Nike posts surprise sales growth but turnaround work is far from over

Core Insights - Nike reported unexpected sales growth in its fiscal first quarter, with revenue increasing by 1% compared to the previous year, despite earlier expectations of a mid-single digit decline [1] Financial Performance - Nike's net income for the quarter was $727 million, or 49 cents per share, representing a 31% decrease from $1.05 billion, or 70 cents per share, in the same period last year [2] - Revenue reached $11.72 billion, up approximately 1% from $11.59 billion a year earlier, exceeding Wall Street expectations of $11.0 billion [2][5] Margins and Inventory - The company's gross margin fell by 3.2 percentage points to 42.2%, indicating ongoing challenges in clearing old inventory, driven by significant discounts and increased tariffs [3]