Nike Inc (NYSE:NKE) is scheduled to report its earnings for the third quarter of fiscal 2026 on March 31.

The company is likely to report a 200-basis-point (bps) contraction in gross margins and announce its fourth-quarter guidance, while delaying its fiscal 2027 outlook until June, according to BofA Securities.

The Nike Analyst: Analyst Lorraine Hutchinson maintained a Buy rating and price target of $73.

The Nike Thesis: The company is likely to report a decline in total sales of 0.4% for the third quarter, with China sales contracting by 16%, similar to the previous quarter, Hutchinson said in the note.

Check out other analyst stock ratings.

Nike's results are likely to reflect continued progress in North America, the analyst stated. "EMEA sales were flat in 1H, and the impact of global unrest will be a key question for the region," she wrote.

Nike faced significant pressure on gross margins in the back half of the year due to tariff headwinds and the company has been slow to mitigate this impact, as it "remains cautious about pricing during its turnaround," Hutchinson said.

Gross margins may stabilize in the third quarter, as tariff mitigation ramps up, she further stated.

NKE Price Action: Nike shares were down 1.03% at $52.94 at the time of publication on Wednesday. The stock is trading near its 52-week low of $52.17, according to Benzinga Pro data.

Photo: Tada Images on Shutterstock.com