Nike Inc (NYSE:NKE, ETR:NKE) reported fiscal second-quarter earnings that surpassed Wall Street expectations, offering a bright spot for new CEO Elliott Hill in his debut earnings call.
The sportswear giant posted earnings per share of $0.78, beating analysts' estimates of $0.64. Revenue came in at $12.4 billion, ahead of the expected $12.13 billion.
Shares surged 10% in after-hours trading following the announcement.
“We’re positioning Nike for long-term growth by returning sport to the center of everything we do,” Hill said. “This quarter’s results reflect our commitment to delivering value for shareholders.”
Nike faced revenue declines across all geographies, with Greater China—a historically strong market—falling 8% year-over-year. The Nike Brand reported $12 billion in revenue, down 7% from the prior year, while Converse dropped 17%, generating $429 million.
Footwear sales narrowly missed expectations, though improved expense control partially offset softer performance. The company’s gross margin of 43.6% fell 100 basis points year-over-year due to higher promotional activity.
Digital sales also weighed on results, falling 21% year-over-year and pressuring Direct-to-Consumer growth.
Despite these setbacks, Nike Inc (NYSE:NKE, ETR:NKE) increased its quarterly dividend by 7% to $0.40 per share and returned $1.6 billion to shareholders through dividends and stock buybacks.
Nike provided cautious guidance, projecting flat revenue growth for fiscal 2025 amid macroeconomic challenges. The company emphasized its focus on reigniting brand momentum through initiatives centered on sports, a strategy Hill described as “essential to our long-term value creation.”
However, questions linger about whether reduced spending on “demand creation,” such as marketing and brand-building activities, could weigh on future sales. Analysts will look to further details from the company’s earnings call for clarity on this approach.