Nike Shares Fall to Lowest Price in 12 Years as CEO Warns of Turnaround Obstacles
Nike warned on Tuesday that Chief Executive Officer Elliott Hill's turnaround strategy continues to face significant obstacles, sending the footwear and apparel maker's shares to their lowest level in nearly 12 years. The Nasdaq-listed company reported fourth-quarter revenue of $10.97 billion, beating estimates of $10.85 billion despite a 1% year-over-year decline. Diluted earnings per share reached $0.72, surpassing forecasts of 12 cents, largely because of an expected $986 million refund of duties under the International Emergency Economic Powers Act. The tariff recovery follows a U.S. Supreme Court ruling that struck down many of the global trade duties, boosting gross margins by 890 basis points to 49.2%.
The tariff boost overshadowed weak underlying sales, as Nike directed investors to focus on a cautious fiscal 2027 revenue forecast expecting a low-to-mid single-digit decline. Greater China revenue fell 12% to $1.297 billion, while direct-to-consumer sales dropped 7%. Chief Financial Officer Matthew Friend cited softer discretionary spending and slowed sell-through across the business. Hill, however, highlighted structural progress in performance categories, noting that the running division generated an additional $1 billion in revenue over five quarters and gained 5 percentage points of market share, alongside planned product refreshes for Nike Sportswear later this year.
From the sources (20 posts)
@zerohedge*NIKE 4Q EPS 72C VS. 14C Y/Y *NIKE 4Q REV. $10.97B VS. $11.10B Y/Y
@zerohedge*NIKE 4Q GROSS MARGIN 49.2% VS. 40.3% Y/Y *NIKE 4Q GREATER CHINA EBIT $243M, -20% Y/Y
@wallstengine$NKE Q4’26 EARNINGS HIGHLIGHTS 🔹 Revenue: $10.972B (Est. $10.85B) 🟢; -1% YoY 🔹 Gross Margin: 49.2%; +890 bps 🔹 EPS: $0.72; includes $0.52 benefit from expected IEEPA tariff recovery 🔹 Wholesale: $6.6B; +4% reported 🔹 NIKE Direct: $4.1B; -7
@financialjuice$NKE Nike Q4 Earnings EPS $0.72, est. $0.12 vs 14c YoY Revenue $10.97B, est. $10.84B vs $11.1B YoY Gross Margin 49.2% vs. 40.3% y/y Inventory $7.50B, +0.2% y/y Total Nike Brand Revenue $10.72B, -0.4% y/y Greater China EBIT $243M, -20% y/y
@alphasenseinc$NKE Earnings: - Full year revenues were $46.4 billion, flat on a reported basis and down 2 percent on a currency-neutral basis - Fourth quarter revenues were $11.0 billion, down 1 percent on a reported basis and down 4 percent on a curren
@wallstengineNike’s $NKE Q4 gross margin jumped 890 bps to 49.2%, driven almost entirely by an expected $986M recovery of IEEPA tariffs. The tariff recovery added roughly 900 bps to gross margin and $0.52 to EPS in the quarter.
@businessNike reported better-than-expected results last quarter, a sign that CEO Elliott Hill’s turnaround efforts are gaining some traction
@firstsquawkNIKE Q4: REVENUE $10.97B (-1.1% Y/Y); GROSS MARGIN 49.2% VS 40.3% Y/Y; INVENTORY $7.50B (+0.2% Y/Y); TOTAL NIKE BRAND REVENUE $10.72B (-0.4% Y/Y); GREATER CHINA EBIT $243M (-20% Y/Y)
@stockmktnewzNike $NKE stock is moving lower in after hours following its earnings 🔴🔴
@thetranscript_Nike CFO: "We delivered fourth quarter results in line with our expectations, demonstrating financial discipline in an increasingly challenging operating environment, where sell-through remains challenged" $NKE: -3% AH
@wsjThe sneakers and apparel company said the results were in line with its expectations, despite facing what it called an increasingly challenging operating environment where sell-through remains under pressure.
@cnbcNike results top estimates even as China sales drop 12%; retailer expects $986 million tariff refund
@firstsquawkNIKE SEES WEAKER DEMAND, WARNS OF CHALLENGING OUTLOOK • NIKE CEO SAYS THE COMPANY IS SEEING WEAKER STORE TRAFFIC AND SOFTER DISCRETIONARY SPENDING ACROSS GLOBAL MARKETS • NIKE IS RIGHT-SIZING ITS DISTRIBUTION NETWORK TO BETTER MATCH DEMAN
@reutersNike forecasts surprise fall in full-year revenue, shares tumble 4%
@alphasenseinc$NKE CEO Elliot Hill says Running grew $1 billion over the last five quarters and they gained five market share points. They have taken $2 billion out of the market in FY26 of their classic franchises. In the second half of FY27, Nike Sport
@cnbcNike on Tuesday posted quarterly earnings and revenue that topped Wall Street expectations, despite another sales decline in its key China market. The company said its gross margin increased 8.9% during the quarter, largely due to an expec
@briansozziNike is really, really struggling:
@reutersbizWATCH: Nike signaled that CEO Elliott Hill's turnaround strategy still faces significant obstacles, as persistent weakness in China and a cautious outlook overshadowed a modest fourth-quarter revenue beat https://t.c
@reutersNike signaled that CEO Elliott Hill's turnaround strategy still faces significant obstacles, as persistent weakness in China and a cautious outlook overshadowed a modest fourth-quarter revenue beat
@barchartBREAKING 🚨: Nike $NKE falls to its lowest price in almost 12 years 📉 📉