Core Viewpoint - Nike reported quarterly earnings of $0.49 per share, exceeding the Zacks Consensus Estimate of $0.27 per share, but down from $0.7 per share a year ago, indicating an earnings surprise of +81.48% [1] - The company has consistently surpassed consensus EPS estimates over the last four quarters [2] Financial Performance - Nike's revenues for the quarter ended August 2025 were $11.72 billion, surpassing the Zacks Consensus Estimate by 6.49%, compared to $11.59 billion in the same quarter last year [2] - The current consensus EPS estimate for the upcoming quarter is $0.51 on revenues of $11.97 billion, and for the current fiscal year, it is $1.67 on revenues of $45.78 billion [7] Market Performance - Nike shares have declined approximately 8.1% since the beginning of the year, while the S&P 500 has gained 13.3% [3] - The company's Zacks Rank is currently 4 (Sell), indicating expected underperformance in the near future [6] Industry Outlook - The Shoes and Retail Apparel industry, to which Nike belongs, is currently ranked in the bottom 26% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Nike's stock performance [5]

U Mike Co, your thoughts on this Nike turnaround enough from the quarter to believe that it is intact. >> Uh, I think these are all positives. Um, you know, I would say this, you know, it's still the valuation is a little hard for me to get around.I would like to see something better than 1% year-on-year growth to make this one look competitive when you consider that it's trading what 30 times 2027 numbers right now. And certainly it's not a grower on the top line yet. Um, so there is room for margin expans ...

U Mike Co, your thoughts on this Nike turnaround enough from the quarter to believe that it is intact. Uh, I think these are all positives. Um, you know, I would say this, you know, it's still the valuation is a little hard for me to get around.I would like to see something better than 1% year-on-year growth to make this one look competitive when you consider that it's trading what 30 times 2027 numbers right now. And certainly it's not a grower on the top line yet. Um, so there is room for margin expansion ...

Financial Data and Key Metrics Changes - For Q1 fiscal 2026, revenues increased by 1% on a reported basis but decreased by 1% on a currency-neutral basis [21] - Gross margins declined by 320 basis points to 42.2% due to higher wholesale discounts, increased product costs, and channel mix headwinds [22] - Earnings per share were reported at $0.49 [22] - Inventory decreased by 2% compared to the prior year, indicating progress towards a healthier marketplace [23] Business Line Data and Key Metrics Changes - Nike Direct revenue declined by 5%, with Nike Digital down 12% and Nike stores down 1%, while wholesale grew by 5% [22] - In North America, revenue grew by 4%, with running, training, and basketball each delivering double-digit growth [23] - Sportswear showed growth but faced a 30% decline in classic footwear franchises [24] Market Data and Key Metrics Changes - Greater China experienced a revenue decline of 10%, with Nike Direct down 12% and Nike Digital down 27% [26] - EMEA revenue grew by 1%, with Nike Direct down 6% and Nike Digital down 13% [25] - APLA revenue grew by 1%, with Nike Direct down 6% and Nike Digital down 8% [27] Company Strategy and Development Direction - The company is focusing on a "sport offense" strategy to align its brands (Nike, Jordan, Converse) into more nimble teams by sport, enhancing consumer insights and innovation [6][9] - The strategy aims to maximize the portfolio across various sports and retail channels, leveraging distinct brand identities [7][8] - The company is committed to improving its position in Greater China and enhancing the digital marketplace while reducing reliance on classic franchises [18][32] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the cautious consumer environment and tariff uncertainties but expressed confidence in the win-now actions to drive recovery [19][30] - The company expects Q2 revenues to decline by low single digits, with gross margins down approximately 300 to 375 basis points due to new tariffs [31] - There is an emphasis on long-term growth potential, particularly in North America, while Greater China is expected to face challenges [32][34] Other Important Information - The company has activated 12 sport takeover moments in the past 10 months, connecting athlete performances to commercial assortments [14] - New partnerships, such as with Skims, are aimed at expanding product offerings and reaching new consumer segments [12][11] - The company is investing in Nike ACG to address outdoor activity opportunities, launching new high-performance products [11] Q&A Session Summary Question: Insights on the spring order book and margin recovery - Management highlighted that the spring order book is positive, reflecting growth in North America and a commitment to returning to double-digit margins over time [40][45] - The focus is on reigniting organic growth and improving the full-price mix to achieve margin recovery [46][47] Question: Update on September trading and consumer demand - Management noted that Q1 performance was not influenced by pull-forwards, and they are closely monitoring consumer signals [50][53] - The company expects significant headwinds in Q2 due to reduced promotional activity and a shift in the Dunk franchise [54] Question: Strategies for Greater China and digital business turnaround - Management emphasized the long-term opportunity in China, focusing on innovative products and local athlete activations to drive growth [69][70] - Investments have been made to clean up inventory, but profitability will depend on improved sell-through rates [72]

