Nike, Inc announced its fiscal 2025 first-quarter results, revealing revenues of $11.6 billion, a 10 per cent decline from the previous year, with a 9 per cent decrease on a currency-neutral basis. Nike Direct revenues fell 13 per cent to $4.7 billion, while wholesale revenues decreased by 8 per cent to $6.4 billion.

Despite the revenue drop, gross margins improved by 120 basis points to 45 per cent, driven by reduced product costs and effective pricing strategies. However, diluted earnings per share fell 26 per cent to $0.70, with net income down 28 per cent to $1.1 billion.

The results were announced during a pivotal time for the company, as it prepares for the transition to new CEO Elliott Hill, effective October 14, 2024. Nike’s Board of Directors emphasized its commitment to addressing guidance during the upcoming conference call and noted the postponement of its Investor Day.

Matthew Friend, Executive Vice President and CFO, stated that Nike's first-quarter results largely aligned with expectations. He emphasized that achieving a comeback of this magnitude requires time, but noted early successes, highlighting momentum in key sports and an increased focus on innovation and new product offerings.

As of August 31, 2024, Nike's inventories totaled $8.3 billion, down 5 per cent from the prior year, while cash and equivalents increased to $10.3 billion. The company maintained its commitment to shareholder returns, distributing approximately $1.8 billion, including $558 million in dividends and $1.2 billion in share repurchases under its $18 billion buyback program.

NIKE continues to demonstrate resilience and strategic planning as it navigates its transition and aims for future growth.