Nike, Inc (NYSE:NKE) will likely forecast full-year profit below Wall Street estimates, as demand for the sportswear firm’s products from wholesalers like Foot Locker Inc (NYSE:FL) and Hibbett Inc (NASDAQ:HIBB) in the U.S. succumb to inflation.
At least seven analysts trimmed their FY24 expectations for Nike’s EPS since the beginning of June, and 10 slashed their price targets on the company’s stock ahead of its Q4 results, Reuters reports.
Morningstar analyst David Swartz expects weak wholesale orders likely to weigh on Nike.
Jane Hali & Associates senior analyst Jessica Ramirez voiced heavier markdowns within sneakers in the problematic and volatile U.S. market.
In March, Nike warned against earnings pressure amid its attempts to offload excess inventory through heavy discounts. It still reaped the benefits of rival Adidas AG’s (OTC:ADDDF) (OTC:ADDYY) breakup with the musician formerly Kanye West last quarter and demand for Jordan Retro and LeBron 20.
Foot Locker also flagged declining sales in May, particularly for fashion-oriented sneakers.
Still, analysts expect a more robust rebound in China to offset the hit to sales from cooling consumer appetite for higher margin products in the North American region.
Analysts expect Nike to report Q4 revenue of $12.59 billion, up by 2.9% year-on-year. They expect an EPS of $0.67.
The analysts expect FY24 revenue of $54.23 billion, up by 6.4%, and EPS of $3.91.
Nike is due to report earnings today in the after-hours session.
Price Action: NKE shares are trading higher by 0.86% at $114.00 premarket on the last check Thursday.
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