NIKE(US:NKE) ZACKS·2024-10-02 16:51Core Insights - NIKE Inc. reported mixed first-quarter fiscal 2025 results, with earnings per share (EPS) beating estimates but revenues missing expectations, leading to a year-over-year decline in both metrics [1][2][4] Financial Performance - EPS for the quarter was 70 cents, down 26% year over year, but exceeded the Zacks Consensus Estimate of 52 cents [1] - Revenues fell 10% year over year to $11.59 billion, missing the Zacks Consensus Estimate of $11.65 billion; on a currency-neutral basis, revenues were down 9% [2] - NIKE Direct sales decreased 13% to $4.7 billion, with a 20% drop in NIKE Brand Digital sales [3] - Wholesale revenues declined 8% year over year to $6.4 billion [3] Geographic Performance - North America revenues declined 11% to $4.8 billion, with NIKE Direct down 11% [5] - EMEA revenues fell 13% to $3.1 billion, with NIKE Direct down 12% [6] - Greater China revenues dropped 4% to $1.7 billion, with a significant 34% decrease in NIKE Digital [6] - APLA revenues decreased 7% to $1.5 billion, with NIKE Direct down 4% [6] Cost and Margin Analysis - Gross profit declined 8% to $5.3 billion, but gross margin expanded 120 basis points to 45.4% due to lower product costs and effective pricing [8] - Selling and administrative expenses fell 2% to $4 billion, but as a percentage of sales, they increased to 34.9% [8] Balance Sheet and Shareholder Returns - Cash and cash equivalents increased by nearly 37% year over year to $8.5 billion; inventories decreased by 5% to $8.3 billion [10] - The company returned $1.8 billion to shareholders, including $1.2 billion in share repurchases [10] Forward Outlook - NIKE withdrew its fiscal 2025 guidance but expects second-quarter revenues to decline 8-10% and gross margin to decrease by 150 basis points [11] - The company anticipates slight revenue improvements in the second half of fiscal 2025 due to new product introductions [12]