Pedestrians pass by Nika shop with a modern design and model showing winter clothes on December 5, 2024 in Wuhan, Province of Hubei, China.
Cheng Xin | Getty Images
Nike They will report a fiscal earnings in the third quarter after the bell on Thursday and provide updates about its turnaround as long as the new tariffs and Soft consumer consumption.
Here’s what analysts expect from the world’s largest running company, according to consensitive estimates of LSEG:
- Earnings per share: 29 cents
- Income: 11.01 billion USD
Expectations for Nike are low because it acts to implement the turnaround under his New Executive Director Elliott Hill. Margine could face pressure as Nike moves to clean old goods in favor of new, innovative styles and reset their relationship with wholesalers. The company also struggles with a new set of dynamics that could increase even more.
Since Nike last reported earnings in December, president Donald Trump put it new tariff of 20% On the goods imported from China, consumers’ feelings have fallen, and retail in January and February They were weaker than expected.
Of the hundreds of suppliers and manufacturers with whom Nike works, about 24% of them are in China, according to a Detection of production Posted in January. If the seller does not raise the prices to compensate for the tariff and cannot completely push the costs to suppliers, Nike’s margins are expected to hit new duties.
Furthermore, when consumers do not feel confident and reduce consumption, discreational products like new clothing and shoes are one of the first things they cut in favor of supplies. Over the last few years, the whole markets of sneakers and clothing have been slow because consumers have reduced their clothes and shoes. But until recently, strong companies were still doing well and taking a market share of weaker competitors.
However, this trend began to change in the last few weeks when even the strongest companies began to sound an alarm because of the soft consumer consumer when they reported their earnings in the first quarter, asking questions about the health of the economy.
Nike is expected to regain a market share that has lost and reset his job, and some insiders say the company’s problems are overcrowded. Nevertheless, tariffs and economic fears could mean that the seller’s turn could take longer and be more difficult than expected.
Nike has already made progress in winning the market share and growing his female user base, which is a key component to increase sales of revenue and clothing. Last month he announced that he joined Kim Kardashian’s Intimates brand skims to Create a new product line Called Nikeskima who will include clothes, shoes and accessories. A wicked partnership is expected to provide Nike to improve with women and allow him to compete better LululemonAlo yoga and Vuori, who Look more to women than Nike right now.
Furthermore, Nike debuted a new advertisement campaign directed at athletes During the Super BowlHis first major advertisement for games in decades. The campaign has shown that reaching the athlete and capturing the buzzing around women’s sports will be the central place of the Hill strategy.
When Nike hoses his invitation to make money at 5:00 pm, analysts and investors will want to know how new products are moving, as the company restarts its innovation engine. Some analysts say that traces in the product pipeline will be the most important detail for listening during the call, because Nike’s ability to innovate and extract the best products in the industry is what made it a leader in the market in athletic clothing and shoes.
If it can show positive signs of starting new products, the rest of its winds could only drown as a noise.
