Pedestrians walk past a Nike store featuring a modern design and mannequins displaying winter apparel on December 5, 2024, in Wuhan, Hubei Province, China.Nike on Tuesday posted surprise sales growth in its fiscal first quarter, but the sneaker giant still has work ahead to execute its turnaround. The company said revenue rose 1% in the three months ended August 31, after previously saying it anticipated sales would fall by a mid-single digit percentage in the period.Here's how Nike performed during the qua ...

Nike’s latest quarterly sales surpassed Wall Street’s expectations on strength in North America and its running business https://t.co/AJzWLmaGvy ...

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Nike on Tuesday reported a surprise rise in first-quarter revenue and beat expectations for quarterly profit as the sportswear giant rebuilds its presence at wholesalers and CEO Elliott Hill's turnaro... ...

[1. Fiscal 2026 First Quarter Results Overview](index=1&type=section&id=1.%20Fiscal%202026%20First%20Quarter%20Results%20Overview) [1.1 Executive Summary of Financial Performance](index=1&type=section&id=1.1%20Executive%20Summary%20of%20Financial%20Performance) NIKE, Inc. reported fiscal 2026 first quarter revenues of **$11.7 billion**, a **1%** increase reported, with gross margin down **320 bps** and diluted EPS decreasing **30%** to **$0.49** Fiscal 2026 First Quarter Key Financial Highlights | Metric | Value (millions) | Reported % Change YoY | Currency-Neutral % Change YoY | | :--- | :--- | :--- | :--- | | Total Revenues | $11,700 | 1 % | -1 % | | NIKE Direct Revenues | $4,500 | -4 % | -5 % | | Wholesale Revenues | $6,800 | 7 % | 5 % | | Gross Margin | 42.2 % | -320 bps | | | Diluted EPS | $0.49 | -30 % | | [1.2 Management Commentary](index=1&type=section&id=1.2%20Management%20Commentary) Management noted progress in North America and Wholesale, expressing confidence in the 'Sport Offense' strategy despite non-linear recovery and external headwinds - NIKE drove progress through Win Now actions in priority areas of North America, Wholesale, and Running[3](index=3&type=chunk) - Confidence in the new alignment in the Sport Offense as key to maximizing NIKE, Inc.'s complete portfolio over the long-term[3](index=3&type=chunk) - Progress will not be linear as dimensions of the business recover on different timelines, navigating several external headwinds[3](index=3&type=chunk) [2. Consolidated Financial Statements](index=3&type=section&id=2.%20Consolidated%20Financial%20Statements) [2.1 Consolidated Statements of Income](index=3&type=section&id=2.1%20Consolidated%20Statements%20of%20Income) Revenues increased **1%** to **$11.72 billion**, but gross profit decreased **6%** due to a **320 bps** margin decline, leading to a **31%** net income drop to **$727 million** Consolidated Statements of Income (Three Months Ended August 31) | Metric (in millions, except per share data) | 8/31/2025 | 8/31/2024 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $11,720 | $11,589 | 1 % | | Cost of sales | $6,777 | $6,332 | 7 % | | Gross profit | $4,943 | $5,257 | -6 % | | Gross margin | 42.2 % | 45.4 % | | | Total selling and administrative expense | $4,016 | $4,048 | -1 % | | Income before income taxes | $922 | $1,307 | -29 % | | Income tax expense | $195 | $256 | -24 % | | Effective tax rate | 21.1 % | 19.6 % | | | NET INCOME | $727 | $1,051 | -31 % | | Diluted EPS | $0.49 | $0.70 | -30 % | [2.1.1 Revenue Breakdown](index=3&type=section&id=2.1.1%20Revenue%20Breakdown) This section details revenue and cost of sales performance, showing a slight revenue increase but a notable rise in cost