07:22 AM EDT, 10/02/2024 (MT Newswires) -- Nike's ( NKE ) fiscal Q1 results indicate that the company's "product pivot" could take longer than initially expected, RBC Capital Markets said in a Wednesday note.

Nike ( NKE ) reported fiscal Q1 earnings of $0.70 per diluted share, down from $0.94 a year earlier, as revenue fell to $11.59 billion from $12.94 billion.

According to the investment firm, Nike's ( NKE ) fiscal Q1 unit growth and traffic were below targets, wholesale order books are flat for the fiscal year's spring/summer compared with year-ago levels, and inventories are elevated in the marketplace.

RBC also noted that the company withdrew its fiscal 2025 guidance amid an upcoming leadership transition.

The investment firm lowered its fiscal 2025 estimates for the company's earnings per share by 8% and revenue by 3%, given the fiscal Q1's soft traffic and sales and expectations of extended softness in the next quarters.

RBC has a sector perform rating on Nike ( NKE ), with a lower price target of $82 from $85.

Shares of Nike ( NKE ) were down more than 5% premarket Wednesday.

Price: 84.14, Change: -4.99, Percent Change: -5.60