Sales are slower than expected, leading to lower profit margins again.Shares of athletic apparel maker Nike (NKE -5.92%) sank on Wednesday after the company reported financial results for its fiscal first quarter of 2025, pulled its full-year guidance, and delayed its upcoming investor-day presentation. As of 10:30 a.m. ET today, Nike stock was down 7%.Nike's unanswered questionsNike just hired Elliott Hill as its new CEO, but he doesn't start for about another two weeks. It's unfortunate for investors beca ...

Nike Inc's NKE first-quarter financial results showed that a turnaround by incoming CEO Elliot Hill could take longer than expected and come with increasing challenges, according to analysts. The Nike Analysts: RBC Capital analyst Piral Dadhania maintained a Sector Perform rating and lowered the price target from $85 to $82. Truist analyst Joseph Civello maintained a Hold rating and lowered the price target from $85 to $83. Morgan Stanley analyst Alex Straton maintained an Equal-Weight rating with a price t ...

Nike (NKE, Financial) experienced a significant drop of over 8%, reaching $81.77 per share. This decline followed the company's announcement that its first-quarter revenue fell by approximately 10% compared to the same period last year. As a result, Nike will retract its full-year performance outlook and postpone its investor day event. ...

Nike NYSE: NKE shares fell after the Q1 report, which opened an opportunity for investors. The fall is due to numerous factors, including weaker-than-expected results, revoked guidance, and a CEO transition that is ultimately expected to turn the company around. The takeaway is that Nike faces headwinds and has a long road to recovery, but market support remains firm, and recovery is expected. The question is if now is the right time to buy or if the stock will make a deeper correction before the rebound be ...

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades and downgrades, please see our analyst ratings page. Read More: ...

On October 1, Nike (NYSE: NKE) released its Q1 2025 earnings results. The company reported an impressive 34.9% earnings per share (EPS) beat — $0.70 vs consensus estimates of $0.52. However, several key metrics are lagging, and the company is still lagging behind Adidas (ETR: ADS), a key competitor.Revenues were in line with expectations at $11.59 billion compared to estimates of $11.65 billion, but constant currency revenues fell 9% year-on-year (YoY), a stark contrast to Q1 2024, when the decline was just ...

Key TakeawaysNike shares fell in extended trading Tuesday after the apparel and equipment giant withdrew its full-year outlook and said it plans to postpone its upcoming investor day ahead of the company’s transition to a new CEO later this month.The stock has rallied more than 25% from the lower trendline of a falling wedge, though Wednesday’s projected earnings-driven selling threatens to derail the recent bullish price momentum.Investors should monitor key lower price levels on Nike's weekly chart around ...

Back in June 2023, I presented my ‘Strong Sell’ thesis on Nike (NYSE: NKE ), and since then, the stock price has dropped by more than 17% compared to 30% return of S&P 500 ( SPX ) during the sameMore than 15 years of professional investment experience in global equities across all sectors. My investment style is fundamental, bottom-up, long-term, and quality growth-oriented. I am seeking companies specializing in niche markets, with strong growth potential, a solid management team, a sound capital allocatio ...

Core Insights - Nike's flawed direct-to-consumer (D2C) strategy has led to revenue weakness across all channels, with a reported fiscal 2025 Q1 revenue of $11.6 billion, down 10% year over year [1] - The company is attempting to balance its product portfolio and reenergize brand momentum, but a significant turnaround will take time [1] - New CEO Elliott Hill is expected to refocus the brand on its athletic roots while maintaining a balance with the D2C strategy [2] Financial Performance - Nike Direct revenues fell 13% to $4.7 billion, with a 20% drop in Nike Brand Digital sales, although Nike-owned stores saw a 1% increase [1] - Gross margin improved by 120 basis points to 45.4% due to lower product and logistics costs [1] - The company postponed guidance for the remainder of the fiscal year, anticipating similar revenue drops in the upcoming quarter due to promotional pricing on iconic brands [3] Strategic Initiatives - Nike plans to collaborate with wholesale partners like Foot Locker and Dick's Sporting Goods to drive growth [2] - The company aims to increase the mix of full-price products in its direct channels while leveraging supply chain capabilities [3] - There is a focus on driving growth across the entire marketplace, particularly in running and soccer, which have better international distribution [3] Market Positioning - The company is working to reignite growth and momentum with wholesale partners by demonstrating the full dimension of the Nike portfolio across various demographics [4] - Nike is focused on accelerating newness and innovation to create more consumer engagement and energy [4]

