From Financial Modeling Prep: 2025-03-21 08:04:00

Nike (NYSE:NKE) shares fell over 6% in pre-market trading due to a disappointing fourth-quarter revenue forecast, despite beating Q3 earnings estimates of $0.54 EPS and $11.27 billion in revenue. New footwear launches drove the upside, but CFO Matthew Friend’s warning of a mid-teens sales decline in Q4 led to concerns about excess inventory and discounting.

The company’s strong Q3 performance under new CEO Elliott Hill was overshadowed by the projected decline in Q4 sales, which could be exacerbated by discounting efforts to clear inventory. North American sales fell 21% to $1.1 billion, and Greater China revenue dropped 42% to $421 million, reflecting ongoing demand challenges.

Nike’s profitability in Q3 was a bright spot, but the company faces significant headwinds in key markets, with overall revenue down 9% and margin pressures impacting its near-term outlook. Despite efforts to revitalize the brand, navigating the challenging retail environment remains a top priority for the company.



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