Nike's official earnings report for Q3 FY2025 and analysts' consensus estimates

Nike Beats Q2 Estimates; EPS $0.78, Revenue $12.4B, Stock Up 10% Under New CEO Elliott Hill

Dec 19, 2024, 09:19 PM

Nike Inc. reported second-quarter fiscal 2025 earnings that surpassed analysts' expectations, marking a positive development for new CEO Elliott Hill in his first earnings call since assuming the role in September. The company posted earnings per share of $0.78, exceeding the consensus estimate of $0.64, and revenue of $12.4 billion, above the expected $12.13 billion. Despite an 8% decline in revenue year-over-year before accounting for inflation, Nike's gross margin stood at 43.6%, higher than the anticipated 43.1%, though it fell 100 basis points from the previous year due to discounts. Inventory levels were $7.98 billion, above the expected $7.65 billion. Nike Direct revenue decreased by 13% to $5.0 billion, while wholesale revenue fell by 3% to $6.9 billion. Revenue in China was weak, impacting overall performance. Hill stated, "After an energizing 60 days of being back with my Nike teammates, our clear priority is to return sport to the center of everything we do." The company's stock rose approximately 10% in after-hours trading following the earnings announcement. Analysts noted that the earnings beat was unexpected and suggested that a turnaround may be underway under the new CEO.