Financial Data and Key Metrics - Q2 revenues were down 8% on a reported basis and down 9% on a currency-neutral basis, reflecting ongoing headwinds from franchise management actions [31] - Gross margins declined 100 basis points to 43.6% due to higher markdowns on NIKE Direct, wholesale discounts, and channel mix headwinds, partially offset by lower product costs and strategic pricing actions [31] - Earnings per share was $0.78 [31] - NIKE Direct declined 14%, with NIKE Digital down 21% and NIKE Stores down 2%, while wholesale was down 4% [31] - Inventory was flat versus the prior year, with footwear inventory declining and apparel and accessories inventory increasing [33] Business Line Performance - Sport performance field of play grew year-over-year, offset by a double-digit decline in sportswear [35] - Training: men's up high teens, women's up high single-digits, kids up high single-digits [35] - Global Football: men's grew low single-digits, kids grew high teens [35] - Basketball: women's grew strong double-digits, kids grew low teens [35] - Running: men's was flat, women's up low to mid-single digits [36] - Classic footwear franchises decelerated faster than the overall business, with a greater rate of decline in Q2 compared to Q1 [36] Market Performance - North America: Q2 revenue down 8%, NIKE Direct declined 15%, wholesale declined 1%, EBIT declined 10% [37] - EMEA: Q2 revenue declined 10%, NIKE Direct declined 20%, wholesale declined 4%, EBIT declined 10% [39] - Greater China: Q2 revenue declined 11%, NIKE Direct declined 7%, wholesale down 15%, EBIT declined 27% [40] - APLA: Q2 revenue down 2%, NIKE Direct declined 4%, wholesale declined 1%, EBIT declined 12% [41] Strategic Direction and Industry Competition - The company is shifting focus back to sport, leveraging athlete insights to accelerate innovation, design, and product creation [13] - Investments will be rebalanced to empower local teams and create stronger consumer connections in key countries and cities [14] - The company plans to elevate NIKE Direct as a premium destination, focusing on full-price sales and reducing promotional activity [25] - The company is committed to rebuilding trust with key wholesale partners by delivering innovative products and supporting their businesses [26] Management Commentary on Operating Environment and Future Outlook - The company is taking a long-term view, making decisions that prioritize the health of the brand and business, even if they negatively impact near-term results [29] - The company expects Q3 revenues to be down low double-digits, with gross margins down 300-350 basis points, reflecting actions to clean and reset the marketplace [46] - The company is accelerating actions to reposition the business, including reducing promotional activity, liquidating excess inventory, and increasing brand marketing [43][44] Other Important Information - The company is focusing on five key sports: running, basketball, training, football, and sportswear, with a segmented approach by men's, women's, and kids [61] - The company is investing in sports marketing, with recent long-term partnership extensions with the NFL, NBA, WNBA, and Brazil Football Confederation [62] Q&A Session Summary Question: How is the company planning to rebuild relationships with retail partners and regain shelf space? - The company is committed to leading a consumer-led marketplace, delivering innovative products, and supporting wholesale partners to drive mutually profitable growth [54][55] Question: What are the key investments being made to return the brand to growth? - The company is focusing on sport-led product innovation, increasing brand marketing, and empowering local teams in key countries and cities [60][61] Question: How will the company manage near-term financial pressures while making long-term investments? - The company is prioritizing margin health over sales growth in the near term, with actions to clean up inventory and reposition the marketplace expected to create short-term headwinds [71][76] Question: What is the timeline for returning to sustainable, profitable growth? - The company expects to see the impact of its actions over the next 18-24 months, with a focus on returning to a healthy, full-price marketplace and driving long-term growth [80][84] Question: What are the specific actions being taken in North America and Greater China? - In North America, the company is resetting NIKE Direct, investing in running specialty, and leveraging key sports moments to drive growth [96] - In Greater China, the company is focusing on product innovation, local product creation, and resetting the marketplace to drive long-term growth [98]

Nike (NKE) reported $12.35 billion in revenue for the quarter ended November 2024, representing a year-over-year decline of 7.7%. EPS of $0.78 for the same period compares to $1.03 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $12.08 billion, representing a surprise of +2.27%. The company delivered an EPS surprise of +23.81%, with the consensus EPS estimate being $0.63.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how th ...