of sales Revenue and Cost of Sales Performance | Metric (in millions) | 8/31/2025 | 8/31/2024 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $11,720 | $11,589 | 1 % | | Cost of sales | $6,777 | $6,332 | 7 % | | Gross profit | $4,943 | $5,257 | -6 % | [2.1.2 Gross Margin and Profitability](index=3&type=section&id=2.1.2%20Gross%20Margin%20and%20Profitability) Gross margin significantly declined by **320 basis points** to **42.2%**, primarily due to lower average selling prices and higher tariffs Gross Margin Performance | Metric | 8/31/2025 | 8/31/2024 | Change | | :--- | :--- | :--- | :--- | | Gross margin | 42.2 % | 45.4 % | -320 bps | - Gross margin decreased primarily due to lower average selling price, reflecting higher discounts and channel mix, as well as higher tariffs in North America[6](index=6&type=chunk) [2.1.3 Operating Expenses](index=3&type=section&id=2.1.3%20Operating%20Expenses) Total selling and administrative expense saw a slight decrease, driven by lower demand creation expense offset by flat operating overhead Selling and Administrative Expense (Three Months Ended August 31) | Expense Category (in millions) | 8/31/2025 | 8/31/2024 | % Change | | :--- | :--- | :--- | :--- | | Demand creation expense | $1,188 | $1,226 | -3 % | | Operating overhead expense | $2,828 | $2,822 | 0 % | | Total selling and administrative expense | $4,016 | $4,048 | -1 % | | % of revenues | 34.3 % | 34.9 % | | - Demand creation expense decreased primarily due to lower brand marketing expense reflecting higher investment in key sports events in the prior year, partially offset by higher sports marketing expense in the current year[6](index=6&type=chunk) - Operating overhead expense was flat, primarily due to higher wage-related expense, offset by lower other administrative costs[6](index=6&type=chunk) [2.1.4 Net Income and Earnings Per Share](index=3&type=section&id=2.1.4%20Net%20Income%20and%20Earnings%20Per%20Share) Net income decreased significantly by **31%** to **$727 million**, with diluted EPS falling **30%** to **$0.49**, impacted by a higher effective tax rate Net Income and EPS (Three Months Ended August 31) | Metric | 8/31/2025 | 8/31/2024 | % Change | | :--- | :--- | :--- | :--- | | NET INCOME | $727 million | $1,051 million | -31 % | | Basic EPS | $0.49 | $0.70 | -30 % | | Diluted EPS | $0.49 | $0.70 | -30 % | Effective Tax Rate | Metric | 8/31/2025 | 8/31/2024 | | :--- | :--- | :--- | | Effective tax rate | 21.1 % | 19.6 % | - The effective tax rate increased to **21.1%** from 19.6% primarily due to decreased benefits from stock-based compensation[6](index=6&type=chunk) [2.2 Consolidated Balance Sheets](index=4&type=section&id=2.2%20Consolidated%20Balance%20Sheets) Total assets decreased **1%** to **$37.33 billion**, driven by lower cash and investments, while current liabilities rose **3%** and shareholders' equity fell **3%** Consolidated Balance Sheet Summary (August 31) | Metric (in millions) | 8/31/2025 | 8/31/2024 | % Change | | :--- | :--- | :--- | :--- | | TOTAL ASSETS | $37,334 | $37,867 | -1 % | | Total current liabilities | $10,911 | $10,628 | 3 % | | Shareholders' equity | $13,468 | $13,944 | -3 % | [2.2.1 Assets](index=4&type=section&id=2.2.1%20Assets) Total current assets decreased by **5%**, primarily due to significant reductions in cash and equivalents and short-term investments Current Assets (August 31) | Asset Category (in millions) | 8/31/2025 | 8/31/2024 | % Change | | :--- | :--- | :--- | :--- | | Cash and equivalents | $7,024 | $8,485 | -17 % | | Short-term investments | $1,551 | $1,809 | -14 % | | Accounts receivable, net | $4,962 | $4,764 | 4 % | | Inventories | $8,114 | $8,253 | -2 % | | Prepaid expenses and other current assets | $2,247 | $1,729 | 30 % | | Total current assets | $23,898 | $25,040 | -5 % | - Inventories were down **2%** compared to the prior year, reflecting a decrease in units, partially offset by increased product costs, primarily due to higher tariffs in North America[12](index=12&type=chunk) - Cash and equivalents and short-term investments were down approximately **$1.7 billion** from last year, as cash generated by operations was more than offset by cash dividends, share repurchases, bond repayment and capital expenditures[12](index=12&type=chunk) [2.2.2 Liabilities and Shareholders' Equity](index=4&type=section&id=2.2.2%20Liabilities%20and%20Shareholders'%20Equity) Total current liabilities increased by **3%**, driven by higher accounts payable and accrued liabilities, while shareholders' equity decreased by **3%** Current Liabilities and Shareholders' Equity (August 31) | Category (in millions) | 8/31/2025 | 8/31/2024 | % Change | | :--- | :--- | :--- | :--- | | Current portion of long-term debt | $0 | $1,000 | -100 % | | Accounts payable | $3,772 | $3,357 | 12 % | | Accrued liabilities | $5,923 | $5,075 | 17 % | | Total current liabilities | $10,911 | $10,628 | 3 % | | Shareholders' equity | $13,468 | $13,944 | -3 % | [3. Divisional and Brand Performance](index=5&type=section&id=3.%20Divisional%20and%20Brand%20Performance) [3.1 NIKE Brand Divisional Revenues](index=5&type=section&id=3.1%20NIKE%20Brand%20Divisional%20Revenues) NIKE Brand revenues grew **2%** reported to **$11.4 billion**, flat currency-neutral, with North America growing and Greater China declining significantly NIKE Brand Divisional Revenues (Reported % Change, Three Months Ended August 31) | Region | Footwear | Apparel | Equipment | Total | | :--- | :--- | :--- | :--- | :--- | | North America | 0 % | 11 % | 16 % | 4 % | | Europe, Middle East & Africa | 4 % | 11 % | 3 % | 6 % | | Greater China | -11 % | 1 % | -32 % | -9 % | | Asia Pacific & Latin America | 1 % | 7 % | -6 % | 2 % | | TOTAL NIKE BRAND | -1 % | 9 % | 4 % | 2 % | NIKE Brand Divisional Revenues (Currency-Neutral % Change, Three Months Ended August 31) | Region | Footwear | Apparel | Equipment | Total | | :--- | :--- | :--- | :--- | :--- | | North America | 0 % | 11 % | 16 % | 4 % | | Europe, Middle East & Africa | -2 % | 6 % | -2 % | 1 % | | Greater China | -12 % | 0 % | -33 % | -10 % | | Asia Pacific & Latin America | 0 % | 5 % | -7 % | 1 % | | TOTAL NIKE BRAND | -2 % | 7 % | 3 % | 0 % | - Currency-neutral growth in North America was offset by a decline in Greater China for the NIKE Brand[6](index=6&type=chunk) [3.2 Converse Brand Revenues](index=5&type=section&id=3.2%20Converse%20Brand%20Revenues) Converse revenues significantly declined by **27%** reported and **28%** currency-neutral, driven by declines across all territories Converse Revenues (Three Months Ended August 31) | Metric (in millions) | 8/31/2025 | 8/31/2024 | Reported % Change | Currency-Neutral % Change | | :--- | :--- | :--- | :--- | :--- | | Converse Revenues | $366 | $501 | -27 % | -28 % | - Converse revenues declined due to declines across all territories[6](index=6&type=chunk) [3.3 Earnings Before Interest and Taxes (EBIT) by Segment](index=6&type=section&id=3.3%20Earnings%20Before%20Interest%20and%20Taxes%20(EBIT)%20by%20Segment) Total NIKE, Inc. EBIT decreased **28%** to **$904 million**, with EBIT margin at **7.7%**, as all segments, especially Converse and Greater China, saw declines EBIT by Segment (Three Months Ended August 31) | Segment (in millions) | 8/31/2025 | 8/31/2024 | % Change | | :--- | :--- | :--- | :--- | | North America | $1,134 | $1,216 | -7 % | | Europe, Middle East & Africa | $735 | $792 | -7 % | | Greater China | $377 | $502 | -25 % | | Asia Pacific & Latin America | $350 | $402 | -13 % | | TOTAL NIKE BRAND | $1,404 | $1,685 | -17 % | | Converse | $39 | $121 | -68 % | | TOTAL NIKE, INC. EBIT | $904 | $1,264 | -28 % | | EBIT margin | 7.7 % | 10.9 % | | [4. Shareholder Returns](index=2&type=section&id=4.