Beaverton, Oregon-based NIKE, Inc. (NKE) is renowned for its innovative designs in shoes and sports equipment. The company develops, markets, and sells athletic footwear, apparel, equipment, accessories, and services. With a market cap of $85.1 billion, NIKE’s operations span over 190 countries across the Americas, EMEA, and the Indo-Pacific.

The shoe giant is expected to release its Q4 results on Thursday, Jun. 26. Ahead of the event, analysts expect NKE to report an adjusted EPS of $0.10, marking a staggering 90.1% decrease from $1.01 reported in the year-ago quarter. On a positive note, the company has notably outpaced the Street’s bottom-line estimates in each of the past four quarters.

For the full fiscal 2025, analysts expect NKE to deliver an adjusted EPS of $2.15, down 45.6% from $3.95 reported in fiscal 2024. In fiscal 2026, its earnings are expected to further decline 9.3% year-over-year to $1.95 per share.

NKE stock has tanked 38.9% over the past 52 weeks, significantly underperforming the S&P 500 Index’s ($SPX) 10.6% gains and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 12.3% surge during the same time frame.

Despite reporting better-than-expected financials, NKE stock plunged 5.5% in the trading session after the release of its Q3 results on Mar. 20. The company has continued to experience pressure on revenues; its overall topline for the quarter dropped 9.3% year-over-year to $11.3 billion. However, this figure surpassed the consensus estimates by 2.1%. Meanwhile, the company also observed a notable contraction of margins, leading to a 32.3% year-over-year decline in net income to $794 million, but its earnings of $0.54 per share surpassed the consensus estimates by a massive 92.9%.

In recent years, NIKE has focused on generating revenue through its direct channels; however, this strategy hasn’t panned out well for the company. Continuing its downward trajectory, NIKE's direct revenues for the quarter declined nearly 12% year-over-year to $4.7 billion, shattering investor confidence.

Nevertheless, the consensus view on NKE stock remains cautiously optimistic, with a “Moderate Buy” rating overall. Of the 36 analysts covering the stock, opinions include 17 “Strong Buys,” two “Moderate Buys,” 15 “Holds,” and two “Strong Sells.” As of writing, the stock is trading significantly below its mean price target of $75.87.