05:06 AM EST, 12/20/2024 (MT Newswires) -- (Updates with the stock move and a Truist Securities note in the last five paragraphs.)

Nike ( NKE ) reported fiscal Q2 earnings late Thursday of $0.78 per diluted share, down from $1.03 a year earlier.

Analysts polled by FactSet expected $0.63.

Revenue in the three months ended Nov. 30 fell to $12.35 billion from $13.39 billion a year earlier.

Analysts surveyed by FactSet expected $12.11 billion.

Nike's ( NKE ) shares were up 9% in after-hours activity on Thursday but were down more than 3% in premarket activity on Friday.

Chief Executive Officer Elliot Hill's accelerated turnaround efforts are driving pressure on the outlook for H2 of fiscal 2025, according to a note from Truist Securities following Nike's ( NKE ) earnings call.

"While we expected Nike ( NKE ) to lower 2HF25 expectations, the magnitude of pressure was beyond what we were anticipating," Truist analysts, including Scot Ciccarelli, said in the note.

Fiscal Q3 guidance calls for a lower-double-digit percent revenue decline, 300-350 basis points of pressure on gross margin percent, and slightly lower selling, general, and administration expenditure year over year, Truist said.

Additionally, "Q4 pressures will likely be more intense as they are able to execute on more planned turnaround initiatives," the analysts said.