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Nike shares climb on surprising Q1 sales growth
NIKENIKE(US:NKE) Youtubeยท2025-09-30 20:51

Core Insights - Nike reported a significant earnings per share (EPS) of 49 cents, surpassing analyst expectations of 27 cents, indicating a strong performance [1] - The company achieved a surprising revenue growth of 1%, with total revenues reaching $11.7 billion, exceeding the anticipated $10.9 billion [2][3] - North America showed better-than-expected growth, with a 4% increase in the home market, contributing to the overall positive results [3][4] Revenue and Growth Areas - The growth in revenue is not uniform across all markets, with Greater China experiencing a decline of 9% to 10% when accounting for currency changes [4] - CEO Elliot Hill emphasized the success of the "win now" strategy, particularly in North America, focusing on wholesale and running segments [5][6] - Wholesale growth was reported at 7%, with new partnerships established with retailers like Amazon and Aritzia [7] Challenges and Future Guidance - Despite the positive results, Nike acknowledges ongoing challenges, particularly in the direct and digital sales channels, which are currently declining [6][7] - The company is also facing difficulties with its Converse brand, which saw a 27% decline in results, prompting a leadership change [8] - Nike has shifted to providing quarterly guidance instead of long-term forecasts due to the ongoing turnaround efforts and is expected to update on the financial impact of tariffs in future communications [9]