Nike's earnings and revenue exceeded expectations. Why did its stock price fall?
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Sports retailer Nike's quarterly earnings and revenue exceeded analysts' forecasts, according to Bloomberg data. The world’s largest sportswear manufacturer is trying to win back customers and reassure investors that its efforts to turn the business around are paying off, Reuters reports. However, the company’s sales in Nike’s third-largest market—Greater China—once again fell short in the most recent reporting period, CNBC notes.
Against this backdrop, the retailer's stock plummeted 6% in after-hours trading following the close of the main trading session. Since the start of the year, Nike's stock has fallen by more than 35%.
What Nike reported in its report
— The company’s revenue for the fourth fiscal quarter, which ended on May 31, was $10.97 billion, down 1% from the same quarter last year. However, analysts surveyed by LSEG had expected an even sharper decline and had forecast Nike’s quarterly revenue at $10.86 billion.
— Diluted earnings per share were $0.72.
— Gross profit for the quarter rose 8.9% year-over-year, largely due to an expected customs duty refund of nearly $986 million after the Supreme Court overturned some of U.S. President Donald Trump’s tariffs. In the quarter just ended, the tariff refund contributed $0.52 to Nike’s earnings per share.
This article is being updated
This article was AI-translated and verified by a human editor
