Stock futures slipped in premarket trading on Friday as markets took a breather after a two-day rally spurred by anticipation of interest rate cuts and AI enthusiasm. It was a rough day for sports apparel companies—Lululemon (LULU) stock tumbled after its full-year revenue and earnings guidance fell short of analyst estimates, raising concerns about stagnating U.S. sales. Nike (NKE) fell after its sales outlook also disappointed Wall Street. Treasury yields fell and the dollar climbed as Congress rushed to ...

Despite what its namesake might indicate, Nike Inc. (NYSE: NKE) has suffered a string of significant defeats in the last few days leading to an abysmal extended session performance that saw NKE shares dip 6.47% in the night between March 21 and 22 to below $100. NKE stock 1-day and extended session price chart. Source: GoogleIn the U.K. the clothes manufacturer sparked controversy and even calls for a boycott over a nation-unifying change to the design of the Cross of St. George on the kit of England’s nati ...

Key TakeawaysNike reported revenue and profit for the third quarter of fiscal 2024 that topped analysts' expectations.The company, however, said in its earnings call that revenue in the first half of fiscal 2025 is likely to decline low single digits as Nike shifts its product portfolio and contends with a subdued economic outlook. Nike shares initially jumped after the better-than-anticipated Q3 results but reversed course and finished the extended trading session down nearly 6%. Nike (NKE) stock fell near ...

Financial Data and Key Metrics Changes - In Q3, NIKE, Inc. revenue was up slightly on a reported and currency-neutral basis, with low single-digit growth in the NIKE brand, partially offset by declines at Converse [25][26] - Gross margins expanded 150 basis points to 44.8% on a reported basis, driven by strategic pricing actions and lower ocean freight rates, despite higher product input costs [25][26] - Diluted earnings per share was $0.77, and excluding restructuring charges, earnings per share would have been $0.98, up 24% versus the prior year [26] Business Line Data and Key Metrics Changes - NIKE Direct was up slightly versus the prior year, with NIKE stores up 6% and NIKE Digital down 4%, while wholesale grew 3% [25][26] - Performance footwear grew high single digits, with double-digit growth from franchises including Kobe and Ja in basketball, Metcon and Motiva in fitness, and Structure and Vomero in running [19][27] - Women's fitness footwear grew double digits, and key apparel franchises such as $100-plus leggings continued scaling with strong sell-through [19][27] Market Data and Key Metrics Changes - In North America, Q3 revenue grew 3%, with NIKE Direct growing 2% and wholesale growing 5% [26][27] - EMEA revenue declined 4%, with NIKE Direct declining 4% and wholesale down 5% [27] - In Greater China, Q3 revenue grew 6%, with NIKE Direct declining 1% and wholesale growing 12% [29] Company Strategy and Development Direction - The company is focusing on sharpening its emphasis on sport, driving continuous product innovation, and enhancing brand marketing [6][9] - NIKE is increasing investment in wholesale to elevate the brand and grow the total marketplace [9][10] - The company is transitioning its product portfolio towards newness and innovation while managing key franchises for long-term health [22][24] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the need for adjustments in strategy to better align with consumer demand and market conditions [6][16] - The company is optimistic about its innovation pipeline and expects to see growth in the second half of fiscal '25 [41][49] - Management highlighted the importance of strong brand positioning and consumer engagement to drive sustainable long-term growth [48][55] Other Important Information - The company is committed to its purpose and sustainability goals, making progress against its 2025 targets [16] - NIKE's innovation platform, particularly Air, is a significant competitive advantage and is expected to drive future growth [10][11] Q&A Session Summary Question: Fiscal '25 commentary on operating margin and changes in the operating model - Management discussed the adjustments made to focus on consumer and sport, integrating the best of category offense with a gender umbrella [37][39] Question: New multi-year innovation cycle and growth profile - Management emphasized the robust pipeline of innovation and the importance of newness in driving consumer impact and long-term growth [44][49] Question: Pricing power and markdown opportunities - Management noted that strong brand strength allows for strategic pricing, which is expected to continue driving profitability [53][55] Question: Trends in the Chinese market and franchise management - Management highlighted strong growth in China and the importance of physical retail, while also managing franchises for long-term health [58][61]

Nike may have beaten the street with its fiscal year Q3 earnings, but it’s hardly taking a victory lap. Acknowledging that this was a “difficult time” for the brand, CEO John Donahoe told Thursday’s earnings call that some adjustments are in store, and that further distance from its direct-to-consumer initiatives may be necessary.“We need to sharpen our focus on sport, we must drive a continuous flow of new product innovation,” Donahoe said. “Our brand marketing must become bolder and more distinctive. And ...

Nike warned on Thursday that its revenue in the first half of fiscal 2025 would shrink by a low single-digit percentage as the world’s largest sportswear maker scales back on franchises to save costs.Nike’s warning came after the stock market closed, and shares were down 5.6% in extended trading. Executives acknowledged that Nike’s direct-to-consumer strategy was not driving growth as expected and that it was losing ground in the running category.In December, Nike outlined a $2 billion savings plan, which i ...

Key TakeawaysNike stock fell after markets closed on the company's third-quarter earnings.The athletic apparel brand surpassed analysts' revenue and income estimates.Nike paid out $562 million in dividends and bought back $866 million in stock during the third quarter.Executives reportedly laid out plans to continue scaling back inventory as part of plans to cut $2 billion in costs. Nike (NKE) stock fell in post-market trading Thursday on a fourth quarter earnings report that beat analysts' expectations in ...

Nike (NKE) reported $12.43 billion in revenue for the quarter ended February 2024, representing a year-over-year increase of 0.3%. EPS of $0.98 for the same period compares to $0.79 a year ago.The reported revenue represents a surprise of +1.22% over the Zacks Consensus Estimate of $12.28 billion. With the consensus EPS estimate being $0.69, the EPS surprise was +42.03%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine thei ...

Nike (NKE) came out with quarterly earnings of $0.98 per share, beating the Zacks Consensus Estimate of $0.69 per share. This compares to earnings of $0.79 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 42.03%. A quarter ago, it was expected that this athletic apparel maker would post earnings of $0.84 per share when it actually produced earnings of $1.03, delivering a surprise of 22.62%.Over the last four quarters, the compa ...

The Nike logo is displayed at a Nike Well Collective store on February 16, 2024 in Glendale, California.Nike on Thursday reported holiday sales that beat estimates, helped by better than expected growth in North America.Here's how the company performed compared with what Wall Street was anticipating, based on a survey of analysts by LSEG, formerly known as Refinitiv:Earnings per share: 77 cents vs. 74 cents expectedRevenue: $12.43 billion vs. $12.28 billion expectedThe company's reported net income for the ...