Overview
Athletic apparel giant's fiscal Q4 revenue fell 1% yr/yr but beat analyst expectations
Net income for fiscal Q4 surged, beating analyst expectations, driven by IEEPA tariff recovery
Company cited ongoing top-line headwinds, with declines in direct sales and weakness in China
Outlook
Nike did not provide specific guidance for the current quarter or fiscal year
Result Drivers
IEEPA TARIFF RECOVERY - Gross margin and net income benefited from expected recovery of IEEPA tariffs, adding about 900 basis points to gross margin and $0.52 to diluted EPS
DIRECT SALES DECLINE - NIKE Direct revenues fell 7% due to a 12% decrease in digital and 7% decrease in owned stores
WHOLESALE GROWTH - Wholesale revenues rose 4%, driven by growth in North America, partially offset by declines in Greater China
Company press release:
Key Details
Metric Beat/Miss Actual Consensus Estimate | Q4 Revenue Beat $10.97 bln $10.86 bln (24 Analysts) | Q4 EPS $0.72 | Q4 Net Income Beat $1.07 bln $201.03 mln (22 Analysts) | Q4 Gross Margin 49.2% | Q4 Gross Profit $5.39 bln | Q4 Pretax Profit $1.33 bln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 24 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the footwear peer group is "buy"
Wall Street's median 12-month price target for Nike Inc is $52.65, about 26.9% above its June 29 closing price of $41.48
The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 29 three months ago
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