheim: Initiated with a Buy rating, with a price target of $77
- Citigroup: Maintained Neutral rating, lowered price target from $74 to $70
Key Items to Watch: As noted by the analyst above, guidance and China are among the top areas analysts and investors will be watching when Nike reports Q2 results.
First quarter revenue was up 1% year-over-year, with North America, Europe, Middle East & Africa and Asia Pacific and Latin America segments all seeing year-over-year growth. China was the lone weak spot with revenue down 9% year-over-year.
Nike CEO Elliott Hill said the company was "getting wins under our belt" after the first-quarter results, while cautioning that the company still has "work ahead."
Management said that different parts of the business could recover at different times, which could keep investors believing the company’s turnaround will be a long process.
Another double beat on both earnings and revenue could highlight strong results and a part of the turnaround effort. A miss on either earnings or revenue could set the stock back and have investors head for the exits.
Strong guidance for the third and fourth quarters could be the item that moves the stock the most. The company could highlight the upcoming World Cup as an item that could increase demand.
Nike is the outfit partner for 11 of the teams in the World Cup, including teams like the United States, Brazil, France, England and the Netherlands.
Another item to watch could be commentary on signing new athlete deals. The company could be in the mix to sign NBA star Steph Curry to a deal after he ended his long-term partnership with rival Under Armour.
NKE Price Action: Nike stock is up 0.6% to $66.05 on Thursday versus a 52-week trading range of $52.28 to $82.44. Nike shares are down 10.3% year-to-date in 2025.
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