Nike Braces for 61% Earnings Plunge in Q1 Report

Nike Inc. (NKE) is poised to capture Wall Street's attention when it reports its first-quarter financial results after the market closes today, with investors and analysts on high alert for a significant downturn in profitability. The athletic apparel titan is facing headwinds that are expected to have a substantial impact on its bottom line.

point to a stark reality: earnings are projected to be just $0.27 per share, representing a dramatic 61% decrease from the $0.70 per share reported in the same quarter last year. Revenue forecasts also signal a retreat, with expectations pegged at $11.00 billion, down from $11.59 billion in the prior-year period. This anticipated slowdown comes as the broader market shows signs of cooling, with ahead of the month's end.

Despite the gloomy forecast, Nike has a formidable track record of defying expectations. The company has successfully surpassed Wall Street's earnings per share estimates for eight consecutive quarters, a history of performance that adds a layer of intrigue to today's announcement. Investors will be parsing the report not just for the headline numbers, but for guidance on future quarters, commentary on inventory levels, and the health of its direct-to-consumer and international segments, particularly in China.

Wall Street analysts have been actively adjusting their models ahead of the print. While most maintain a neutral stance, several have raised their price targets, suggesting a belief in the brand's long-term resilience. In a notable move, TD Cowen upgraded the stock from Hold to Buy on September 10, boosting its price target to $85. More recently, Citigroup and UBS also increased their price targets to $74 and $71, respectively, according to . Shares of Nike closed Monday's session up 0.4% at $69.55, as the market awaits the critical report that will set the tone for the stock in the coming months.