Trainers and sportswear giant Nike (NKE:NYSE) has endured a troubled 2023, hit by slowing consumer spending and difficulties in its key Chinese market. The shares are down nearly 20% year-to-date and to regain some air, the company needs to impress when it posts first-quarter earnings on 28 September.

Weak numbers from some of Nike’s key retail partners in the US, including Foot Locker (FL:NYSE) and Dick’s Sporting Goods (DKS:NYSE) mean the backdrop is less encouraging heading into this latest release, which covers the three months to 31 August.

On 28 June Nike posted its first miss against earnings expectations for the fourth quarter as margins took a hit. Earnings per share was marginally below forecasts but was notable given revenue was materially ahead of expectations at $12.8 billion. Pressure on profitability came as the company allocated more money to marketing and promotions as well as elevated product input and freight costs.

One area which may be closely monitored and a potential bright spot for the company is its Jordan brand – formed through its partnership with legendary basketball player Michael Jordan. For the 12 months to 31 May 2023, the Jordan brand accounted for 12.9% of overall sales as it enjoys strong growth.

US UPDATES OVER THE NEXT 7 DAYS

QUARTERLY RESULTS

September 26: Cintas, Costco

September 27: Micron, Paychex

September 28: Accenture, CarMax, Carnival, Nike

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