Market Minute: Nike (NKE) Ahead of Earnings

Nike (NKE) reports 1Q 2025 earnings after the bell today, one of the last big names before the earnings cycle begins again at the end of next week. Amid lackluster sales, it recently named a new CEO, Elliott Hill, who started at Nike in 1988 as an intern. Under previous CEO John Donahoe, Nike focused on its own digital fulfillment channels at the expense of cutting ties with retail partners, and analysts have pointed out a lack of product innovation as it relied heavily on old standards like the Air Jordans. This allowed other, younger brands like On Holding (ONON) or Decker’s (DECK) Hoka to eat away market share as the company isolated itself. To make matters worse, the WSJ reports that Nike has oversupplied those iconic lines, and now has resorted to selling limited editions at a discount.

Even if Nike beats Zacks’ earnings estimates of $0.51 EPS and $11.65 billion in revenue, those numbers are still heavy drops year-over-year: -45% and -10%, respectively. The stock has fallen over 18% year-to-date and has an implied move of $6 – plenty of room for a swing. Will the market gel with a new CEO’s plans, or has Nike sunk itself into a hole it will have to spend years digging out of? Tune into the Schwab Network for earnings breakdowns and more