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Key Takeaways
- Nike stock is falling Wednesday, a day after the company’s declining fiscal first-quarter results.
- The company is transitioning to a new CEO and opted not to issue a full-year outlook Tuesday.
- An investor day originally scheduled for mid-November was also postponed.
Nike (NKE) shares fell Wednesday, a day after the company declined to offer a full-year outlook alongside its fiscal first-quarter results.
The sports apparel giant is transitioning to a new Chief Executive Officer (CEO), with Nike veteran Elliott Hill returning to the company to take the reins later this month. The company said its decisions not to offer fiscal 2025 guidance and to delay its November investor day were made to give Hill more time to get settled.
Last month, the sneaker maker announced that Hill would replace John Donahoe amid a strategy reset in an ongoing effort to revive sales, rebuild wholesale partnerships, and improve branding.
Nike Q1 Profit Sank 28%, Revenue Declined 10%
Nike’s first-quarter revenue fell 10% year-over-year to $11.59 billion, narrowly missing the consensus estimate of analysts polled by Visible Alpha. Net income was $1.1 billion, down 28% from a year ago but above expectation.
Shares of Nike, which fell more than 5% to $84.15 early Wednesday afternoon, are down 22% this year.