Nike Q1 Preview: 'Can The Turnaround Narrative Continue?'

Apparel and footwear giant Nike Inc. (NYSE: NKE) could provide an update on its continued turnaround and how tariffs are impacting the business when the company reports first-quarter financial results Tuesday after market close.

Here are the earnings estimates, what experts are saying ahead of the report and the key items to watch.

Earnings Estimates: Analysts expect Nike to report first-quarter revenue of $11.0 billion, down from $11.59 billion in last year's first quarter, according to data from Benzinga Pro.

The company has beaten analyst estimates for revenue in three straight quarters and in six of the last 10 quarters overall.

Analysts expect Nike to report first-quarter earnings per share of 27 cents, down from 70 cents per share in last year's first quarter.

The company has beaten analyst estimates for earnings per share in eight straight quarters and in nine of the last 10 quarters overall.

Read Also: Nike’s Sales, Margins Show Progress — But Tariffs Still Cast A Shadow

What Experts Are Saying: Nike stock climbed after its most recently reported quarterly earnings, with shares up 15% in June on the day of the fourth-quarter earnings.

"Nike shares snapped a six-quarter losing streak in late June when their investors cheered its most recent report," Freedom Capital Markets Chief Market Strategist Jay Woods said in a weekly newsletter.

Woods said the optimism that Nike was "returning to its past glory" may have faded with shares pulling back in recent months after the last quarterly results.

"Can the turnaround narrative continue?"

Woods said the fourth-quarter results showed progress on inventory.

"Can that inventory cleanup continue to improve, helping margins and how is the product refresh coming along?"

Woods added that management guidance and tariff commentary will likely be almost as important as the first-quarter numbers.

Analysts have been raising their price targets on Nike stock ahead of the quarterly results.

Telsey analyst Cristina Fernandez said the key areas to watch for Nike's quarterly results are product innovation, new category revitalizations, the wholesale segment, inventory and tariffs.

The analyst maintained a Market Perform rating and raised the price target from $70 to $75.

"US retailers' comments on Nike's new running products, the expansion of Jordan and Nike at wholesale accounts, and consumer spending during Back-to-School have been positive," Fernandez said, noting that the company is only providing quarterly guidance during its current turnaround strategy.

"Nike is making the right moves by cleaning up inventory, increasing newness, and strengthening relationships with wholesale partners. However, the brand still seems a few quarters away from reaching stabilization," she said.

Here are other recent analyst ratings on Nike and their price targets:

• Morgan Stanley: Maintained Equal-Weight rating, raised price target from $64 to $70
• UBS: Maintained Neutral rating, raised price target from $63 to $71
• Barclays: Maintained Equal-Weight rating, raised price target from $64 to $65
• RBC Capital: Upgraded from Sector Perform to Outperform, raised price target from $76 to $90

Key Items to Watch: Analysts and investors will be examining Nike's various segments and geographic regions to identify which areas demonstrate the strongest performance.

In the fourth quarter, Nike Direct revenue was down 14% year-over-year, while Nike Brand revenue was down 11% year-over-year, and wholesale revenue was down 9% year-over-year.

China sales were down 21% year-over-year in the fourth quarter, compared to an 11% decline for the North America region. Investors and analysts will be looking to see if China and other international areas posted better results.

Tariffs will be a major talking point, with Nike expecting billions of dollars in tariff impacts on their sales. Management commentary on the potential adverse effects of the tariff for the entire year, or how the company is working to mitigate the tariff risk, could be key items to watch.

Nike launched its Skims collaboration last week, a partnership with the Kim Kardashian company. Early demand for products could be among the topics discussed by the company on Tuesday.

Investors and analysts are also seeking more color on future products and collaborations, which could include how the company plans to capitalize on large sporting events such as the 2026 World Cup in North America.

NKE Price Action: Nike stock is down 0.4% to $69.04 on Monday versus a 52-week trading range of $52.28 to $89.75. Nike stock is down 6.3% year-to-date in 2025.

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