PREVIEW: Nike stock climbs as investors focus on falling sales

Nike NKE shares climbing 1.3% on Thurs ahead of qtrly results after the bell, with low expectations from investors as the sports brand struggles with falling sales and competition from trendier rivals

Analysts expect qtrly rev down 15% to $10.72 bln, with adjusted EPS seen at $0.13 vs $1.01 yr-ago, per LSEG, as the co continues to discount old inventory and rebuild retailer relationships

Investors on the conference call will focus on product innovation, NKE's efforts to clear out old inventory and recent moves into new wholesalers, Telsey Group analyst Cristina Fernandez wrote in a client note last week

NKE stock recently at 32 times expected earnings, slightly above its avg forward PE of 31 over past five years, suggesting it may be close to fairly valued

The stock has slipped about 19% year to date, compared to a 4% rise in the S&P 500 .SPX, and is about 35% below its 52-week intraday high of $94.73 reached on Jun. 27, 2024

NKE's recent leadership changes, including the retirement of chief longtime innovation officer John Hoke, will also be in focus as investors consider the impact on co's strategic direction