Nike’s results beat modest estimates on Thursday and its shares jumped briefly, but the company soon dashed investor hopes and sent shares lower when a top executive predicted revenues would fall by double digits in the third quarter.Nike’s new CEO Elliott Hill warned of short-term pain as the embattled sportswear seller works to revive tepid demand for its brands. Shares of Nike surged 11% immediately after the earnings report but gave up those gains after Hill and CFO Matthew Friend reined in expectations ...

Nike (NKE) came out with quarterly earnings of $0.78 per share, beating the Zacks Consensus Estimate of $0.63 per share. This compares to earnings of $1.03 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 23.81%. A quarter ago, it was expected that this athletic apparel maker would post earnings of $0.52 per share when it actually produced earnings of $0.70, delivering a surprise of 34.62%.Over the last four quarters, the compa ...

Financial Data and Key Metrics Changes - Q2 revenues decreased by 8% on a reported basis and 9% on a currency-neutral basis, primarily due to franchise management actions [32] - Gross margins declined by 100 basis points to 43.6% on a reported basis, impacted by higher markdowns and channel mix headwinds [32] - Earnings per share was reported at $0.78 [33] Business Line Data and Key Metrics Changes - NIKE Direct revenues fell by 14%, with NIKE Digital down 21% and NIKE Stores down 2% [32] - The sport performance field of play grew year over year, while sportswear experienced a double-digit decline [37] - In North America, NIKE Direct declined 15%, with NIKE Digital down 22% and NIKE Stores down 3% [39] Market Data and Key Metrics Changes - In Greater China, Q2 revenue declined by 11%, with NIKE Direct down 7% and wholesale down 15% [44] - EMEA revenue decreased by 10%, with NIKE Direct down 20% and NIKE Digital down 32% [42] - APLA revenue was down 2%, with NIKE Direct declining 4% and NIKE Digital down 8% [47] Company Strategy and Development Direction - The company aims to reposition the business by focusing on sport and athlete-centric strategies, emphasizing the need to leverage its strengths [12][13] - Plans include a shift towards a full-price model and reducing reliance on promotional activities [50] - The company is committed to rebuilding relationships with wholesale partners and enhancing brand marketing efforts [26][62] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges in the current macro environment but expressed optimism about the potential for growth through strategic actions [46][49] - The focus will be on creating a consumer-led marketplace and driving innovation through sport [62][99] - Management expects Q3 revenues to decline low double digits, with gross margins down approximately 300 to 350 basis points [53] Other Important Information - The company is increasing investments in brand marketing and sports marketing to support key product launches [51] - There is a commitment to clean up the marketplace and reduce aged inventory to create space for new products [50][93] - Management is optimistic about the upcoming product pipeline and the potential for returning to growth [79][90] Q&A Session Summary Question: Can you elaborate on the relationships with retail partners and earning back shelf space? - Management emphasized the commitment to leading a consumer-led marketplace and the positive reception from wholesale partners regarding innovative products and brand statements [61][64] Question: How are you planning near-term investments in the business? - The focus will be on putting sport at the center of operations, shifting investments from performance marketing to brand marketing, and prioritizing five key sports [70][72] Question: What is the expected pressure on 2026 sales due to lifestyle acceleration? - Management acknowledged the need to reduce inventory concentration and is excited about the innovative products coming to market, which will help offset pressure [78][79] Question: How far is the company willing to take short-term actions for long-term benefits? - Management is acting with urgency to reposition the brand and is confident that the investments made will yield positive results in the long term [98][101] Question: What are the key fields of play opportunities? - The company is focusing on five key fields: running, basketball, global football, training, and sportswear, with a strong emphasis on product innovation [105]

Nike (NKE) shares jumped in extended trading Thursday after the athletic apparel maker topped analysts' estimates with its fiscal second-quarter results, its first since new CEO Elliott Hill took over in October. The sneaker giant reported net income of $1.16 billion on revenue of $12.35 billion, above analysts' estimates of $968 million in net income on revenue of $12.12 billion, per Visible Alpha. Last year, Nike posted a profit of $1.58 billion on $13.39 billion in revenue. "We're taking immediate actio ...

