Nike Inc (NYSE:NKE) is scheduled to report its fiscal second-quarter results on Thursday, Dec.18.
While U.S. consumers have remained "discerning," comments from retailers suggest the company's new running products have performed well, according to Telsey Advisory Group.
The Nike Rating: Analyst Cristina Fernández maintained a Market Perform rating and price target of $75.
The Nike Thesis: The company is likely to report a 1.8% decline in sales to $12.13 billion, steeper than consensus of a 1.2% downturn to $12.20 billion, due to fewer promotions, "unit reductions to key franchisees, and ongoing softness in China," Fernández said in the note.
Check out other analyst stock ratings.
Nike had projected a contraction in gross margin due to "liquidation activity and the impact of tariffs," the analyst stated. She projects gross margins to contract 300 basis points (bps) to 40.6%, slightly better than consensus of 40.4%.
The analyst expects the company to report earnings of 36 cents per share, versus consensus of 37 cents per share.
She added, however, that Nike is likely to have witnessed year-on-year growth in traffic at its U.S. stores over the Black Friday weekend.
NKE Price Action: Shares of Nike had risen by 2.05% to $64.63 at the time of publication on Wednesday.
Read More:
Photo: Shutterstock
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
