Core Insights - Nike is set to report its fiscal first quarter results, with expectations of a significant decline in adjusted earnings per share and revenue due to ongoing challenges and a turnaround strategy under new leadership [1] Financial Performance - Analysts predict adjusted earnings per share to be $0.28, a 60% decrease from the previous year [1] - Revenue is anticipated to fall by 4.9% to $11.02 billion [1] - Nike Direct revenue is expected to decline by 8.3% to $4.3 billion, while wholesale revenue is forecasted to drop approximately 8% to $6.28 billion [2] - The Nike brand's sales are projected to decrease by 5% to $10.55 billion, and Converse's revenue is expected to decline by about 9% to $456.1 million [3] Strategic Initiatives - The company is focusing on cleaning up inventory, increasing product newness, and strengthening relationships with wholesale partners, although stabilization may take several quarters [4] - CFO Matthew Friend highlighted the uncertainty in the operating environment and the company's outlook reflects the best assessment based on available data [5] Margin and Cost Projections - Gross margins are projected to fall between 350 and 425 basis points, with approximately 100 basis points of negative impact attributed to tariffs [6] - Wall Street expects gross margin to improve to 41.7% for the quarter, up from 40.3% in the previous quarter [6] - The company estimates an incremental cost increase of about $1 billion and plans to reduce reliance on Chinese manufacturing from 16% to the "high-single-digit range" by the end of the fiscal year [7]

Core Insights - Nike reported fiscal first quarter results that exceeded expectations, driven by a turnaround strategy under CEO Elliott Hill and the impact of President Trump's tariffs [1][2] Financial Performance - Adjusted earnings per share were $0.49, surpassing Wall Street estimates of $0.28 [2] - Revenue increased by 1% year-over-year to $11.7 billion, exceeding the expected $11.02 billion; however, revenue fell by 1% when adjusted for currency impacts [2] - Nike Direct revenue decreased by 4% to $4.5 billion, better than the expected drop of 8.3% [3] - Wholesale revenue rose by 7% to $6.8 billion, contrary to the forecasted decline of 8% [3] - Sales for the Nike brand grew by 2% to $11.4 billion, while Converse sales fell by 27% to $366 million, significantly worse than expectations [4] Margin and Tariff Impact - Gross margins decreased by 320 basis points to 42.2%, better than the expected 41.7% but down from 40.3% in the prior quarter [5] - The company anticipates a $1.5 billion impact from tariffs, an increase from the previous estimate of $1 billion [5] - Tariffs are expected to affect gross margin by 120 basis points for fiscal year 2026, up from 75 basis points [6]

Nike (NKE) reported its fiscal first quarter results on Tuesday after market close. Its results beat expectations as the sneaker giant navigates a major turnaround strategy under CEO Elliott Hill, who took the helm last fall, and President Trump's tariffs. Nike stock rose near 4% in early trading Wednesday. The company reported adjusted earnings per share of $0.49 compared to Wall Street analyst estimates for $0.28, according to data from Bloomberg. Revenue increased 1% year over year to $11.7. billion, ...

Core Insights - Nike reported fiscal first quarter results that exceeded expectations, driven by a turnaround strategy under CEO Elliott Hill and the impact of President Trump's tariffs [1][2] Financial Performance - Adjusted earnings per share were $0.49, surpassing Wall Street estimates of $0.28 [2] - Revenue increased by 1% year-over-year to $11.7 billion, exceeding the expected $11.02 billion; however, revenue fell 1% when adjusted for currency impacts [2] - Nike Direct revenue decreased by 4% to $4.5 billion, better than the expected drop of 8.3% [3] - Wholesale revenue rose by 7% to $6.8 billion, against an expected decline of 8% [3] - Nike brand sales grew by 2% to $11.4 billion, contrary to analysts' expectations of a 5% decline [4] - Converse sales fell by 27% to $366 million, significantly worse than the expected 9% decline [4] Margin Analysis - Gross margins decreased by 320 basis points to 42.2%, better than the expected 41.7% [5] - The decrease in gross margins was attributed to lower average selling prices, higher discounts, and increased tariffs [5] - The company anticipates a $1.5 billion impact from tariffs, an increase from the previous estimate of $1 billion [5] - Tariffs on countries like Vietnam, Cambodia, and Indonesia have risen to 46%, 19%, and 19%, respectively [5] Future Outlook - Nike expects tariffs to impact gross margins by 120 basis points for fiscal year 2026, up from a previous estimate of 75 basis points [6] - The company is taking actions to address near-term margin pressures, although it will take time to see improvements [6]

