Nike reported a sharp 86% drop in profit for its fiscal fourth quarter, with net income plunging to $211 million from $1.5 billion a year earlier. Sales fell 12% to $11.10 billion, though both earnings and revenue beat Wall Street expectations. The steepest financial impact from Nike’s turnaround strategy—including heavy discounting, wholesale shifts, and digital struggles—hit this quarter. Nike Direct revenue declined 14%, primarily due to a 26% decrease in digital sales. However, Nike stores grew 2% and North American revenue outperformed expectations. CFO Matt Friend said financial pressures are expected to moderate going forward. Investors remain cautious as the company aims to reset its product pipeline, expand apparel and female-focused offerings, and launch a delayed Skims partnership later this year. Nike shares fell over 2% in extended trading.
00:00It's Benzinga, bringing Wall Street to Main Street.
00:02Nike reported a sharp 86% drop in profit for its physical fourth quarter,
00:08with net income plunging to $211 million from $1.5 billion a year earlier.
00:15Sales fell to 12% to $11.10 billion, though both earnings and revenue beat Wall Street expectations.
00:23The steepest financial impact from Nike's turnaround strategy, including heavy discounting, wholesale shifts, and digital struggles, hit this quarter.
00:34Nike direct revenue dropped 14%, led by a 26% fall in digital sales.
00:41However, Nike stores grew 2% and North American revenue outperformed expectations.
00:47CFO Matt Friend said his financial pressures are expected to moderate going forward.
00:54Investors remain cautious as the company aims to reset its product pipeline, expand apparel and female-focused offerings,
01:02and launch a delayed SKIMS partnership later this year.
01:07Nike shares fell over 2% in extended trading.
