Ahead of Nike Inc.’s second quarter earnings report on Thursday, Wall Street sees more than just a few green shoots.

Analysts are feeling fairly positive about Nike’s prospects for the second quarter report and beyond. The early read sees consumer receptivity to new product launches, and a return to strength in wholesale momentum. While its China business appears to still require more work, cleaner inventory and North American momentum could offset some of that weakness.

Williams Trading analyst Sam Poser on Friday said that “positive inflections are underway,” which he expects will accelerate into 2026. Poser said second quarter results and third quarter guidance are “likely to exceed consensus estimates.”

“Jordan brand and Nike running are gaining momentum. Retailers are reporting a steady improvement in product offerings,” the analyst said, noting that global wholesale revenue growth and corresponding sell-through rates “outside of Greater China are gaining momentum and will continue to do so.” He doesn’t expect direct-to-consumer (DTC) sales to improve until Fiscal Year 2027.

Poser sees sales trends in North America to do better as new products gain momentum. They include the Vomero Plus, Vomero Premium, the Pegasus Premium, the V5 and Retro Jordans. He noted that the Air Jordan 4 (Black Cat) at $220 that was launched on Black Friday sold out before the Thanksgiving weekend ended.

“The [Air] Jordan 11 (Gamma) at $235 [that launches Saturday] is expected to drive better sales than the Jordan 4,” he predicted.

Another Nike shift is the trend toward bigger launches with less frequency. That change has resulted in the “creation of compelling key event periods,” the analyst concluded. And while Dunk sales continue to remain challenged, Poser said Air Force One sales are beginning to increase on a year-over-year basis.

Offsetting weakness in the Dunk franchise is the increase in shipments of core, sub-$100 dollar footwear to the family footwear and department store channel. He noted that billions of lost sales resulted when Nike shifted to DTC between 2020 and 2024, leaving the family footwear and department store channels “in the lurch.” However, recent commentary about Nike from Academy Sports + Outdoors, Caleres and Genesco has been positive, he said.

Poser sees opportunities ahead in family footwear, particularly as new product is being designed for the moderate channel. That has also reopened engagement with some retailers such as Shoe Show and Amazon, although now in a more controlled manner.

“The margin profile of sales to the family footwear and department store channel is much more glamorous than most of the product sold there,” Poser noted.

Also a bright spot for the Swoosh is that the spring 2026 order book for January through March was up, with the order book for May through July 2026 “likely to be up more than the prior quarter.” Poser expects future orders from North America, EMEA (Europe, Middle East and Africa) and APLA (Asia Pacific and Latin America) to offset weakness in China, which probably won’t fully stabilize until the end of Fiscal Year 2026.

The recent realignment of the C-suite, which included the elimination of the chief commercial officer post held by Craig Williams, was viewed as positive for Nike and its core Swoosh brand. He noted that the recent realignment of Nike’s senior leadership team “has been received well by Nike’s customers.”

BTIG’s Robert Drbul believes Nike is making meaningful progress with its strategy and recovery. “We expect second quarter ’26 to provide tangible evidence of progress with the Win Now strategy and the Sport Offense,” he said, adding that over the longer term, Nike can return to more than 12 percent long-term operating margins, up from 6.5 percent this year.

He is projecting second quarter total revenues of $12.2 billion and earnings per share of 36 cents.

Turning to next year, the market watcher is anticipating the launches of the Mind 001 and Mind 002 shoes in early January. “Mind 001 is a slide retailing at $95 and Mind 002 is a sneaker at $145. “These are being marketed as pre-game mules and pre-game shoes,” Drbul said, adding that the line is positioned as a “sensory intervention” in an athlete’s pregame ritual.

He also highlighted Nike’s Project Amplify, a powered footwear system — the brand has partnered with robotics firm Dephy — for running and walking designed to help everyday athletes go a bit faster and farther with less effort. Although still in early testing, Drbul said Nike is blending art and science to reach performance readiness and he expects the footwear system could see a broad consumer launch in the coming years.

The BTIG analyst also has high hopes for Nike to drive interest in athletic footwear and apparel in the first half, given the high level of Nike brand visibility with the Super Bowl, the NBA All-star Weekend, the Winter Olympics and finally the 2026 World Cup, which will be held in the U.S. for the first time in 32 years.

Another opportunity for the Swoosh brand is its Nike Cortez sneaker, a retro shoe that typically sells for under $100 and which the analyst said has been “gaining heat in fashion arenas.” While the sneaker was first launched at the 1972 Munich Olympics targeting long-distance runners, the shoe appears to have made its way to mainstream culture. Citing to a report from Lyst, Drbul said the Cortez saw a 51- percent rise in search last year. The analyst believes interest remains robust today, with search interest hitting a three-month high last week.

“While the US. consumer continues to search for value, we would note that when value meets fashion, the consumer is responding,” Drbul concluded.

Jefferies’ Randal Konik said that despite tariff headwinds and clearance selling, second quarter results “should show Nike building off fiscal first quarter momentum in early proof of concept areas like running, wholesale and North America.” He and his research team expect a modest beat of Wall Street’s consensus expectations, as well as an acceleration in the second half due to easy compares. Consensus estimates call for adjusted diluted earnings per share of 38 cents on revenue of $12.21 billion.

Konik said new product traction and strong wholesale momentum are driving the outperformance at Nike, and he sees North America momentum building due to broad-based sport activity under both Sport Offense and Win Now. And he noted that enhanced presentation and storytelling are supporting strong order book grwoth into holiday and spring ’26.

The analyst also noted that his team’s retail checks around Black Friday indicate shallower Nike discounts versus last year, which is consistent with tighter inventories and better pricing power ahead.

“Simply put, Nike has largely cleared the glut, a key positive for margin recovery and in-stock positions heading into the back half,” Konik concluded.