This story was originally published on CFO Dive. To receive daily news and insights, subscribe to our free daily CFO Dive newsletter. Dive Brief: New York Federal Reserve Bank President John Williams said Monday that the labor market shows signs of weakening while noting that monetary policy is still restraining inflation after a quarter-point cut this month in the federal funds rate. The current 4%-to-4.25% range in the central bank’s benchmark interest rate “continues to be what we call restrictive mo ...

JUST IN: 🇨🇭🇺🇸 Switzerland proposes investing in US gold refining industry to secure lower tariffs. https://t.co/O8T5RLQOHz ...

Group 1 - President Trump announced plans to impose substantial tariffs on countries that do not manufacture furniture in the United States, aiming to revitalize the domestic furniture industry, particularly in North Carolina [1][2] - Trump also threatened a 100% tariff on movies produced outside the United States, claiming that the U.S. film industry has been adversely affected by foreign competition [2][4] - The announcement has led to a decline in Netflix's stock by 1.3% in premarket trading, reflecting investor concerns over the uncertainty surrounding the proposed tariffs [3] Group 2 - The proposed tariffs on foreign films and furniture have raised questions about their implementation and valuation for duty-collection, given the global nature of film production and the complexities involved [5][6] - Trump has already enacted a 30% tariff on upholstered furniture and a 50% import tax on kitchen cabinets and bathroom vanities, effective from the upcoming Wednesday [6]

Core Insights - Toyota reported a 2.2% increase in global sales for August, reaching nearly 845,000 units, marking the eighth consecutive month of sales growth [1] - Year-to-date sales through August totaled 6.9 million units, reflecting a 5% increase compared to the previous year [1] - The US market showed significant growth, with sales rising 13.6% year-over-year to 225,367 units in August [2] Group 1: US Market Performance - Toyota's US sales were driven by recovery from last year's production stoppages and strong hybrid vehicle performance, particularly the Camry and RAV4 [2] - Year-to-date US sales increased by 7.2%, surpassing 1.68 million units sold [2] - The RAV4 and Camry were the top contributors to sales gains in the US market [2] Group 2: China Market Performance - In China, Toyota's sales remained flat due to a challenging market environment characterized by a shift to new energy vehicles and increased price competition [3] - Promotions linked to Chinese subsidies and strong sales of the bZ3X electric vehicle contributed positively to performance in China [3] Group 3: Industry Context - Other automakers also reported sales increases, with Ford's US sales up 3.9%, Kia's up 10.4%, and Hyundai's up 12% in August [4] - The automotive sector is experiencing sales growth despite facing 25% sector tariffs and 15% tariffs on exports from Japan and South Korea [5] - Upcoming reports from major automakers like GM, Ford, and Tesla are expected to reflect strong sales trends from the past few months [5]

Group 1 - President Trump announced a plan to impose a 100% tariff on foreign-made films and substantial tariffs on countries that do not manufacture furniture in the United States [1][4] - The rationale behind these tariffs is to address the perceived loss of California's movie-making business and North Carolina's furniture industry to foreign competitors [2][3] - Trump previously made a similar threat regarding tariffs on foreign films in May, but the White House had softened its stance at that time, leaving the current situation unclear [3][4] Group 2 - The proposed tariffs are part of a broader strategy to reverse the decline in domestic industries, particularly in film and furniture manufacturing [2][3] - Trump's statements reflect a continued focus on protecting American industries from foreign competition, likening the loss of the movie business to "stealing candy from a baby" [3] - The lack of clarity on the implementation of these tariffs raises questions about the actual impact on the industries involved [1][4]

[Music] Good morning from Yahoo Finance's New York City headquarters studios. I'm Yao Finance executive editor Brian Sazi. You are watching Norwegian Cruise Line sailing into the New York Stock Exchange to ring the opening bell.Arc Best getting things underway over at the NASDAQ. Now, the rosecolored glasses remain on for investors to start the week, but maybe they shouldn't be when taking a look at the potential minefields out there over the next 5 days of trading. Government shutdown could happen on Octob ...