Nike Reports Disappointing Earnings and Outlook
Nike delivered another underwhelming earnings report with a revenue decline in its first quarter, falling short of analyst expectations. The company reported $11.2 billion in revenue for the period, down 4% year-over-year, despite hosting one of the biggest sporting events — the FIFA World Cup — during that time. While Nike managed to expand gross margins and reduce operating expenses, earnings per share only slightly beat estimates at $0.48 versus expectations of $0.43. The company's guidance for fiscal 2025 was even more concerning, with a forecasted revenue decline in the high single digits — implying an overall drop around 10% from current levels. Nike attributed this to supply reductions across key segments like Jordan and Greater China but warned that these decisions will impact performance into 2028. The EPS guidance of $1.15-$1.35 also fell well below expectations, contributing to a sharp sell-off in the stock. Nike's CEO Elliott Hill has been at the helm for two years without significant improvement, and investors are growing impatient with ongoing challenges across key markets like sportswear and China.
Tickers: $NKE
Topics: guidance_downgrade operating_income revenue_decline stock_performance