Overview

* Nike ( NKE ) fiscal Q1 revenue rises 1% to $11.7 bln, beating analyst expectations, per LSEG data

* Net income for Q1 declines 31% but beats analyst estimates, per LSEG data

* Gross margin decreases 320 basis points to 42.2% due to lower prices, higher tariffs

Outlook

* Company cites dynamic operating environment impacting future recovery timelines

Result Drivers

* WHOLESALE GROWTH - Wholesale revenues rose 7% on a reported basis, driven by strong performance in North America

* DIGITAL DECLINE - NIKE Direct revenues fell 4% due to a 12% drop in digital sales

* GROSS MARGIN PRESSURE - Gross margin fell 320 basis points due to lower average selling prices and higher tariffs

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q1 Beat $11.72 $11 bln

Revenue bln (22

Analysts

)

Q1 EPS $0.49

Q1 Net Beat $727 mln $396.80

Income mln (19

Analysts

)

Q1 Gross 42.2%

Margin

Q1 Gross $4.94

Profit bln

Q1 $922 mln

Pretax

Profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 20 "strong buy" or "buy", 17 "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 ( NKE ) is $78.00, about 10.8% above its September 29 closing price of $69.55

* The stock recently traded at 36 times the next 12-month earnings vs. a P/E of 31 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)