:max_bytes(150000):strip_icc()/GettyImages-2158771651-4820f21a91054fae81437e3e4dea200c.jpg "Nike Stock Drops on Revenue Miss, Guidance Warning")
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Key Takeaways
- Nike shares fell in extended trading Thursday after the company reported fourth-quarter revenue that fell short of analysts’ estimates and said it would update its fiscal 2025 guidance.
- Revenue fell from the year-ago period and was below expectations, while net income rose and came in above estimates.
- Nike CEO John Donahoe said the company is taking on “near-term challenges head-on.”
Nike (NKE) reported fourth-quarter revenue that missed analysts’ estimates and said the results drove the company to update its fiscal 2025 guidance, sending shares lower in extended trading Thursday.
The company reported revenue of $12.6 billion for the fiscal fourth quarter of 2024, down 2% from the year-ago period and below analysts’ expectations, according to estimates compiled by Visible Alpha.
Net income came in at $1.5 billion or 99 cents per share, above the $1.03 billion or 66 cents per share in the same period a year prior, and higher than analysts’ projections.
| Q4 2023 | Analyst Estimates for Q4 2024 | Q4 2023 | |
| Revenue | $12.6 billion | $12.88 billion | $12.83 billion |
| Diluted Earnings Per Share | 99 cents | 84 cents | 66 cents |
| Net Income | $1.5 billion | $1.27 billion | $1.03 billion |
Nike CEO John Donahoe said the company is taking on “near-term challenges head-on while making continued progress in the areas that matter most to NIKE’s future — serving the athlete through performance innovation, moving at the pace of the consumer and growing the complete marketplace.”
Donahoe added “I’m confident that our teams are lining up our competitive advantages to create greater impact for our business.”
CFO Matthew Friend said that the “fourth quarter results highlighted challenges that have led us to update our Fiscal ’25 outlook.” The company did not provide specific figures for the changes in its earnings release.
Friend said the company is “taking actions to reposition NIKE to be more competitive, and to drive sustainable, profitable long-term growth.”
Nike shares fell more than 6% in extended trading to $87.90 as of 5:20 p.m. ET Wednesday following the release.