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NKE reports quarterly results after the close on September 30th.
Shares have struggled over recent years due to muted growth.
An inability to capture consumers' wants post-COVID has weighed heavily.
NIKE (NKE - Free Report) shares have experienced suboptimal price action over recent years, underperforming significantly on the back of quarterly results that have shown muted growth.
Tariff exposure has not helped sentiment either in 2025. In addition, the company has largely been unable to capture consumers’ wants, helping further explain NKE’s recent struggles.
But with the company on deck to reveal quarterly results this week – can we expect a positive showing? Let’s take a closer look.
Can Nike Shares Bounce?
Weak quarterly results have been a major thorn in NKE’s side for multiple periods now, regularly dragging down sentiment. An inability to capture consumers’ wants post-COVID has been a big red flag, also attributing big to the weak sales growth.
Below is a chart illustrating the company’s sales on a quarterly basis.
Image Source: Zacks Investment Research
Positive commentary surrounding upcoming periods was enough for the stock to enjoy a nice post-earnings rise following its latest release, but results were primarily soft. Sales of $11.1 billion throughout the period fell 12% YoY, whereas its gross margin contracted to 40.3% vs. 44.7% in the same period last year.
Below is a chart illustrating the company’s margins on a quarterly basis. Please note that the values are calculated on a trailing twelve-month basis.
Image Source: Zacks Investment Research
Headwinds that are expected to moderate in the coming periods, according to CEO Matthew Friend, help explain the surge post-earnings, perhaps indicating that the ‘worst’ may be over. EPS revisions for the quarter have been stable, with the current $0.60 Zacks Consensus EPS estimate reflecting a 60% year-over-year decline.
Revenue revisions have actually shown a nice chunk of positivity, with the $11.0 billion expected getting revised 0.5% higher over the last several months. Sales are expected to decline 5% year-over-year, reflecting another period of soft sales.
Image Source: Zacks Investment Research
Still, it’s worth noting that while the YoY sales growth rate is expected to be negative, the forecasted decline is vastly improved relative to other recent periods of -12%, -9.3%, and -7.7% across its last three periods, respectively.
And the stock certainly doesn’t reflect a strong value proposition right now, further reinforced by its Style Score of ‘D’ for Value. Shares presently trade at a 35.1X forward 12-month earnings multiple, well above the 30.8X five-year median and reflecting a 50% premium relative to the S&P 500.
Image Source: Zacks Investment Research
Bottom Line
NIKE (NKE - Free Report) has found itself in a tough position post-COVID, struggling to capture consumers’ wants and facing declining sales as a result. The stock is currently a Zacks Rank #4 (Sell), warranting deserved caution.
It currently seems that investors would be better off staying away from shares until we see positive guidance, which could come following its release this week. But over recent years, the company has struggled to right the ship.
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Nike Earnings Loom: Can Shares Bounce?
Key Takeaways
NIKE (NKE - Free Report) shares have experienced suboptimal price action over recent years, underperforming significantly on the back of quarterly results that have shown muted growth.
Tariff exposure has not helped sentiment either in 2025. In addition, the company has largely been unable to capture consumers’ wants, helping further explain NKE’s recent struggles.
But with the company on deck to reveal quarterly results this week – can we expect a positive showing? Let’s take a closer look.
Can Nike Shares Bounce?
Weak quarterly results have been a major thorn in NKE’s side for multiple periods now, regularly dragging down sentiment. An inability to capture consumers’ wants post-COVID has been a big red flag, also attributing big to the weak sales growth.
Below is a chart illustrating the company’s sales on a quarterly basis.
Image Source: Zacks Investment Research
Positive commentary surrounding upcoming periods was enough for the stock to enjoy a nice post-earnings rise following its latest release, but results were primarily soft. Sales of $11.1 billion throughout the period fell 12% YoY, whereas its gross margin contracted to 40.3% vs. 44.7% in the same period last year.
Below is a chart illustrating the company’s margins on a quarterly basis. Please note that the values are calculated on a trailing twelve-month basis.
Image Source: Zacks Investment Research
Headwinds that are expected to moderate in the coming periods, according to CEO Matthew Friend, help explain the surge post-earnings, perhaps indicating that the ‘worst’ may be over. EPS revisions for the quarter have been stable, with the current $0.60 Zacks Consensus EPS estimate reflecting a 60% year-over-year decline.
Revenue revisions have actually shown a nice chunk of positivity, with the $11.0 billion expected getting revised 0.5% higher over the last several months. Sales are expected to decline 5% year-over-year, reflecting another period of soft sales.
Image Source: Zacks Investment Research
Still, it’s worth noting that while the YoY sales growth rate is expected to be negative, the forecasted decline is vastly improved relative to other recent periods of -12%, -9.3%, and -7.7% across its last three periods, respectively.
And the stock certainly doesn’t reflect a strong value proposition right now, further reinforced by its Style Score of ‘D’ for Value. Shares presently trade at a 35.1X forward 12-month earnings multiple, well above the 30.8X five-year median and reflecting a 50% premium relative to the S&P 500.
Image Source: Zacks Investment Research
Bottom Line
NIKE (NKE - Free Report) has found itself in a tough position post-COVID, struggling to capture consumers’ wants and facing declining sales as a result. The stock is currently a Zacks Rank #4 (Sell), warranting deserved caution.
It currently seems that investors would be better off staying away from shares until we see positive guidance, which could come following its release this week. But over recent years, the company has struggled to right the ship.