Nike (NYSE:NKE) reported mixed fiscal first-quarter results, with revenue missing Street expectations and the company announcing it would delay its planned investor day amidst a leadership change.
Additionally, Nike withdrew its annual revenue guidance, with a new CEO set to take over in mid-October. Shares of Nike fell more than 7% intra-day today following the report.
The sportswear giant posted earnings per share of $0.70, surpassing the expected $0.52, on revenue of $11.59 billion, which came in just short of the $11.65 billion forecasted by Wall Street analysts. The beat on earnings was driven by a 120 basis point increase in gross margin, rising to 45.4%.
Nike postponed its previously scheduled investor day and mentioned it would address its guidance strategy during the post-earnings conference call, attributing the delay to its ongoing CEO transition. The company had earlier projected an annual revenue decline in the mid-single digits.
Bernstein analysts noted that Nike is “deep in the midst of a turnaround,” emphasizing the absence of guidance and the lack of catalysts from an investor day. While there are positive early signs of market recovery, analysts pointed out that markdowns are still pressuring both sales and margins. They expressed caution in the near term, stating that without clear guidance or an investor day event, the stock is likely to remain stagnant.
Stifel analysts echoed the sentiment, acknowledging that the scale of Nike’s turnaround requires time. However, they noted that recent market movements suggest otherwise. With a new CEO taking over soon, Stifel believes a return to growth that justifies the stock’s high price-to-earnings ratio might not materialize until the first half of 2026. Given the lack of visibility into revenue improvement, Stifel maintained a cautious outlook, recommending a Hold on the stock.