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Nike Sales Dip Amid Revenue Beat, Future Outlook Uncertain
2 Jul
Summary
- Nike reported Q4 revenue of $11 billion, a 1% decrease year-over-year.
- Adjusted earnings were $0.72 per share, including a tariff recovery benefit.
- The company anticipates further sales decline in the upcoming quarter.
Nike announced its fiscal fourth-quarter results, revealing revenue of $11 billion, marking a 1% decrease compared to the previous year. The company's adjusted earnings stood at $0.72 per share. These results included a significant $0.52 per share benefit derived from anticipated recoveries related to tariffs under the International Emergency Economic Powers Act, which complicates direct year-over-year comparisons.
Despite these results, Nike projected a challenging fiscal first quarter. The company anticipates revenue to decline in the low- to mid-single-digit percentage range. This forecast takes into account anticipated incremental tariffs, which are expected to rise from 10% to 15% in the coming months as Nike navigates ongoing demand challenges.
Revenue from Greater China exceeded analyst estimates, although sales in this key region still experienced a 12% decline from the prior year. Nike's outlook suggests a slightly positive gross margin for the upcoming quarter, as the company continues its efforts to enhance performance amid prevailing market conditions.
