Nike is scheduled to report its fiscal fourth-quarter results after the market close on Tuesday. The company stated that the results will include an unexpected benefit from tariff refunds, which was not included in its previously provided guidance. Nike had projected a sales decline of 2% to 4% for the quarter.

Wall Street estimates, based on a survey by LSEG, project a sales increase of 1.9% for the quarter and revenue of $10.86 billion. Analysts also expect earnings per share to be 13 cents. Nike Chief Financial Officer Matt Friend stated the company expects sales to fall by a low single-digit percentage for the remainder of the calendar year.

Friend stated that the expected sales decline is led by growth in North America but offset by a drop in China. Nike reported a 3% sales increase in North America during its fiscal third quarter. Conversely, the company's revenue in the Greater China market decreased 7% to $1.62 billion in the fiscal third quarter. Nike's gross profit margin also decreased in the fiscal third quarter due to higher tariffs in North America.

Elliott Hill, the CEO of Nike, stated that parts of the business Nike initially focused on turning around are beginning to see momentum. Friend stated that Nike could face unexpected impacts from the broader economic backdrop, including volatility from rising oil prices and lowered consumer confidence. He added, "We are focused on what we can control."

Nike announced that David Denton, a former executive at Pfizer, will replace Matt Friend as CFO effective August 17. The company cut 1,400 roles across the organization in April, marking the second such workforce reduction for Nike within the year. Nike will host a conference call with analysts at 5 p.m. ET.