Nike is facing a crucial week as it prepares to report its first-quarter earnings on 1st October, following the announcement on 19th September that Elliott Hill, a former Nike executive, will take over as CEO from John Donahoe. While the leadership change was met with optimism, analysts are cautious about the company’s overall performance.
In June, Nike projected a 10 per cent decline in Q1 revenue due to weaker wholesale orders and a softer market in China. It also adjusted its fiscal 2025 guidance, anticipating mid-single-digit revenue declines for the year. Analysts from Morgan Stanley, led by Alex Straton, expect Q1 results to align with Nike’s forecast but suggest further cuts to the full-year guidance may follow.
Sam Poser from Williams Trading shared concerns that Nike’s challenges in innovation and a slowing Chinese market have worsened since the last earnings report. However, he remains optimistic about Hill’s leadership, viewing it as a potential long-term positive for the brand. Despite this, Jefferies analyst Randal Konik warned that it may take several quarters before the effects of Hill’s leadership are felt, with meaningful changes possibly only emerging by fiscal year 2026.
