Bank of America Securities released a report stating that Nike (NKE.US) 2025 fiscal year guidance will be the focus of the earnings call, as the Q4 fiscal year 2024 results only reflect the sales and profit trend entering this year. The bank believes that there is enough profit leverage to support profitability in the short term, and good news about innovation and new products is beginning to emerge. The bank does not expect new products to translate into sales growth in the first half of fiscal 2025, but will lay the foundation for turning the tide in the second half of the year.

The bank also pointed out that Nike's China business continues to fluctuate. In the Q3 fiscal year 2024 earnings call, Nike indicated that sales in the first half of fiscal 2025 would decrease by a low single digit, reflecting product cycle management and global macro challenges. Nike raised macroeconomic concerns in China and Europe, but investors have recently begun to focus on North America as well. The bank expects investors to expect a low single-digit decline in sales guidance for the first half of fiscal 2025 and discuss the need for the company to accelerate growth in the second half of the fiscal year to achieve positive full-year sales growth.

The bank expects Nike to guide full-year earnings per share lower than market expectations of $3.94, but believes investors have already anticipated this. The bank reiterated a 'buy' rating on Nike with a target price of $113.