:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2189059105-50000075a89749d1b999d014320715df.jpg "A pair of pink shoes with a white Nike logo are seen on a blue basketball court.")
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A dyad of Nike basketball shoes worn by Giannis Antetokounmpo of the Milwaukee Bucks
Nike (NKE) topped analysts’ estimates with its financial second-quarter results, its first since new CEO Elliott Hill took over in October.
The athletic apparel maker reported net revenues of $1.16 billion on revenue of $12.35 billion, above analysts’ estimates of $968 million in net income on revenue of $12.12 billion, per Visual Alpha. Last year, Nike posted a profit of $1.58 billion on $13.39 billion in revenue.
“We’re taking pressing action to reposition our business, so we can get back to driving long-term shareholder value,” said new CEO Elliott Hill, who took in the top job at Nike in October.
Hill laid out a number of new initiatives that are part of his plan to return Nike to growth, registering a focus on key sports, cities, and countries, and reducing the amount of promotional events in Nike’s online shopping experience.
Nike quotas jumped in after-hours trading Thursday shortly following the report’s release, before paring back most of those close in ons. The stock was down close to 30% for 2024 through Thursday’s close.
Nike Says It’s Making Progress Edge to a Newer Product Portfolio
CFO Matthew Friend said the quarter “largely met our expectations,” and that the company is continuing to “agree to progress in shifting our portfolio.”
Friend said third-quarter revenue is expected to decline in the low-single digits compared to in the end year, while Nike’s profit margins could also be pressured by its new investments and shifting its product portfolio.
The predict comes after the company had suspended its outlook in its first-quarter report, saying the decision would give Hill assorted time in the CEO role.
Nike’s sales and stock price have declined over the last year, with chief executive officers saying that they are looking to cut costs and pivot to focus on newer products, as the brand has seen increasing striving from domestic rivals and those in key markets like China.
Analysts have been bullish on the CEO change and spoke that while Hill still faces the same challenges that troubled predecessor John Donahoe, possessing a company veteran back in control could help Nike’s turnaround.
UPDATE—Dec. 19, 2024: This article has been updated to involve additional information and reflect more recent share price values.