Financial Data and Key Metrics Changes - For Q4, revenues decreased by 12% on a reported basis and 11% on a currency-neutral basis [28] - Gross margins declined by 440 basis points to 40.3% due to higher wholesale discounts and supply chain cost deleverage [28] - Earnings per share was $0.14, with full-year revenue down 10% on a reported basis [29] Business Line Data and Key Metrics Changes - Nike Direct revenues were down 14%, with Nike Digital declining 26% and Nike Stores increasing by 2% [28] - In North America, Q4 revenue declined 11%, with Nike Direct down 14% and wholesale down 8% [31] - In EMEA, Q4 revenue declined 10%, with Nike Direct down 19% and wholesale down 4% [33] - Greater China saw a 20% revenue decline, with Nike Direct down 15% and wholesale down 24% [35] Market Data and Key Metrics Changes - North America made progress in cleaning up the marketplace, with a focus on repositioning Nike Digital as a full-price model [31] - EMEA demonstrated growth in key performance dimensions, with women's sportswear footwear returning to growth [34] - APLA experienced a 3% revenue decline, with mixed results across countries [38] Company Strategy and Development Direction - The company is implementing "WinNow" actions to reposition its brands and business for future growth, focusing on sport and innovation [26][27] - A new partnership with Amazon will feature a select assortment of footwear and apparel, aimed at expanding distribution [17] - The company is reorganizing into sport-focused teams to drive deeper relationships with athletes and enhance product innovation [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that Q4 results were not up to Nike's standards but expressed optimism about future improvements [7] - The company expects headwinds to revenue and gross margin to begin to moderate, with a clear path to recovery ahead [22][44] - Management emphasized the importance of inspiring and innovating for consumers, with a focus on returning to sustainable growth [25] Other Important Information - The company is facing new tariffs that are expected to increase costs by approximately $1 billion, with plans to mitigate this impact over time [42][43] - Inventory remains elevated but is being managed down, with a goal to exit the first half of fiscal 2026 in a healthy position [30][47] Q&A Session Summary Question: Can you elaborate on the accelerated actions under your sport offense realignment? - The company is organizing into sport-obsessed teams to drive a relentless flow of innovative products across all brands, focusing on performance and sportswear [61][62] Question: What is the expected impact of tariffs in Q1? - The first quarter will see a larger impact from tariffs, but the company is confident in its ability to mitigate these over time as actions are implemented [74][77] Question: Are you expecting gross margin pressures to abate sequentially? - Margins are expected to remain under pressure in the first half of fiscal 2026, but moderation is anticipated in the second half [79][80] Question: Can you discuss the timeline for recovery in the China marketplace? - The company believes in the long-term opportunity in China and is focused on inspiring consumers, although recovery will take time due to unique market characteristics [102]

Core Insights - Nike's fiscal fourth-quarter sales and profits declined year-over-year, but the results were better than analysts expected, indicating progress in the company's turnaround plan [1][2] - Revenue fell 12% year-over-year to $11.1 billion, while net income dropped to $211 million, or 14 cents per share, down from $1.5 billion, or 99 cents per share, in the previous year [1] - The results mark the third quarter under CEO Elliott Hill, who took over in October, and the company anticipates improvements moving forward as its portfolio shifts begin to take effect [2] Financial Performance - Revenue for the quarter was $11.1 billion, a 12% decrease from the previous year [1] - Net income decreased to $211 million, or 14 cents per share, compared to $1.5 billion, or 99 cents per share, in the same quarter last year [1] - Despite the decline, both revenue and net income exceeded analyst expectations [1] Market Reaction - Nike shares fell approximately 1% in extended trading following the earnings report [3] - The stock has experienced a 17% decline for the year 2025 up to Thursday's close [3]

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Financial Performance - Nike's earnings per share was 14 cents, exceeding the expected 13 cents [1] - Revenue reached $11.1 billion, surpassing expectations of $10.7 billion [1] - North America revenue was $4.7 billion, exceeding expectations [1] - China revenue was $1.4 billion, falling short of the expected $1.5 billion [2] Strategic Initiatives - Nike's CEO Elliot Hill is expected to outline his strategy for future growth during the conference call [2][3] - Nike is reportedly partnering with Amazon, potentially creating a new catalyst for growth [4] - Nike is realigning its business to focus on sports rather than gender, aiming to revitalize core areas like basketball and running [6][7] Forward Guidance - Analysts anticipate quarterly guidance during the conference call, with potential insights into holiday order books and expectations for the next fiscal year [3][4] - Nike acknowledges that current financial results are not satisfactory and anticipates improvement through "win now actions" [5]

Welcome back. It's been a rough go for Nike with the shares down nearly 25% since the new CEO, former intern Elliot Hill, took over last October. But the stock is trading slightly higher, two and a half% into its fourth quarter earnings report after the bell today.Analysts think sales will still drop about 15% yearonear. It's based on some foot traffic data from Placer AI. At store visits have been dropping for eight straight months year-over-year.The only real question here is whether the bottom could be i ...