Financial Data and Key Metrics Changes - NIKE, Inc. reported a revenue decline of 10% on a reported basis and 9% on a currency-neutral basis in Q1 [21] - NIKE Direct revenue decreased by 12%, while NIKE stores increased by 1%, and NIKE Digital saw a decline of 20% [21] - Gross margins expanded by 120 basis points to 45.4% due to lower product costs and strategic pricing actions [21] - SG&A expenses declined by 2% on a reported basis, with increased demand creation investment offset by reduced overhead expenses [21] Business Line Data and Key Metrics Changes - Revenue from classic footwear franchises, including Air Force 1, Air Jordan 1, and Dunk, declined significantly, contributing to a mid-single-digit headwind on overall revenue [10][11] - New footwear products saw strong double-digit revenue growth compared to the prior year, indicating a positive trend in innovation [17] - The men's and women's lifestyle business was planned down double-digits in Q1, with expectations for continued declines throughout the year [11] Market Data and Key Metrics Changes - In North America, Q1 revenue was down 11%, with NIKE Direct and Digital both declining [22] - EMEA region experienced a 12% revenue decline, with NIKE Digital down 24% [23] - Greater China saw a 3% revenue decline, with NIKE Digital down 34%, although wholesale grew by 10% [25] Company Strategy and Development Direction - The company is focusing on shifting its product portfolio to create better balance and reenergize brand momentum through sport [8] - NIKE plans to introduce and scale new products, particularly in the running segment, which has shown positive growth [14][45] - The company is investing in partnerships to elevate brand presence in retail, such as collaborations with DICK'S Sporting Goods and Foot Locker [20][56] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges in retail sales and elevated inventory levels, particularly in Greater China [32][25] - There is optimism regarding the long-term opportunities in the running segment and overall market growth in China [72][73] - The company expects Q2 revenues to decline in the range of 8% to 10%, with gross margins anticipated to decrease by approximately 150 basis points [26] Other Important Information - The company is undergoing a leadership transition, with Elliott Hill set to become the new President and CEO [6][8] - Full-year guidance has been withdrawn, with plans to provide quarterly guidance instead [8] Q&A Session All Questions and Answers Question: Can you break down the inventory situation regionally, particularly in North America? - Management noted that retail sales have underperformed, leading to slightly elevated inventory levels across regions, including North America [32] Question: What were the biggest challenges that led to unit disappointment in the quarter? - Management identified underperformance in Greater China and general macro softness across geographies as key factors impacting unit sales [34][36] Question: Can you reconcile the lower spring order books with the positive outlook for the second half? - Management indicated that while order books were flat, there is optimism about new product innovation scaling in the second half [41][42] Question: How large are the core franchises being reset, and what are their margins? - Management emphasized the importance of classic footwear franchises while acknowledging the need to reduce their concentration to create better balance in the portfolio [49][51] Question: How receptive are wholesale partners to new launches, and what is the inventory situation? - Management reported positive engagement with wholesale partners and emphasized the importance of managing inventory levels carefully [54][56] Question: How far has the Running business fallen, and what is the plan for recovery? - Management acknowledged market share losses in the Running specialty channel but expressed commitment to reinvesting in that area to regain momentum [61] Question: What are the margin pressures expected in Q2, and how do they vary by region? - Management indicated that margin pressures are expected across the board due to higher promotions and supply chain challenges [64]