%20Shareholder%20Returns) [4.1 Shareholder Returns Overview](index=2&type=section&id=4.1%20Shareholder%20Returns%20Overview) NIKE, Inc. returned approximately **$714 million** to shareholders in Q1 through dividends and share repurchases, maintaining **23 years** of dividend increases - The Company returned approximately **$714 million** to shareholders in the first quarter[8](index=8&type=chunk) Shareholder Returns Q1 Fiscal 2026 | Metric | Amount (millions) | % Change YoY | | :--- | :--- | :--- | | Dividends | $591 | 6 % | | Share repurchases | $123 | | - NIKE has a strong track record of returns to shareholders, including **23 consecutive years** of increasing dividend payouts[8](index=8&type=chunk) - **1.8 million shares** were retired as part of the Company's four-year, **$18 billion** share repurchase program approved in June 2022[12](index=12&type=chunk) [5. Company Information and Disclosures](index=2&type=section&id=5.%20Company%20Information%20and%20Disclosures) [5.1 About NIKE, Inc.](index=2&type=section&id=5.1%20About%20NIKE,%20Inc.) NIKE, Inc. is a global leader in athletic footwear, apparel, and equipment, with Converse as its athletic lifestyle subsidiary - NIKE, Inc. is the world's leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities[10](index=10&type=chunk) - Converse, a wholly-owned NIKE, Inc. subsidiary brand, designs, markets and distributes athletic lifestyle footwear, apparel and accessories[10](index=10&type=chunk) [5.2 Forward-Looking Statements](index=2&type=section&id=5.2%20Forward-Looking%20Statements) This section discloses forward-looking statements, which are subject to risks and uncertainties detailed in SEC filings, potentially causing actual results to differ - This press release contains forward-looking statements, which involve risks and uncertainties that could cause actual results to differ materially[11](index=11&type=chunk) - These risks and uncertainties are detailed from time to time in reports filed by NIKE with the U.S. Securities and Exchange Commission (SEC), including Forms 8-K, 10-Q and 10-K[11](index=11&type=chunk) [5.3 Conference Call Information](index=2&type=section&id=5.3%20Conference%20Call%20Information) NIKE, Inc. management hosted a conference call on September 30, 2025, to discuss Q1 results, with a live broadcast and archived version available online - NIKE, Inc. management hosted a conference call on September 30, 2025, at approximately 2:00 p.m. PT to review fiscal first quarter results[9](index=9&type=chunk) - The conference call was broadcast live via the Internet and an archived version is available at https://investors.nike.com through approximately October 21, 2025[9](index=9&type=chunk)

Nike earnings out after the bell today. Stock is well off the lows of the year back in April when President Trump first announced those Liberation Day tariffs, but they're still down 15% since CEO Elliot Hill took over nearly one year ago. Now, our next guest sees 60% upside from the stock.He's very bullish. Jeffrey's analyst Randy Ko Kik joins us now. He's got a buy rating, $115 price target.What makes you such a believer right now. Look, I think at the end of the day, you wanted to talk about the category ...

