Nike reported first quarter earnings per share of $0.48 and revenue of $11.21 billion, missing analyst estimates of $11.33 billion, sending the stock lower in after-hours trading. Greater China EBIT came in at $248 million, below estimates of $312 million, and the company said it expects revenue to decline high single digits in fiscal 27. CFRA analyst Zachary Warring, who has a buy rating on the stock, said the quarter looked like one you would expect from a new CEO three or four quarters in rather than two years in, and that Nike needs to nail down the operating side of the business and focus on profitability. Warring noted the stock was down 40% this year heading into the print and around 50% over the past 12 months, but said valuation and expectations have been reset, with the shares now trading in the teens on next 12 month earnings rather than 40 to 50 times. He said he likes CEO Elliott Hill's strategy of leading in sports and pointed to successful launches including Caitlyn Clark's new shoe, Nike Mind, and soccer cleats, while flagging the need to clean out inventory in Asia and turn around the Jordan line.
Nike IncNike Q1 EPS $0.48 and revenue $11.21B missed estimates, with guidance for high single-digit revenue decline in fiscal 27.
