03:08 PM EST, 12/09/2024 (MT Newswires) -- NIKE's ( NKE ) fiscal Q2 results are likely to show a deterioration of global sales growth trends, potentially resulting in the company issuing weak guidance for fiscal Q3, UBS said in an earnings preview emailed Monday.

Nike's ( NKE ) fiscal Q2 results are expected to show how the company's fundamental trends are "getting worse," UBS said, adding that its research and industry data indicated that Nike's ( NKE ) US direct-to-consumer sales growth rate was "weak" while its European business "underperformed" and its China sales growth trend "disappointed" during the quarter.

The company is also likely to issue a fiscal Q3 earnings guidance of $0.47 to $0.57 per share, below the expected market's benchmark of $0.55 to $0.65 per share, according to the note.

UBS said it agrees with the options market's view of a 7.7% change in the stock's price in either direction following the earnings release versus a 6% historical average move.

Nike ( NKE ) plans to release its fiscal Q2 financial results on Dec. 19.

UBS reiterated its neutral rating on the stock and slashed its price target by $2 to $80.

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