Core Viewpoint - Nike's stock has seen a decline of 15% since CEO Elliot Hill took over, but analysts see a potential upside of 60% with a price target of $115 [1] Company Performance - Nike's athletic footwear category is expected to grow at a rate of 5% annually due to global casualization trends [2] - The company has lost market share in recent years but is expected to regain it under new leadership, which will help spark sales growth [3] - Upcoming quarters are anticipated to show a significant improvement in comparisons, with operating income declines projected at 50% and 90% for the fiscal third and fourth quarters, respectively [4][5] Management Strategy - The new management is focused on reasserting Nike's presence in product innovation and distribution, which had been neglected under the previous CEO [6] - The current earnings report is viewed as a progress report rather than a definitive turnaround, with expectations of a revenue decline of about 5% this quarter compared to a 12% decline last quarter [7] - Future quarters are expected to approach flat revenue growth, with a notable inflection anticipated as comparisons become easier later in the fiscal year [8]

Core Viewpoint - NIKE (NKE) shares have underperformed in recent years due to muted growth and an inability to capture consumer preferences post-COVID, leading to weak sales and sentiment [1][2][12] Financial Performance - Recent quarterly sales amounted to $11.1 billion, reflecting a 12% year-over-year decline, with gross margin contracting to 40.3% from 44.7% in the same period last year [6][10] - Revenue revisions show a slight improvement, with the expected revenue of $11.0 billion revised 0.5% higher, although a 5% year-over-year decline is still anticipated [9][10] - The current Zacks Consensus EPS estimate stands at $0.60, indicating a 60% year-over-year decline [8] Market Sentiment - The stock has struggled due to ongoing headwinds, but positive commentary from the CEO suggests that conditions may improve, leading to a post-earnings rise despite soft results [6][8] - The stock trades at a forward 12-month earnings multiple of 35.1X, which is above the five-year median of 30.8X and reflects a 50% premium compared to the S&P 500 [11] Investment Outlook - The company is currently rated as a Zacks Rank 4 (Sell), indicating caution for potential investors until more positive guidance is provided [12]

Core Viewpoint - Nike is currently undergoing a turnaround under CEO Elliot Hill, with expectations of a challenging earnings report, including a projected sales decline of 5-6% and earnings of 28 cents per share [3][4]. Financial Performance - Analysts expect Nike to report earnings of 28 cents per share for the trailing quarter on revenue of $11.2 billion [1]. - The company experienced a 15% rally in shares three months ago following its fourth-quarter earnings report [1]. Market Position and Competition - Nike's shares are down 0.8% ahead of the earnings report, with competitors like Lululemon and Deca's Outdoor also experiencing declines [2]. - Nike is facing increased competition from local Chinese brands such as Anta and Li Ning, which have improved their product offerings and distribution [12][13]. Product Development and Strategy - Nike has launched several new product lines, including running shoes and a partnership with Skims in the athleisure market, aimed at regaining market share [6][7][8]. - The company is expected to leverage major marketing events like the 2026 Olympics and World Cup to boost its brand presence [9]. Challenges in China - Nike has struggled in the Chinese market due to high youth unemployment and competition from local brands, although it remains the market leader [10][12]. - Per capita spending on sportswear in China is significantly lower than in the US, indicating potential growth as more consumers enter the middle class [14]. Investment Outlook - Analysts view Nike as undervalued, with a fair value estimate of $14 per share [14].

Core Thesis - NIKE, Inc. is facing significant challenges in FY2025, including a 10% decline in annual revenue to $46.3 billion and a 44% drop in net income to $3.2 billion, marking its first revenue decline in years [2][3] Financial Performance - The footwear segment, NIKE's largest, experienced a 12% revenue drop due to excess inventory and product fatigue, while apparel and equipment segments showed more resilience, with apparel down 6% and equipment up 6% [2][3] - The company's trailing and forward P/E ratios are 32.97 and 41.67 respectively, with shares trading at $71.22 as of September 24th [1] Competitive Landscape - Competitors such as Adidas and Lululemon have gained market share, with niche brands like Hoka and On attracting consumer interest through innovation and community engagement [3] - Regional performance varied, with North America facing oversupply issues, Greater China declining 13% due to weaker demand, and EMEA revenue down 10% amid inflation and competition [4] Strategic Response - NIKE has initiated a "Win Now" turnaround strategy under new CEO Elliott Hill, focusing on leadership realignment, cost reductions, inventory normalization, and prioritizing core sports categories [5] - The company is recalibrating its channel mix to balance direct-to-consumer and wholesale approaches while addressing supply chain and tariff risks [5] Future Outlook - Early indicators suggest stabilization, including improved sell-through in North America and a cleaner inventory base, with a strong balance sheet and renewed strategic focus setting the stage for potential recovery in FY2025 [6] - The execution of the turnaround strategy will be crucial for NIKE to reclaim its leadership position in the competitive athletic apparel and footwear market [6]