Wall Street anticipates Nike's earnings report, which will be released after the market closes.

• Nike will report fiscal first quarter earnings after the bell on Tuesday.
• LSEG analysts predict earnings per share of 52 cents on revenue of $11.65 billion.
• The conference call with analysts for the sneaker giant will take place at 5 p.m. ET.

The company will report quarterly earnings on Tuesday, with investors bracing for another set of less-than-stellar results. Last month, the company announced that CEO John Donahoe would be stepping down.

According to consensus estimates from LSEG, analysts anticipate the world's largest sneaker company's fiscal first quarter of 2025 performance.

• Earnings per share: 52 cents
• Revenue: $11.65 billion

Sales are predicted to decline by 10% compared to the previous year, while profits may fall by approximately 45%.

Despite a recent reset at Nike, the company faces a grim outlook due to accusations of lagging behind on innovation and losing market share to competitors. Over the past year, Nike has shifted its focus towards selling directly to consumers through its own websites and stores, rather than through wholesalers like Foot Locker and Finish Line.

On October 14th, Nike announced that Elliott Hill would be replacing Donahoe as CEO.

Despite Donahoe's leadership, the company's annual sales growth of more than 31% was achieved through the discontinuation of legacy franchises such as Air Force 1s, Dunks, and Air Jordan 1s, rather than through the introduction of innovative styles that made the company a global powerhouse.

Nike's board has chosen Hill, who spent 32 years with the company before retiring in 2020, to lead its next chapter, despite Donahoe's previous statements about the need to improve innovation and mend relationships with wholesalers.

During the company's conference call with investors on Tuesday afternoon, it is anticipated that Donahoe will be present. However, attendees will closely monitor for any hints regarding the company's future direction under Hill's leadership.

The new CEO must revitalize Nike's innovation process, rebuild its connections with retailers, and boost employee motivation following a string of layoffs and a cultural collapse.

The U.S. sneaker market has seen little growth, with consumer spending on discretionary goods like new clothes and shoes being slow, making Nike's position even more challenging.

Euromonitor predicts that footwear sales in the U.S. will increase by only 2% this year, following a stagnant period between 2022 and 2023. However, athletic footwear is expected to see growth of approximately 5.6%.

Nike's earnings report will also be influenced by the uneven economy in China, its third-largest market by revenue. The financial health of the region is often reflected in Nike's performance in China, which has been a concern in late June with a "softer outlook." However, China's central bank recently announced its largest stimulus measures since the Covid pandemic, which is expected to positively impact the region's economy.

Nike's fiscal first quarter would have ended before the stimulus measures were implemented, but executives may provide insights on how sales are performing during the current period.

On Monday, Nike's shares closed at $88.40, a 19% decline year-to-date, significantly lagging behind the S&P 500's 21% increase.