Nike faces a testing earnings day on Thursday, with analysts predicting second-quarter sales of around $12.2 billion, a decline of 1% compared to last year. The biggest challenge is expected to come from Greater China, where revenue could fall 9% to approximately $1.6 billion. The stock has already fallen by 8% this year, as investors anticipate more disappointing news.
Analysts attribute these declines to a combination of increased discounting and intensified competition. Estimates from Visible Alpha, part of S&P Global Market Intelligence, suggest Nike has been offering more promotions and clearing old stock at a rapid rate—moves that are squeezing profit margins. Meanwhile, emerging brands such as On and Hoka are gaining ground, further challenging Nike's dominance in the footwear sector.
