Nike Stock Climbs Ahead of Q1 Earnings Amid Declining Revenue Expectations

Nike Inc.'s (NYSE:NKE) shares are trading higher on Thursday ahead of its first-quarter earnings report, which is due after market close. The company's stock has been stuck in a downtrend despite its long run of topping Wall Street's revenue and earnings forecasts.

According to analysts, Nike is expected to post first-quarter revenue of $11.33 billion, down from $11.72 billion a year earlier. Despite this decline, the company has topped revenue forecasts for seven straight quarters and in eight of the last 10 overall.

The company's last report, covering the fiscal fourth quarter ended May 31, showed full-year revenue of $46.4 billion, flat on a reported basis but down 2% once currency effects are stripped out. Wholesale revenue grew 4% to $6.6 billion, while Nike Direct fell 7% to $4.1 billion.

A beat in both revenue and earnings would extend Nike's streak of topping Wall Street's numbers, but it may not be enough on its own to break the stock out of its slump without something more concrete, like a major new launch or an acquisition, to shift the broader narrative.