Nike Inc. (NKE) reported its fiscal third-quarter earnings, beating modest expectations under new CEO Elliott Hill’s watch. However, investors remain cautious about the impact of Trump tariffs on the company’s revenue.
In Thursday’s earnings report, Nike’s revenue reached $11.27 billion, surpassing estimates of $11.03 billion but down from a year-ago total of $12.43 billion. The adjusted earnings per share came in at $0.54, compared to estimates of $0.30 and last year’s $0.98.
The company expects fourth-quarter revenue to be “down in the mid-teens range,” with gross margins projected to drop 400-500 basis points due to the impact of tariffs on imports from China. CFO Matthew Friend warned that these external factors, including geopolitical dynamics and trade uncertainty, will affect consumer confidence.
CEO Hill acknowledged the challenges ahead but expressed confidence in Nike’s identity as a sports company. He plans to refocus on core sports offerings, manage inventory, and rebuild partnerships with retailers to regain market share.
However, some analysts remain skeptical about the impact of Trump tariffs, citing the company’s large exposure to sales outside North America. Needham & Company analyst Tom Nikic stated that investors may not see the same growth as 10-15 years ago due to Nike’s size and market competition from Adidas, Skechers, and Hoka.
Overall, Nike’s stock fell nearly 8% at market open on Friday, leaving investors to weigh the potential benefits of Hill’s leadership against the challenges posed by Trump tariffs.
Source: https://finance.yahoo.com/news/nike-stock-tumbles-as-tariffs-are-expected-to-hit-next-quarters-results-133423690.html