Diya Iyer expects Nike (NKE) to report a sales decline this quarter as it attempts a “transformation,” and is watching the full year guidance. Spencer Hakimian focuses on inventory numbers, “especially with all the uncertainty around tariffs,” and “do they need to start marking down stuff.” Diya notes that the industry is raising prices because of tariffs, and performance in the second half will depend on each company’s execution. Spencer argues that if the labor market gets tight, the first thing consumers will cut out is new brand-name shoes.