Nike will report fourth-quarter fiscal 2026 earnings on Thursday showing continued revenue declines as the company works through inventory cleanup and softer demand in China and North America. Major Wall Street analysts have forecast another quarter of contraction under CEO Elliott Hill's turnaround plan.

Hill, who returned to lead Nike in late 2024, has prioritised rebuilding wholesale relationships and refocusing on athletic performance products after years of heavy reliance on direct-to-consumer sales. The company is clearing aging inventory of lifestyle franchises, a process that has pressured gross margins. Management has signalled that fiscal 2026 would mark a transition year before a return to growth.

Investors will focus on gross margin trends, the pace of inventory normalisation, and commentary on the Chinese market, where Nike has lost share to domestic brands Anta and Li-Ning. Wall Street expects questions about the impact of US tariffs on footwear sourced from Vietnam and Indonesia, which have raised cost pressures across the industry.

Nike shares have underperformed the broader market over the past year, and traders have positioned for volatility around the report. A clearer signal that the wholesale reset is gaining traction, or improved guidance for fiscal 2027, could lift sentiment. Continued margin erosion would likely renew pressure on the stock.

The results will offer one of the clearest reads yet on whether Hill's strategy is restoring momentum at the world's largest athletic apparel maker, which competes with Adidas, On and Hoka in an increasingly crowded market.