Important points
Nike will report results after the market closes on Tuesday, with analysts expecting sales and profits to decline from a year ago, marking the report as John Donahoe’s last as CEO. It will be. Earlier this month, Nike announced plans to hire Elliott Hill, a Nike veteran of more than 30 years, as CEO next month. Analysts say Nike may lower its full-year forecast and reschedule its investor day, currently set for Nov. 19.
Nike (NKE) will report its fiscal 2025 first-quarter financial results after the bell on Tuesday, weeks after announcing a CEO change with Elliott Hill replacing John Donahoe next month.
Analysts expect sales and profits to decline year over year, with total sales expected to fall about 10% to $11.65 billion from $12.94 billion in the year-ago period. Analysts at Deutsche Bank said this quarter was the bottom of Nike’s sales decline and should recover.
Net income is expected to fall by almost half to $770.9 million from $1.45 billion in the year-ago period. This is because expenses are expected to increase due to an increase in advertising during the Olympic Games held during the current quarter. Focus on developing new products.
Q1 2025 Q4 2024 Analyst estimates for Q1 2024 Revenue $11.65 billion $12.61 billion $12.94 billion Diluted EPS 51 cents 99 cents 94 cents Net income $770.9 million $1.5 billion 14.5 billion dollars
Key indicators: Full-year outlook
In its latest report, Nike gave a pessimistic outlook for sales in the first quarter and fiscal year 2025, citing concerns about the impact on near-term sales of the Chinese market, online sales and a shift in focus to new products. Ta. The company’s stock price plummeted on this news.
Ahead of Tuesday’s report, Baird analysts said they believed Nike could beat expectations in the first quarter, but the sports apparel maker is facing a new CEO and a transition period. The company said it may lower its sales forecast for the second half of this year to provide a “cushion” during the period. We will focus on improving profitability.
Analysts at Deutsche Bank said they believed Nike would maintain its full-year outlook as part of a “gradual improvement story”, although a downward revision to the outlook is possible.
Business highlights: CEO exchange, investor day plans
Tuesday’s report will be Donahoe’s last as CEO, with Hill expected to take over the top role in mid-October. Analysts have largely welcomed the changes, saying that having a long-time company veteran take over as CEO and having Nike veterans in other executive positions will boost morale and help align the company’s vision. He says it will help move forward.
Some analysts believe Hill will spend more time as CEO before presenting Nike’s new long-term vision to investors. We anticipate that the Investor Day may be postponed.
Nike stock is up less than 1% recently, continuing its recent gains since announcing a CEO change.
