Nike reports mixed first-quarter results and postpones investor day

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Nike offered mixed results in its first earnings release since announcing that its CEO John Donahoe would be stepping down and being replaced by Elliott Hill.

In addition to announcing its first quarter results, the sports giant announced that it would be postponing its highly anticipated investor day, which was scheduled for November 19, 2024. A new date has not yet been announced.

For the first quarter, Nike reported that revenue fell 10 percent from the same quarter last year to $11.59 billion, below the $11.65 billion expected by analysts surveyed by Yahoo Finance had been. Net income fell 28 percent to $1.1 billion and diluted earnings per share were 70 cents, a decline of 26 percent. This was above the 52 cents expected by analysts.

Matthew Friend, Nike’s chief financial officer, said in a statement that Nike’s Q1 results “broadly met expectations” and that there were already signs of future recovery.

“A comeback of this magnitude takes time, but we are seeing early victories – from momentum in key sports to accelerating our pace of novelty and innovation,” Friend said. “Our teams are energized as Elliott Hill returns to lead Nike’s next phase of growth.”

Despite a generally positive reaction to the CEO news, analysts have been broadly conservative on the stock, noting that Nike continues to face significant challenges. Some have suggested in recent weeks that Nike could further lower its fiscal 2025 guidance as the company implements a long-term turnaround plan.

Given the CEO change, Nike declined to immediately provide an update on its guidance for the year. In June, Nike lowered its fiscal 2025 forecast and said it expects revenue to decline in the mid-single digits for the year, with sales for the first half of the year expected to be in the high single digits.

By brand, Nike brand sales fell 10 percent to $11.1 billion in the first quarter, driven by declines across all regions. Sales for the Converse brand fell 15 percent to $501 million. By channel, Nike’s direct revenue fell 13 percent to $4.7 billion. Wholesale fell 8 percent to $6.4 billion.

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