Nike reported strong fiscal first quarter results, beating expectations with adjusted earnings per share of $0.49 and revenue of $11.7 billion. Stock rose 5% in trading. Direct-to-consumer revenue fell 4% while wholesale revenue rose 7%. Gross margins decreased to 42.2% due to higher tariffs. Nike expects tariffs to impact gross margin by 120 basis points. The company plans to mitigate costs by reducing reliance on China and implementing price increases. Nike anticipates second quarter revenue to decline and gross margins to be lower due to tariffs. The company continues to focus on innovation in “sport offense” with a strong emphasis on running. Nike plans to introduce new running footwear styles and apply findings to other platforms. China business struggles with foot traffic decline and high digital marketplace promotions.

Read more at Yahoo Finance.: Nike stock rises 5% as earnings, sales top forecasts, company continues progress with turnaround