Key facts
- Nike's fourth-quarter revenue was $10.97 billion, exceeding the estimated $10.86 billion.
- The company reported earnings per share of 72 cents for the quarter.
- CEO Elliott Hill is prioritizing key sports and wholesale partnerships.
- Nike shares have fallen 35% year-to-date.
- A 52-cent benefit related to expected import tariff recovery was included in Q4 EPS.
Nike reported fourth-quarter revenue of $10.97 billion, narrowly surpassing analysts' average estimate of $10.86 billion. The results come as the sportswear giant navigates a challenging macroeconomic environment and works to execute a turnaround strategy.
CEO Elliott Hill, who took over in 2024, is aiming to refocus the company on core sports like soccer and running, while also rebuilding relationships with wholesale retailers. This marks a shift from the previous direct-to-consumer pivot under former CEO John Donahoe.
Despite these efforts, investors have shown impatience with the nearly two-year turnaround plan, as Nike grapples with excess inventory and product innovation challenges. The company's shares have declined 35% year-to-date.
Nike's efforts to clear older inventory have impacted its profit margins. The company also invested heavily in marketing ahead of the World Cup to boost sales and brand visibility, aiming to compete with rivals like Adidas.
For the fourth quarter, Nike reported earnings per share of 72 cents. This figure included a significant 52-cent benefit attributed to the anticipated recovery of import tariffs.