NIKE NYSE:NKE delivered a better-than-expected quarter, but management made clear that the turnaround remains a work in progress.
The company said fiscal 2027 revenue is now expected to decline in the low- to mid-single-digit range, reflecting continued pressure in key businesses such as Sportswear and Jordan Streetwear. Still, management struck a more optimistic tone on profitability, saying gross margin expansion is now expected to begin in Q1, earlier than previously anticipated.
CEO Elliott Hill highlighted strong momentum in performance categories, noting that Nike Running has posted 5 consecutive quarters of double-digit growth and gained market share in North America and Western Europe. Wholesale revenue also grew 4% for the fiscal year, helped by stronger relationships with retail partners.
On the earnings front, Nike reported Q4 revenue down 1% and EPS of $0.72, though results were boosted by a one-time $986 million tariff-related benefit. Excluding that gain, EPS would have been $0.20.