From Financial Modeling Prep: 2024-10-02 14:40:00

Nike (NYSE:NKE) reported mixed fiscal first-quarter results, missing revenue expectations and delaying its investor day due to a leadership change. The company withdrew annual revenue guidance, with a new CEO set to take over in mid-October. Shares fell over 7% following the report.

Earnings per share were $0.70, beating the expected $0.52, on revenue of $11.59 billion, slightly below the $11.65 billion forecasted. The beat on earnings was driven by a 120 basis point increase in gross margin, reaching 45.4%.

Nike postponed its investor day to address guidance strategy during the post-earnings conference call, citing the ongoing CEO transition. Earlier projections indicated an annual revenue decline in the mid-single digits.

Analysts from Bernstein highlighted Nike’s turnaround phase, noting the absence of guidance and catalysts from an investor day. Despite positive market recovery signs, markdowns continue to pressure sales and margins. They cautioned on the stock’s stagnancy without clear guidance.

Stifel analysts agreed on Nike’s turnaround timeline, but recent market movements suggest otherwise. With a new CEO incoming, a return to growth justifying the high P/E ratio might not happen until the first half of 2026. Due to revenue visibility concerns, Stifel maintained a cautious Hold recommendation.



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