Nike’s shares surged in after-hours trading following a strong quarterly report, with revenue reaching $11.72 billion, beating estimates. Earnings per share fell to 49 cents, surpassing the expected 70 cents. CEO Elliott Hill’s turnaround plan is gaining momentum, focusing on key categories and retail partners. The stock climbed over 4% to $72.66. Nike’s wholesale business returned to growth, with North America sales up 5% year over year. The company’s pivot back to wholesale partners like Dick’s Sporting Goods proved successful, with momentum expected to continue. Nike’s “Win Now” initiative prioritizes key categories and geographies, showing strong early results, particularly in running. Despite progress, challenges remain in returning Greater China and Converse to profitable growth, managing inventory, and tariffs. Nike’s second-quarter guidance anticipates a decline in revenues and gross margins due to incremental tariffs, but the company expects modest growth in the wholesale business for the full fiscal year. Management remains confident in navigating disruptions and leveraging strengths to mitigate cost increases. Nike’s spring order book is up versus last year, with growth led by sport, indicating a successful pivot back to wholesale. The company’s strong performance and strategic shifts under CEO Elliott Hill’s leadership provide confidence in the company’s future prospects, leading to an increased price target of $85 and plans to deepen investment in this new position.

Read more at CNBC: Nike shares jump on strong earnings, signs its turnaround is racing ahead under CEO Hill