01:57 PM EDT, 06/16/2025 (MT Newswires) -- Nike's ( NKE ) fiscal fourth-quarter results are likely to match Wall Street's expectations, though the company could issue a "weak" quarterly outlook, UBS Securities said Monday.

Channel checks indicate that the athletic footwear and apparel maker's global sales growth trend "deteriorated" over the past three months, UBS analysts, including Jay Sole, said in a note to clients. The company is scheduled to announce fourth-quarter results June 26.

UBS is projecting adjusted earnings of $0.12 a share, matching the Street's views. The brokerage lowered its sales projection to $10.71 billion from $10.79 billion versus the Street's $10.7 billion estimate.

UBS expects Nike ( NKE ) to provide an implied EPS outlook in the range of $0.11 to $0.27 for the first quarter of fiscal 2026, below the market view of $0.37, according to the note.

"The bottom line is we think (Nike's ( NKE ) fourth-quarter) report will cause Street EPS estimates to drop and market sentiment to weaken," Sole wrote. "We believe Nike's ( NKE ) (fourth-quarter US direct-to-consumer) sales growth rate was weak (year on year), its Europe business underperformed, and its China sales growth trend disappointed."

Sales of the Nike brand and Converse ( NKE ) in the fourth quarter are expected to be down about 15% each amid "continued pressures to core Nike ( NKE ) franchises and a competitive environment," according to Sole.

"We anticipate broad-based topline pressures across Nike's ( NKE ) geographies, with the greatest pressures anticipated within Greater China and (the Europe, the Middle East and Africa market)," Sole said. "We expect Nike's ( NKE ) demand remains pressured as traffic remains negative across brick and mortar and its online business as well as innovation have not fully connected with consumers."

Reduced promotional offerings on Nike's ( NKE ) digital business also likely "significantly" weighed on unit sales, Sole said.

UBS, however, raised its projections for fiscal 2026. It now forecasts adjusted EPS of $0.95 on revenue of $43.18 billion, compared with its previous projections of $0.75 on revenue of $42.33 billion. For 2027, the brokerage is still modeling adjusted EPS of $1.55, but raised the revenue estimate to $44.89 billion from $44.39 billion.

The revised 2026 forecast assumes greater foreign exchange tailwinds than previously expected, the brokerage said. It projects "a lower adverse impact on Nike's ( NKE ) unit volumes sold due to price increases from tariffs" versus its previous expectations, Sole said.

UBS has a neutral rating on the Nike ( NKE ) stock, with a $56 price target.

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