Financial Data and Key Metrics Changes - Revenues for Q1 2026 were up 1% on a reported basis and down 1% on a currency-neutral basis [20] - Gross margins declined 320 basis points to 42.2% due to higher wholesale discounts, increased product costs, and channel mix headwinds [21] - Earnings per share was $0.49 [22] - Inventory decreased 2% versus the prior year, indicating progress towards a healthier marketplace [23] Business Line Data and Key Metrics Changes - Nike Direct was down 5%, with Nike Digital declining 12%, while wholesale grew 5% [21] - The running business grew over 20% this quarter, showcasing strong consumer response to new innovations [10] - Sportswear business continues to decline, with a 30% drop in classic footwear franchises [24][15] Market Data and Key Metrics Changes - North America revenue grew 4%, with wholesale up 11% [23] - Greater China revenue declined 10%, with Nike Digital down 27% [26] - EMEA revenue grew 1%, with Nike Digital down 13% [25] Company Strategy and Development Direction - The company is focusing on a "sport offense" strategy to align its brands (Nike, Jordan, Converse) into more nimble teams by sport [6] - There is a commitment to improving the marketplace through innovative product offerings and emotional storytelling [19] - The company aims to enhance its digital presence while reducing reliance on classic franchises [18] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a cautious consumer environment and tariff uncertainties impacting business recovery [19] - There is confidence in the win-now actions and the potential for growth in North America, despite challenges in Greater China [34] - The company expects Q2 revenues to be down low single digits, with gross margins declining due to new tariffs [32] Other Important Information - The company has activated 12 sport takeover moments in the past 10 months to connect athlete performances with commercial assortments [14] - New partnerships, such as with Skims, are aimed at expanding product offerings and reaching new consumers [12] Q&A Session Summary Question: Insights on the spring order book and holiday book context - Management noted that the spring order book is positive, reflecting growth in North America and EMEA, offsetting headwinds in Greater China [41][46] Question: Update on September trading and consumer demand - Management confirmed that Q1 performance was not influenced by pull forwards, with wholesale growth contributing to the results [51][54] Question: Early wins in North America and running growth - The company highlighted a 20% growth in running and positive signals from wholesale partners as indicators of success [58][59] Question: Traffic headwinds in Nike Digital - Management acknowledged that the decline in organic traffic is primarily due to strategic reductions in promotions and repositioning efforts [63][64] Question: Strategies for Greater China and store refresh costs - The company is focused on innovative products and local athlete activations to drive growth in China, with ongoing investments in the marketplace [66][69]

Financial Data and Key Metrics Changes - Revenues increased by 1% on a reported basis but decreased by 1% on a currency-neutral basis [20] - Gross margins declined by 320 basis points to 42.2% due to higher wholesale discounts, increased product costs, and channel mix headwinds [21] - Earnings per share was reported at $0.49 [22] - Inventory decreased by 2% compared to the prior year [23] Business Line Data and Key Metrics Changes - Nike Direct declined by 5%, with Nike Digital down 12% and Nike stores down 1% [21] - Wholesale grew by 5% [21] - Running business grew over 20% this quarter, indicating strong consumer response [10] - Sportswear business continues to decline, with a 30% drop in classic footwear franchises [24][15] Market Data and Key Metrics Changes - North America revenue grew by 4%, with wholesale up 11% [23] - Greater China revenue declined by 10%, with Nike Digital down 27% [26][27] - EMEA revenue grew by 1%, with Nike Digital down 13% [25] - APLA revenue grew by 1%, with Nike Digital down 8% [27] Company Strategy and Development Direction - The company is focusing on a "sport offense" strategy to align its brands (Nike, Jordan, Converse) into more nimble teams by sport [6] - The strategy aims to enhance consumer insights and drive innovation in storytelling [6] - The company is committed to improving its position in Greater China despite facing structural challenges [17] - Plans to refresh retail environments and improve seasonal sell-through trends are underway [27] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a cautious consumer environment and tariff uncertainties impacting business recovery [19] - The company is optimistic about the potential for growth in China, emphasizing the importance of sport and innovative products [17] - Future revenue guidance for Q2 indicates a low single-digit decline, with expectations for gross margins to decrease by 300 to 375 basis points [32] Other Important Information - The company is experiencing a significant cost headwind from new tariffs, estimated at approximately $1.5 billion annually [30] - The strategic decision to reduce reliance on classic franchises and pull back on promotions is aimed at long-term brand health [18] Q&A Session Summary Question: Insights on the spring order book and medium-term margin levels - Management highlighted that the spring order book is positive, reflecting growth in North America and a commitment to returning to double-digit margins over time [41][46] Question: Update on September trading and consumer demand - Management noted that the environment is dynamic, with good sell-throughs for new product launches, but emphasized the need to focus on inspiring through sport [51][52] Question: Traffic headwinds in Nike Digital and milestones for profitable growth - Management acknowledged that organic traffic is down due to strategic reductions in promotions, but emphasized the importance of elevating the entire marketplace [63][64] Question: Strategies for turning around the Greater China digital business - Management expressed confidence in the long-term opportunity in China, focusing on innovative products and better storytelling to drive growth [66][67]

