06:42 AM EDT, 10/02/2024 (MT Newswires) -- Nike ( NKE ) shares declined early Wednesday as the sportswear giant withdrew its full-year guidance and postponed its investor day following the appointment of a new chief executive last month, while the company's fiscal first-quarter results fell year over year.

In September, the athletic footwear and apparel maker announced that John Donahoe will retire as CEO later this month and be succeeded by former longtime company executive Elliott Hill. Given the CEO transition, Nike ( NKE ) decided to withdraw its fiscal 2025 outlook and provide quarterly guidance for the balance of the year, Chief Financial Officer Matthew Friend said during a late Tuesday earnings call.

"This provides Elliott with the flexibility to reconnect with our employees and teams, evaluate the current strategies and business trends, and develop our plans to best position the business for fiscal 2026 and beyond," Friend said on the call, according to a Capital IQ transcript. "To that end, we have also decided to postpone our investor day." The investor day was originally scheduled for November.

Nike ( NKE ) shares fell 5.1% in premarket activity.

The company previously anticipated revenue to decline by mid-single digits in fiscal 2025, with the first half to be down in the high single digits, Friend told analysts in June. Nike's ( NKE ) revenue expectations "have moderated since the start of the year," given traffic trends on its digital channel, retail sales trends across the marketplace and final order books for spring, Friend said on the Tuesday call. "We continue to see indications of slight second-half improvement in revenue trends versus our first half, as we plan to introduce and scale newness and innovation across the marketplace," the CFO added.

For the three-month period ended August, the sportswear giant recorded earnings of $0.70 a share, down from $0.94 the year before, but ahead of the Capital IQ-polled consensus of $0.52. Revenue slipped 10% year over year to $11.59 billion, missing the Street's view for $11.65 billion.

Revenue for the Nike brand slid 10% to $11.11 billion, weighed down by declines in footwear and apparel. North American sales dropped 11%, while Europe, the Middle East and Africa fell 13%. Revenue in China declined 4% while Asia Pacific and Latin America decreased 7%.

"While (first-quarter) revenue was largely in line with our plan 90 days ago, we delivered lower unit sales than we expected, partially offset by a higher (average selling price)," Friend said. "Retail sales underperformed our plan, including our wholesale partners, with slightly elevating marketplace inventories requiring higher levels of promotional activity in (the first quarter) to drive conversion."

For the second quarter, the sportswear giant estimates revenue to decrease by 8% to 10%, according to Friend. Gross margin is forecast to fall by about 150 basis points with higher promotions, channel mix headwinds and supply chain deleverage more than offsetting lower product costs and a decreasing benefit from the company's pricing actions, the CFO said.

Price: 84.48, Change: -4.65, Percent Change: -5.22