About this content About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government ...

Revenue Performance - Second quarter revenues were $12.4 billion, down 8 percent on a reported basis compared to the prior year and down 9 percent on a currency-neutral basis[2]. - Total revenues for Nike, Inc. decreased by 8% to $12,354 million for the three months ended November 30, 2024, compared to $13,388 million for the same period in 2023[18]. - Total revenues for the six months ended November 30, 2024, were $23,943 million, a 9% decrease from $26,327 million in the same period of 2023[18]. Segment Performance - NIKE Direct revenues were $5.0 billion, down 13 percent on a reported basis, primarily due to a 21 percent decrease in NIKE Brand Digital[3]. - Wholesale revenues were $6.9 billion, down 3 percent on a reported basis[3]. - Footwear sales in North America dropped by 14% to $3,236 million for the three months ended November 30, 2024, down from $3,757 million in the prior year[18]. - Total Nike Brand revenues decreased by 7% to $11,950 million for the three months ended November 30, 2024, compared to $12,872 million in the same period in 2023[18]. - Converse revenues decreased by 17% to $429 million for the three months ended November 30, 2024, compared to $519 million in the same period last year[18]. - Equipment sales increased by 14% to $544 million for the three months ended November 30, 2024, compared to $479 million in the same period last year[18]. Profitability Metrics - Net income was $1.2 billion, down 26 percent, and diluted earnings per share was $0.78, a decrease of 24 percent[3]. - Earnings before interest and taxes (EBIT) for Nike, Inc. fell by 27% to $1,392 million for the three months ended November 30, 2024, compared to $1,900 million in the same period last year[20]. - Greater China experienced a 27% decline in EBIT, dropping to $375 million for the three months ended November 30, 2024, from $514 million in the previous year[20]. - North America EBIT decreased by 10% to $1,371 million for the three months ended November 30, 2024, compared to $1,526 million in the same period last year[20]. - The EBIT margin for Nike, Inc. was 11.3% for the three months ended November 30, 2024, down from 14.2% in the prior year[20]. Cost and Margin Analysis - Gross margin decreased 100 basis points to 43.6 percent, primarily due to higher discounts and changes in channel mix[3]. - The effective tax rate was 17.9 percent, consistent with the same period last year[3]. Cash Flow and Shareholder Returns - Cash and equivalents and short-term investments were $9.8 billion, down approximately $0.2 billion from last year[5]. - The company returned approximately $1.6 billion to shareholders, including dividends of $557 million, up 7 percent from the prior year[7]. - As of November 30, 2024, a total of 112.8 million shares have been repurchased under the program for a total of approximately $11.3 billion[7]. Inventory Status - Inventories for NIKE, Inc. were $8.0 billion, flat compared to the prior year[5].

Nike on Thursday will report its fiscal second-quarter earnings, its first quarterly earnings under new CEO Elliott Hill, who is expected to lay out the early innings of a strategy to reverse an ongoing sales decline. Here's what analysts are expecting from the world's largest sneaker company, according to consensus estimates from LSEG:Earnings per share: 64 centsRevenue: $12.18 billionAnalysts are expecting sales to drop more than 9% from the year-ago period and profits to plunge by about 38%. The dismal o ...

EUGENE, OREGON - JUNE 20: The shadow of Allyson Felix is seen next to a Nike logo after finishing ... [+] second place in the Women's 400 Meters Final on day three of the 2020 U.S. Olympic Track & Field Team Trials at Hayward Field on June 20, 2021 in Eugene, Oregon. (Photo by Patrick Smith/Getty Images)Getty ImagesNike is scheduled to report earnings after Thursday’s close. The stock hit a record high of $179.10/share in 2021 and is currently trading near $76. The stock is prone to big moves after reportin ...