Nike: 4 Reasons to Fear Earnings

It's do -r-die time for Nike ( NKE ) bears, with the athletic apparel giant set to release earnings after the close today. If you recall, Nike was the worst outperforming stock in the Dow Jones Industrial Average last year amid concerns that it was losing market share to competitors like Under Armour ( UA ) and Adidas ( ADDYY ). In mid-December, I argued that Nike's sickly performance would continue into the new year ...and it's been a terrible call so far . Shares of Nike have gained 14% so far this year, making it the Dow's second-best performer in 2017, lagging only Apple. So why is now do-or-die time ? Because Nike is set to release earnings after the close, and its numbers could go a long way to determining whether the bulls or the bears have got it right. Morgan Stanley analyst Jay Sole , for instance, recently argued that Nike's earnings could make it safe for bulls again , while Piper Jaffray’s Erinn Murphy sees tougher times ahead . In a note released today, Canaccord Genuity's Camilo Lyon put himself firmly in the bearish camp: