Nike's Q4 Earnings Preview: Anticipating Fiscal 2025 Outlook

Nike Inc. (NYSE: NKE) is set to report its Q4 fiscal 2024 earnings after the bell on Thursday.

Analysts project improvements in both revenue and profit compared to the same period last year. According to Visible Alpha, Nike is expected to report net income of $1.28 billion, or 84 cents per share, on $12.9 billion in revenue. This represents an increase from the fourth quarter of last year when Nike posted a net income of $1.03 billion, or 66 cents per share, on $12.83 billion in revenue.

Analysts Estimates for Q4 2024:

Analysts from Bank of America Securities emphasize that Nike's fiscal 2025 guidance will be more critical than the fourth-quarter results. During the third-quarter earnings call, CFO Matthew Friend projected a low-single-digit revenue decline for the first half of fiscal 2025. This forecast stems from Nike's efforts to "shift our product portfolio toward newness and innovation" and the "subdued macro outlook around the world."

In December, Nike reported facing "increased macroeconomic headwinds" in regions such as Europe, the Middle East, Africa (EMEA), and Greater China. The company also announced plans to cut $2 billion in costs over the next three years.

Olympics and New Product Launches

Nike's involvement in the Summer Olympics next month presents a significant opportunity for the brand. The company plans to invest more in marketing campaigns during this year's Games than in previous years. At a promotional event in April, Nike executives expressed optimism about their Olympics lineup.

Nike's key retail partners, including Foot Locker (NYSE: FL) and Dick's Sporting Goods (NYSE: DKS), have shown enthusiasm for upcoming product launches.

Investors will be closely watching the fourth-quarter results and fiscal 2025 guidance for signs of future growth.