- Nike‘s 2Q revenue reached $12.35 billion, surpassing the estimate of $12.13 billion, despite a year-over-year decrease of 7.7%.
- North America revenue was $5.18 billion, above the $4.97 billion estimate, but fell 7.9% compared to last year.
- In the EMEA region, revenue was $3.30 billion, exceeding the estimate of $3.22 billion, down 7.4% year-over-year.
- Greater China’s revenue came in at $1.71 billion, missing the estimate of $1.77 billion and declining 8.2% from last year.
- Asia Pacific & Latin America saw revenue of $1.74 billion, beating the estimate of $1.67 billion and decreasing by 3.4% year-over-year.
- Global Brands revenue increased by 8.3% to $13 million, surpassing the estimate of $12.6 million.
- Footwear revenue was $7.66 billion, falling short of the $7.74 billion estimate and declining 11% year-over-year.
- Apparel revenue was higher than anticipated at $3.74 billion, slightly down 1% from last year, with an estimate of $3.4 billion.
- Equipment revenue grew by 14% to $544 million, above the $470.6 million estimate.
- Converse revenue was $429 million, below the $471.2 million estimate, down 17% year-over-year.
- Nike‘s gross margin declined to 43.6% from last year’s 44.6%, exceeding the estimate of 43.1%.
- Earnings per share (EPS) were 78 cents, a drop compared to $1.03 the previous year.
- North America’s Ebit was $1.37 billion, surpassing the $1.14 billion estimate but down 10% year-over-year.
- EMEA’s Ebit reached $831 million, beating the $766.2 million estimate, yet marking a 10% decline year-over-year.
- Greater China’s Ebit was $375 million, significantly lower than the $458.7 million estimate, down 27% year-over-year.
- Asia Pacific & Latin America’s Ebit was $460 million, slightly below the $464 million estimate and 12% down from last year.
- Inventory remained consistent at $7.98 billion, matching the previous year but exceeding the $7.65 billion estimate.
- Cash and cash equivalents stood at $7.98 billion, a 0.8% increase from last year, below the estimate of $8.27 billion.
- The effective tax rate remained steady at 17.9%, compared to an estimated 18.1%.
- Analyst opinions included 23 buys, 20 holds, and 2 sells.
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Nike on Smartkarma
Analysts on Smartkarma are buzzing about Nike‘s recent developments. Value Investors Club highlights Nike as a high-quality company that has faced a recent sell-off, making it an appealing option for long-term investors. Despite some short-term challenges and competition, Nike‘s strong brand reputation and track record suggest positive outcomes for those holding onto investments for five or more years.
Meanwhile, Baptista Research delves into Nike‘s CEO shakeup, signaling challenges ahead for newly appointed Elliott Hill as he takes the reins from John Donahoe. This leadership transition is part of a larger restructuring effort by Nike to navigate evolving business landscapes. Donahoe’s departure follows years of strategic changes, including a focus on direct-to-consumer sales, amidst pressures from flat revenue growth and lower fiscal 2025 guidance.
A look at Nike Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Nike seems to have a moderately positive long-term outlook. With a Value score of 2, the company is perceived to have some room for improvement in terms of its stock valuation. However, scoring a 3 in both Dividend and Growth indicates a promising future for the company in terms of potential dividend payouts and overall business expansion. Additionally, Nike‘s Resilience and Momentum scores of 3 suggest that the company shows stability and a consistent pace of growth, which are favorable factors for investors considering its long-term potential.
NIKE, Inc., a global leader in athletic footwear, apparel, and accessories, caters to men, women, and children worldwide through various retail channels. By earning decent scores across key factors such as Dividend, Growth, Resilience, and Momentum, Nike appears to be positioned well for sustained performance and growth in the long run. Investors may find Nike to be a solid contender in the sports retail market based on its overall outlook and strategic positioning within the industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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