Earnings Preview: Nike Inc.

PORTLAND, Ore.

Nike Inc., the world's largest athletic shoe maker, reports its third-quarter results after the stock market closes on Wednesday.

WHAT TO WATCH FOR: Signs that sales and consumer sentiment are improving for Nike, as company executives said that the company was beginning to see early indications of both during the previous quarter.

Nike's sales and profit have dipped during the economic downturn as shoppers bought less but it controlled the impact with cost cuts and tighter inventory. Now it's now looking to major global sporting events, like the World Cup soccer tournament, to drive sales growth.

The third quarter, which started Dec. 1, is Nike's first full fiscal quarter since the scandal over key endorser Tiger Woods erupted with his Nov. 27 car crash. The company has supported the golfer but said little about what impact his hiatus from golf has had on its bottom line.

WHY IT MATTERS: As one of the world's largest and most resilient brands, Nike can be a barometer of what consumers around the world are -- and aren't -- buying.

WHAT'S EXPECTED: Analysts polled by Thomson Reuters expect Nike to earn 88 cents per share on revenue of $4.6 billion.

LAST YEAR'S QUARTER: Nike earned 50 cents per share on revenue of $4.4 billion. Excluding a charge tied to its acquisition of Umbro PLC, the company earned 99 cents per share in last year's quarter.