Core Insights - Nike reported strong earnings per share (EPS) of 0.54,significantlyexceedinganalysts′expectationsof0.30, despite a year-over-year revenue decline of 9% to 11.27billion[1][6][3]FinancialPerformance−EPSforQ32025was0.54, compared to an estimate of 0.30andaprioryearEPSof0.77, reflecting a 30% decrease [3] - Revenue reached 11.27billion,surpassingtheestimateof11.02 billion but down from 12.4billioninQ32024,markinga90.8 billion, down 32% from 1.2billioninthepreviousyear[3]−Grossmargindecreasedto41.54.7 billion, with digital sales down 15%, contradicting management's digital transformation efforts [7] Cost Management and Shareholder Returns - Operational costs were reduced by 8%, partially offsetting gross margin declines, while marketing expenditures increased by 8% [7] - The tax rate decreased from 16.5% to 5.9% due to a significant deferred tax benefit, and the company allocated about $1.1 billion for dividends and buybacks [8] Future Outlook - Management provided minimal guidance but reiterated a focus on product innovation and readiness to navigate a dynamic market landscape [10] - Positive developments in international markets, particularly Greater China and Europe, are crucial for overcoming recent revenue challenges [11]
NIKE(NKE) The Motley Fool·2025-03-20 21:03