Economic Data Summary - Initial Jobless Claims decreased by 9,000 to 236,000, marking the lowest level since mid-May [2] - Continuing Claims reached 1.974 million, the highest level since mid-November 2021, remaining above 1.9 million for five consecutive weeks [2][3] - Q1 GDP was revised down to -0.5%, the weakest quarter since Q1 2022, with consumption growth cut from +1.2% to +0.5% [4] - Durable Goods Orders surged by 16.4%, significantly exceeding the anticipated 7%, driven by a 234% increase in non-defense aircraft orders [6] - The Advanced U.S. Trade Balance for May worsened to -$96.6 billion, with exports falling by 5.2% [7] - Advanced Retail Inventories increased by 0.3% month over month and 3.2% year over year, while Wholesale Inventories decreased by 0.3% [8] Company Insights - Nike is expected to report fiscal Q4 results with an anticipated earnings decline of 88% year over year and a 15% drop in revenues, despite a history of beating earnings estimates [10]

Core Viewpoint - Nike, Inc. is expected to report a significant decline in quarterly earnings and revenue for the fourth quarter compared to the previous year [1] Financial Performance - Analysts predict Nike will report earnings of 13 cents per share, down from 99 cents per share in the same quarter last year [1] - Projected quarterly revenue is $10.72 billion, a decrease from $12.61 billion a year earlier [1] Analyst Ratings and Price Targets - Nike has beaten revenue estimates in two consecutive quarters and in six of the last ten quarters overall [2] - Evercore ISI Group analyst Michael Binetti maintains an Outperform rating but has reduced the price target from $97 to $75 [4] - Deutsche Bank analyst Krisztina Katai maintains a Buy rating with a reduced price target from $77 to $71 [4] - Barclays analyst Adrienne Yih holds an Equal-Weight rating and has cut the price target from $60 to $53 [4] - Morgan Stanley analyst Alex Straton also maintains an Equal-Weight rating, lowering the price target from $70 to $61 [4] - Wells Fargo analyst Ike Boruchow maintains an Equal-Weight rating and has raised the price target from $55 to $60 [4]

Nike is scheduled to post fiscal fourth-quarter results after the market closes on Thursday, with investors expecting a sizable move following the report. https://t.co/2EYDPJxgIk ...

Core Insights - The upcoming Q2 earnings cycle is anticipated to gain momentum with major banks reporting, but several companies, including NIKE, are already releasing results, contributing to the overall Q2 performance [1] - NIKE's stock has declined 18% in 2025, significantly underperforming the S&P 500 [1] Company Performance - Initial tariff announcements negatively impacted NIKE's profitability outlook, contributing to its poor performance [3] - Analysts have shown modest positivity regarding NIKE's upcoming earnings release, with the Zacks Consensus EPS estimate at $0.11, a slight increase since early April [4] - Revenue expectations for NIKE are set at $10.6 billion, reflecting a minor increase of 0.3% [4] - Despite some stability in revisions, NIKE is expected to see an 89% drop in EPS and a 15% decrease in sales, indicating ongoing demand challenges and profitability issues [5] - NIKE is scheduled to report quarterly results on June 26th, with weak demand trends post-pandemic being a significant concern [7] Financial Metrics - NIKE's gross margin has decreased by 330 basis points year-over-year, reflecting pressure from higher costs [10] - The stock is currently trading at a forward 12-month earnings multiple of 31.3X, above its five-year median of 30.7X and higher than the Zacks Apparel industry average [12] - The PEG ratio stands at 2.1X, consistent with the five-year median, compared to the industry average of 1.1X [12] Peer Comparison - Birkenstock (BIRK) has experienced positive EPS revisions and strong demand across its product lines, contrasting with NIKE's struggles [15] - Birkenstock has increased its revenue guidance and reported double-digit sales growth across all segments, with gross margin expanding from 56.3% to 57.7% [16] - While NIKE's outlook remains negative with a Zacks Rank of 4 (Sell), Birkenstock holds a Zacks Rank of 2 (Buy), indicating healthier demand trends and margin expansion [19]

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