Nike shares rose 4.9% on Wednesday after the company reported fiscal fourth-quarter results that showed stabilizing gross margins and its first earnings-per-share growth in two years. Revenue slipped 1% to $11 billion, slightly above estimates, while gross margin, excluding a one-time tariff benefit, held at 40.2%. The company guided for a low-to-mid-single-digit revenue decline in the first quarter and flat earnings over the next two quarters, citing a volatile macro environment. Wholesale revenue in North America jumped 10%, and running footwear posted its fifth straight quarter of double-digit growth, though Nike Direct sales fell 6%. Despite the stock’s roughly 75% decline from its peak, the article argues the turnaround remains unproven and advises against buying until meaningful revenue growth materializes.
Nike IncReported stabilizing gross margins and first EPS growth in two years, beating revenue estimates
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