By Sabela Ojea

Nike is scheduled to report earnings for its fiscal third quarter after the market close Thursday. Here's what you need to know:

--PROFIT: Nike is expected to post third-quarter net income of $437.6 million, or 30 cents a share, according to FactSet. This compares with a reported net profit of $1.17 billion, or 98 cents a share, for the same period a year earlier.

--SALES: Nike's quarterly sales are forecast to fall around 11% to $11.02 billion, down from $12.43 billion in the same period a year earlier. Nike most recently guided for third-quarter revenue to be down in the low double digits.

Shares have fallen around 5.9% over the past three months.

WHAT TO WATCH:

--Nike's third-quarter earnings results should be "extremely challenging," according to Jefferies, as a double-digit drop in revenue is expected. However, the market will likely be more focused on the company's messaging regarding its business-model turnaround rather than on its financials, BofA Securities analysts said in a recent research note. Under the leadership of Elliott Hill, Nike is revamping Nike Digital and pushing new seasonal products, and investors will look for signs on how these initiatives are resonating with the consumer.

--Look for comments around Nike's performance in its core North America market after consumer sentiment in the U.S. sank this month to its lowest level since November 2022, according to the University of Michigan's index of consumer sentiment. The company's performance in China will also be watched closely, as market conditions remain difficult there amid continued consumer and promotional pressure, according to Raymond James analysts.

--During the earnings call, all eyes will be on whether Nike provides a detailed outlook. Analysts polled by FactSet expect fourth-quarter revenue to fall around 12% to $11.1 billion. BofA Securities analysts said they would be surprised if Nike communicated explicit fiscal 2026 earnings guidance.

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

(END) Dow Jones Newswires

March 20, 2025 12:56 ET (16:56 GMT)

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