Financial Data and Key Metrics Changes - Revenues for the quarter were up 1% on a reported basis and down 1% on a currency-neutral basis [20] - Gross margins declined 320 basis points to 42.2% due to higher wholesale discounts, increased product costs, and channel mix headwinds [21] - Earnings per share was $0.49 [21] - Inventory decreased 2% versus the prior year, indicating progress towards a healthier marketplace [22] Business Line Data and Key Metrics Changes - Nike Direct was down 5%, with Nike Digital declining 12% and Nike stores down 1% [21] - Wholesale grew 5%, indicating a positive trend in that segment [21] - The running business grew over 20% this quarter, showcasing strong performance in that category [9] - Sportswear continued to decline, with a 30% drop in classic footwear franchises [23][15] Market Data and Key Metrics Changes - North America revenue grew 4%, with wholesale up 11% [22] - Greater China revenue declined 10%, with Nike Digital down 27% and Nike stores down 4% [25] - EMEA revenue grew 1%, with Nike Digital down 13% and Nike stores up 1% [24] - APLA revenue grew 1%, with Nike Digital down 8% and Nike stores down 5% [26] Company Strategy and Development Direction - The company is focusing on the "Sport Offense" strategy, which aims to align teams by sport for better consumer insights and innovation [6] - There is a commitment to improving the sportswear segment and addressing challenges in Greater China and Nike Direct [15][17] - The company is investing in innovative products and emotional storytelling to connect with consumers [19] - The goal is to serve consumers across multiple channels, including specialty sporting goods and Nike Direct [63] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a cautious consumer environment and tariff uncertainties impacting business recovery [19] - There is confidence in the Win Now actions and the potential for growth, particularly in North America [19] - The company expects Q2 revenues to be down low single digits, reflecting ongoing challenges [30] - Management remains focused on long-term health and profitability despite short-term pressures [34] Other Important Information - The company is facing a significant cost headwind from new tariffs, estimated at approximately $1.5 billion annually [28] - The strategic decision to reduce reliance on classic franchises and pull back on promotions is aimed at long-term brand health [18] - The company is actively working on refreshing retail environments and improving consumer experiences in Greater China [70] Q&A Session Summary Question: Can you help us think about the spring order book in the context of the holiday book? - Management noted that the spring order book is positive and reflects growth across North America, EMEA, and APLA, offsetting headwinds in Greater China [39][44] Question: How is the current marketplace in September trading? - Management indicated that the environment is dynamic, with good sell-throughs for recent product launches, but they are closely monitoring consumer behavior [49][51] Question: Can you elaborate on the early wins in North America and running? - Management highlighted a 20% growth in running and positive momentum in North America, attributing success to the Win Now actions and the Sport Offense strategy [57][59] Question: How much of the pressure in Nike Digital is due to reduced promotions? - Management confirmed that the organic traffic decline is primarily due to strategic repositioning and reduced promotional activity, with a focus on building momentum with wholesale partners [63][66] Question: What strategies are being used to turn the digital business in China? - Management emphasized leading with sport, innovative products, and local athlete activations to improve the digital marketplace, while also focusing on store refreshes [68][70]

Financial Data and Key Metrics Changes - Revenues for Q1 2026 were up 1% on a reported basis and down 1% on a currency-neutral basis [20] - Gross margins declined 320 basis points to 42.2% due to higher wholesale discounts, increased product costs, and channel mix headwinds [21] - Earnings per share was $0.49 [22] - Inventory decreased 2% versus the prior year, indicating progress towards a healthier marketplace [23] Business Line Data and Key Metrics Changes - Nike Direct was down 5%, with Nike Digital declining 12%, while wholesale grew 5% [21] - The running business grew over 20% this quarter, showcasing strong consumer response to new innovations [10] - Sportswear business continues to decline, with a 30% drop in classic footwear franchises [24][15] Market Data and Key Metrics Changes - North America revenue grew 4%, with wholesale up 11% [23] - Greater China revenue declined 10%, with Nike Digital down 27% [26] - EMEA revenue grew 1%, with Nike Digital down 13% [25] Company Strategy and Development Direction - The company is focusing on a "sport offense" strategy to align its brands (Nike, Jordan, Converse) into more nimble teams by sport [6] - There is a commitment to improving the marketplace through innovative product offerings and emotional storytelling [19] - The company aims to enhance its digital presence while reducing reliance on classic franchises [18] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a cautious consumer environment and tariff uncertainties impacting business recovery [19] - There is confidence in the win-now actions and the potential for growth in North America, despite challenges in Greater China [34] - The company expects Q2 revenues to be down low single digits, with gross margins declining due to new tariffs [32] Other Important Information - The company has activated 12 sport takeover moments in the past 10 months to connect athlete performances with commercial assortments [14] - New partnerships, such as with Skims, are aimed at expanding product offerings and reaching new consumers [12] Q&A Session Summary Question: Insights on the spring order book and holiday book context - Management noted that the spring order book is positive, reflecting growth in North America and EMEA, offsetting headwinds in Greater China [41][46] Question: Update on September trading and consumer demand - Management confirmed that Q1 performance was not influenced by pull forwards, with wholesale growth contributing to the results [51][54] Question: Early wins in North America and running growth - The company highlighted a 20% growth in running and positive signals from wholesale partners as indicators of success [58][59] Question: Traffic headwinds in Nike Digital - Management acknowledged that the decline in organic traffic is primarily due to strategic reductions in promotions and repositioning efforts [63][64] Question: Strategies for Greater China and store refresh costs - The company is focused on innovative products and local athlete activations to drive growth in China, with ongoing investments in the marketplace [66][69]

