NIKE(US:NKE) Sou Hu Cai Jing·2025-10-09 13:13Core Insights - Nike reported Q1 financial results for FY2026, showing a 1% year-over-year revenue increase to $11.7 billion, surpassing market expectations of $11 billion [2] - Gross margin decreased by 320 basis points to 42.2%, exceeding the market forecast of 41.7% [2] - Net profit fell 31% year-over-year to $700 million, but was double the average analyst estimate from Visible Alpha [2] Revenue Breakdown - Nike brand revenue grew 2% to $11.4 billion, while Converse brand revenue declined 27% to $366 million [4] - Direct-to-consumer revenue decreased 4% to $4.5 billion, while wholesale revenue increased 7% to $6.8 billion [4] - North America revenue rose 4% to $5.02 billion, showing improvement from an 11% decline in the previous fiscal year [4] - EMEA market revenue grew 6% to $3.33 billion, while Greater China revenue fell 10% to $1.5 billion [4] Strategic Focus - The current strategic emphasis is on the "Win Now" plan, which aims to strengthen core areas such as North America, wholesale, and running [6] - Elliott Hill, the new CEO, has been focusing on returning to a sports-centric approach, enhancing product functionality through technology, particularly in running and basketball [6][8] - The company is addressing structural challenges in the market while optimizing inventory in Greater China, which has seen an 11% year-over-year decline [4][6] Management Changes - Elliott Hill took over as CEO on October 14, 2023, and has implemented the "Win Now" plan over three quarters [6] - The company has seen a 20% increase in global running business, with high single-digit growth in the Chinese market, marking it as a performance highlight [8] - The previous management's focus on lifestyle products is being reversed to restore the brand's core positioning in sports [8]