UBS has warned that Nike's upcoming earnings report may act as a negative catalyst, predicting weak Q3 guidance and EPS projections below market expectations due to deteriorating global sales trends. The bank estimates EPS guidance between $0.47 and $0.57, below the consensus of $0.55-$0.65. Despite recent underperformance, some investors remain optimistic about a recovery, though UBS cautions that these expectations may be premature, given challenges in U.S. sales, European underperformance, and declining global search trends.