NIKE DUE TO REPORT QUARTERLY EARNINGS AS CHINA SALES SLIDE

Nike is due to report fiscal first-quarter earnings after the market closes on Thursday, as the company led by chief executive Elliott Hill works to reverse a decline in sales. Analysts surveyed by LSEG expect earnings of 43 cents per share and revenue of $11.32 billion. Nike previously said it expects sales across the first two quarters of its 2027 fiscal year to be "flattish". The company has also said it expects gross margin for the quarter to be slightly higher than in the same period last year. Nike executives are due to hold a conference call with analysts at 5pm ET on Thursday.

Former chief financial officer Matt Friend attributed the flat sales outlook partly to a slump in China, long a significant market for Nike. China sales fell 12% in the prior quarter, according to the company. Hill told analysts in June that Nike remains "fully committed" to regaining ground there. David Denton, a former Pfizer executive, became Nike's chief financial officer in August, succeeding Friend. In North America, its largest market, Nike reported $4.83 billion in revenue last quarter, below the $4.88 billion that Wall Street had expected, according to data firm StreetAccount.

For the full 2027 fiscal year, analysts polled by LSEG forecast total revenue of around $45.31 billion, with second-quarter revenue expected near $11.79 billion. Last quarter's results were boosted by a tariff refund of nearly $986 million, which added 52 cents per share to earnings, the company said. Nike is in the midst of a turnaround plan under which it is prioritising improvements to different parts of the business at varying rates. Thursday's figures are expected to show whether that strategy is gaining traction after a prolonged period of weaker sales.