Nike (NKE) Q3 2025 earnings

Nike will report fiscal third-quarter earnings after the bell on Thursday and supply updates on its turnaround plan because it navigates new tariffs and delicate client spending.

Here is what analysts predict from the world’s largest sneaker firm, in accordance with consensus estimates from LSEG:

• Earnings per share: 29 cents
• Income: $11.01 billion

Expectations are low for Nike as it really works to implement a turnaround below its new CEO Elliott Hill. Margins may face strain as Nike strikes to filter out previous merchandise in favor of latest, progressive kinds and reset its relationship with wholesalers. The corporate can also be contending with a brand new set of dynamics that might make its comeback even more durable to execute. 

Since Nike final reported earnings in December, President Donald Trump has put a brand new 20% tariff on items imported from China, client sentiment has fallen, and retail gross sales in each January and February had been weaker than anticipated. 

Out of the tons of of suppliers and producers that Nike works with, about 24% of them are positioned in China, in accordance with a manufacturing disclosure revealed in January. If the retailer would not increase costs to offset tariffs and might’t push the associated fee solely on to suppliers, Nike’s margins are anticipated to take a success from the brand new duties. 

Additional, when customers aren’t feeling assured and chopping again on spending, discretionary merchandise like new garments and footwear are one of many first issues they minimize out in favor of requirements. Over the previous couple of years, the general sneaker and attire markets have been sluggish as a result of customers have reduce on garments and footwear. However up till lately, robust firms had been nonetheless performing nicely and taking market share from weaker rivals. 

Nonetheless, that pattern started to shift over the previous couple of weeks when even the strongest of firms began to sound the alarm about delicate client spending once they reported first-quarter earnings, elevating questions in regards to the well being of the economic system. 

Nike is broadly anticipated to reclaim the market share it misplaced and reset its enterprise, and a few insiders say the corporate’s issues have been overblown. Even so, the tariffs and financial fears may imply that the retailer’s turnaround may take longer, and be tougher, than anticipated. 

Nike has already made strides in successful again market share and rising its feminine buyer base, a key part to boosting income and attire gross sales. Final month, it introduced it was teaming up with Kim Kardashian’s intimates model Skims to create a brand new product line dubbed NikeSKIMS that can embody attire, footwear and equipment. The buzzy partnership is predicted to present Nike improved inroads with girls and permit it to raised compete with Lululemon, Alo Yoga and Vuori, which cater extra to girls than Nike at the moment does. 

Additional, Nike debuted a brand new advert marketing campaign geared towards feminine athletes in the course of the Tremendous Bowl, its first huge sport commercial in a long time. The marketing campaign confirmed that reaching feminine athletes and capturing the thrill round girls’s sports activities can be a middle level of Hill’s technique.

When Nike hosts its earnings name at 5 p.m. ET, analysts and buyers will wish to know the way new product launches are faring as the corporate restarts its innovation engine. Some analysts say clues into the product pipeline can be an important element to hear for in the course of the name as a result of Nike’s capability to innovate and put out the most effective merchandise within the trade is what made it the market chief in athletic attire and footwear.

If it could possibly present optimistic indicators from new product launches, the remainder of its headwinds may simply be drowned out as noise.