By Kelly Cloonan


Nike is scheduled to report its fiscal third-quarter results on Tuesday. Here is what you need to know.


NET INCOME: The sportswear brand is expected to post a profit of $424.9 million, compared with $794 million the year before, according to FactSet.

REVENUE: The company is expected to report $11.23 billion in sales, compared with $11.27 billion in the year-ago quarter, according to FactSet.

The stock has declined 16% over the past three months and recently traded around $51.58.


WHAT TO WATCH:

--Nike has been looking to stage a turnaround, including efforts to rebuild its wholesale channel, grow its running business and clear out old inventory. The company's strategy has hit some snags, though, with continued weak demand in China, tepid growth in North America and added tariff costs posing further obstacles. Analysts will be looking to hear when the company expects to see its efforts pay off, especially as the conflict in the Middle East and higher gas prices cloud the outlook for consumer spending.

--Nike's sales in North America remain a key focus as its turnaround efforts continue. Sales in the region returned to growth in the fiscal second quarter, however some investors worry that the inflection was largely driven by its wholesale channel or a pull-forward in demand, rather than by improving direct-to-consumer sales. "Our intraquarter checks largely corroborate these arguments," and show that trends in Europe have deteriorated, Deutsche Bank analysts said. They added that some of Nike's new running products are also increasingly showing up in off-price stores.

--Nike's guidance will also be a particularly hot topic for investors. The company's fiscal fourth-quarter guidance could come in well below Wall Street's estimates, testing investor patience with no meaningful catalysts ahead, Deutsche Bank analysts said. The company has also historically given a high-level outlook for the next fiscal year during its fiscal third-quarter call, though it's uncertain if that will happen this time around. UBS analysts said they don't expect any fiscal 2027 commentary, given management has been providing only forward-quarter outlooks lately.


Write to Kelly Cloonan at kelly.cloonan@wsj.com


(END) Dow Jones Newswires

03-30-26 1434ET