Company Overview - Nike (NYSE:NKE) experienced gains in postmarket trading, indicating positive momentum in its recovery efforts [4]. Earnings Conference Insights - During the earnings conference call, CEO Elliott Hill highlighted early successes for the Nike, Jordan, and Converse brands, suggesting a positive trajectory for the company [4].

Market Performance - U.S. equity markets ended positively on September 30, 2025, with all major indexes recovering from earlier losses, marking a strong finish to the month and quarter [1][2] - The Dow Jones Industrial Average reached a new record high of 46,397.89 points, with a monthly gain of 1.9% and a quarterly gain of 5.2%, achieving five consecutive months of gains [3] - The S&P 500 rose 0.4% to close at 6,688.46 points, with a 3.5% gain for September and a 7.8% increase for the third quarter, marking its fifth consecutive winning month [2] - The Nasdaq Composite increased by 0.3% to close at 22,660.01 points, with a strong September performance of 5.6% and an 11.2% surge for the third quarter, extending its winning streak to six months [2] Corporate Developments - Pfizer's shares surged 6.8% after a deal was announced for lower medication prices for Medicaid patients, along with a three-year exemption from certain tariffs [4] - Merck also saw a 6.8% increase following a positive recommendation for its RSV prevention product and a new collaboration with Variational AI [4] - CoreWeave's stock jumped 13.9% after Meta Platforms placed a new order for cloud computing services valued at up to $14.2 billion [6] - Lamb Weston reported stronger-than-expected profits, leading to a 5.6% increase in its stock price [6] Sector Movements - Shares of Paycom and Block declined following a partnership announcement between OpenAI and Stripe, which is expected to create competitive pressures in the payment sector [5] - ExxonMobil announced plans to lay off 2,000 workers as part of a restructuring effort [7] Economic Indicators - The Consumer Confidence Index fell to 94.5 in September, its lowest since April, indicating concerns about the job market [9] - The Federal Reserve cut the federal funds rate by 25 basis points to a range of 4.00%-4.25%, with projections for further cuts by the end of 2025 [10] Upcoming Events - Key economic data releases are scheduled for October, including the ADP Employment Report and the Consumer Price Index [13][11]

Joining us now is Brian Nagel from Oppenheimer. Brian, you pay more attention here to uh to the revenue or to other things. >> Well, good afternoon.No, look, this was a clear beat by by Nike and I think, you know, just like you're saying, John, I think, you know, the revenue is important here because that's really been the missing piece. I mean, sales have been weak of Nike for a while and what we learned here just a few minutes ago in the recent quarter, you know, sales were I mean, still not up to Nike st ...

Hold on. We're We've got Nike earnings. Let's get to Sarah Eisen with those.Sarah, >> hi. We've got a double beat here, John, for Nike. First, earnings per share, a big beat, uh, 49 cents.The estimate from analysts was 27 cents. Perhaps more importantly, Nike has returned to revenue growth. And this is a big surprise.They actually saw revenue growth of 1%. Revenues were 11.7% billion, and that was a lot better than the expectation of $10.9% billion. Remember the company guided for mids singledigit revenue d ...

Core Insights - Nike Inc. shares increased in after-hours trading following the release of fiscal first-quarter results that exceeded Wall Street expectations, driven by an unexpected sales increase [1] Financial Performance - The fiscal first-quarter results reported by Nike Inc. surpassed analysts' estimates, indicating strong performance in the sneaker market [1]

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]

Nike’s latest quarterly sales surpassed Wall Street’s expectations on strength in North America and its running business https://t.co/AJzWLmaGvy ...

Nike on Tuesday reported a surprise rise in first-quarter revenue and beat expectations for quarterly profit as the sportswear giant rebuilds its presence at wholesalers and CEO Elliott Hill's turnaro... ...