Key Takeaways
- Nike shares tumbled in extended trading Tuesday after the company withdrew its full-year outlook ahead of its transition to a new CEO later this month.
- The athletic apparel giant also said it will postpone its investor day originally scheduled for Nov. 19.
- Nike’s net income for the fiscal first quarter of 2025 beat analysts’ expectations but revenue slightly missed. Its second-quarter guidance fell short as well.
Nike (NKE) shares tumbled in extended trading Tuesday after the company withdrew its full-year outlook ahead of its transition to a new CEO later this month.
The athletic apparel giant reported net income of $1.1 billion for the fiscal first quarter of 2025, down 28% from the year-ago period but above analysts’ expectations. However, Nike’s revenue of $11.59 billion, which fell 10% year-over-year, slightly missed the analyst consensus from Visible Alpha.
The year-over-year declines were largely anticipated, and investors will be watching how Elliott Hill leads the company when he takes the reins as CEO in mid-October. Hill is returning to Nike after retiring in 2020.
The company did not offer guidance for the full fiscal year on its earnings call, saying the decision was made to give Hill more time in the CEO role. The company also said it would push back its investor day originally scheduled for Nov. 19.
Nike still offered a forecast for the second quarter, which fell short of expectations. Nike said it anticipates its revenue will decline 8% to 10% year-over-year in the period, compared to estimates of a 6.7% drop.
“A comeback at this scale takes time, but we see early wins—from momentum in key sports to accelerating our pace of newness and innovation,” CFO Matthew Friend said.
Shares of Nike plunged over 7% in extended trading Tuesday following the news.