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Headquartered in Beaverton, Oregon, NIKE, Inc. (NKE) is a global sportswear company comprising the Nike, Jordan and Converse brands. It designs, develops and markets athletic footwear, apparel, equipment and accessories, serving athletes and consumers worldwide through innovation and sport-focused products. The company has a market capitalization of approximately $53 billion.
NKE is set to report its Q1 earnings on Oct. 1 after the market closes. Ahead of the release, analysts expect the company to report diluted EPS of 44 cents, down 10.2% from 49 cents in the year-ago quarter. That said, NKE has exceeded Wall Street’s EPS estimates in each of the past four quarters, highlighting its consistent earnings performance.
For fiscal 2027, analysts expect the company to report EPS of $1.66, reflecting a 5.1% increase from $1.58 in fiscal 2026. Moreover, EPS is projected to increase another 30.7% year over year to $2.17 in fiscal 2028.
NKE stock has plunged 48.4% over the past 52 weeks, significantly underperforming the S&P 500 Index ($SPX), which gained 17.2%, and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY), which declined 6.4% over the same period.
NIKE’s recent struggles stem from sluggish revenue growth, weak cash generation and declining returns on capital. Over the past two years, the company’s constant-currency revenue performance has remained underwhelming, while weaker free cash flow has limited its ability to reinvest in growth, repurchase shares or return capital to shareholders. Meanwhile, declining returns on capital have raised concerns about the effectiveness of its investments and weighed on investor sentiment.
Analysts remain neutral on NKE, with the stock carrying a consensus “Hold” rating. Among the 39 analysts covering the stock, nine recommend a “Strong Buy,” two suggest a “Moderate Buy,” 22 rate it a “Hold,” one recommends a “Moderate Sell,” and five suggest a “Strong Sell.” Meanwhile, the average analyst price target of $46.33 implies potential upside of 29.6% from the current share price.