Financial Data and Key Metrics Changes - Revenues increased by 1% on a reported basis but decreased by 1% on a currency-neutral basis [20] - Gross margins declined by 320 basis points to 42.2% due to higher wholesale discounts, increased product costs, and channel mix headwinds [21] - Earnings per share was reported at $0.49 [22] - Inventory decreased by 2% compared to the prior year [23] Business Line Data and Key Metrics Changes - Nike Direct declined by 5%, with Nike Digital down 12% and Nike stores down 1% [21] - Wholesale grew by 5% [21] - Running business grew over 20% this quarter, indicating strong consumer response [10] - Sportswear business continues to decline, with a 30% drop in classic footwear franchises [24][15] Market Data and Key Metrics Changes - North America revenue grew by 4%, with wholesale up 11% [23] - Greater China revenue declined by 10%, with Nike Digital down 27% [26][27] - EMEA revenue grew by 1%, with Nike Digital down 13% [25] - APLA revenue grew by 1%, with Nike Digital down 8% [27] Company Strategy and Development Direction - The company is focusing on a "sport offense" strategy to align its brands (Nike, Jordan, Converse) into more nimble teams by sport [6] - The strategy aims to enhance consumer insights and drive innovation in storytelling [6] - The company is committed to improving its position in Greater China despite facing structural challenges [17] - Plans to refresh retail environments and improve seasonal sell-through trends are underway [27] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a cautious consumer environment and tariff uncertainties impacting business recovery [19] - The company is optimistic about the potential for growth in China, emphasizing the importance of sport and innovative products [17] - Future revenue guidance for Q2 indicates a low single-digit decline, with expectations for gross margins to decrease by 300 to 375 basis points [32] Other Important Information - The company is experiencing a significant cost headwind from new tariffs, estimated at approximately $1.5 billion annually [30] - The strategic decision to reduce reliance on classic franchises and pull back on promotions is aimed at long-term brand health [18] Q&A Session Summary Question: Insights on the spring order book and medium-term margin levels - Management highlighted that the spring order book is positive, reflecting growth in North America and a commitment to returning to double-digit margins over time [41][46] Question: Update on September trading and consumer demand - Management noted that the environment is dynamic, with good sell-throughs for new product launches, but emphasized the need to focus on inspiring through sport [51][52] Question: Traffic headwinds in Nike Digital and milestones for profitable growth - Management acknowledged that organic traffic is down due to strategic reductions in promotions, but emphasized the importance of elevating the entire marketplace [63][64] Question: Strategies for turning around the Greater China digital business - Management expressed confidence in the long-term opportunity in China, focusing on innovative products and better storytelling to drive growth [66][67]

Company Overview - Nike (NYSE:NKE) experienced gains in postmarket trading, indicating positive momentum in its recovery efforts [4]. Earnings Conference Insights - During the earnings conference call, CEO Elliott Hill highlighted early successes for the Nike, Jordan, and Converse brands, suggesting a positive trajectory for the company [4].

耐克首席财务官：第一财季公司在北美的跑步、训练和篮球业务营收均实现两位数增长。 ...

Core Insights - Nike Inc. reported positive first-quarter results, leading to a rise in share prices during after-hours trading [1][6] - The company has realigned 8,000 employees to a new initiative called Sport Offense, aimed at creating more focused teams for its brands [1] - CEO Elliott Hill emphasized the need for further progress in Nike's journey back to greatness [2] Financial Performance - For the three months ending August 31, net income decreased by 30.8% to $727 million, or 49 cents per diluted share, compared to $1.05 billion, or 70 cents, in the same quarter last year [3] - Total revenues increased by 1.1% to $11.72 billion from $11.59 billion year-over-year [3][4] - Nike Direct revenues fell by 4% to $4.5 billion, while wholesale revenues rose by 7% to $6.8 billion [5] Brand Performance - Revenues for the Nike brand increased by 2% to $11.4 billion, whereas Converse revenues dropped by 27% to $366 million [5] - The Air Force 1 franchise is stabilizing, and Converse is undergoing a global market reset with new leadership [2] Market Response - Shares of Nike closed up 0.3% at $69.73 and rose by 3.3% to $72 in after-hours trading following the earnings report [6] - The company returned approximately $714 million to shareholders through share repurchases and dividends, marking 23 consecutive years of increasing dividend payouts [8] Operational Insights - Gross margin fell by 320 basis points to 42.2%, attributed to lower average selling prices and higher tariffs in North America [7] - Inventories at the end of the quarter were $8.1 billion, down 2% from the previous year [7] Future Outlook - Analysts noted positive trends in foot traffic and product performance, with expectations of continued strength from new collaborations and product launches [10][11]