NIKE (NYSE:NKE) Posts Quarterly Earnings Results, Beats Expectations By $0.07 EPS

NIKE (NYSE:NKE) issued its earnings results on Tuesday. The footwear maker reported $0.20 earnings per share for the quarter, beating analysts’ consensus estimates of $0.13 by $0.07, Zacks reports. NIKE had a return on equity of 16.41% and a net margin of 4.84%.The firm had revenue of $10.97 billion for the quarter, compared to the consensus estimate of $10.85 billion. During the same quarter last year, the business posted $0.14 EPS. The company’s revenue was down 1.1% compared to the same quarter last year.

Here are the key takeaways from NIKE’s conference call:

• NIKE said its performance business continued to strengthen, with running delivering five straight quarters of double-digit growth and roughly $1 billion of added business over that stretch. Management also highlighted share gains in running across Western Europe and North America.
• The company is leaning into its new Sport Offense operating model, moving about 8,000 employees into sport-focused teams and simplifying supply chain and technology to improve speed and execution. Leadership framed this as the foundation for longer-term growth rather than a near-term fix.
• Sportswear and Jordan streetwear remain weak, with sell-through still challenged and management expecting both businesses to stay negative in fiscal 2027. NIKE said these categories represent about half of revenue, making their recovery critical to a broader turnaround.
• North America showed the clearest momentum, with Q4 revenue up 3% and wholesale up 10%, while Foot Locker became positive on both revenue and retail sales for the first time in four years. Management said the region is leading the company’s comeback and that its marketplace cleanup is improving profitability.
• NIKE took a major one-time tariff recovery benefit of $986 million in Q4, which boosted reported EPS and gross margin; excluding it, gross margin was essentially flat year over year. Even so, tariffs remain a headwind, and the company is guiding for revenue down low-to-mid single digits with gross margin expansion beginning earlier in fiscal 2027.

NIKE Price Performance

NYSE:NKE traded down $0.40 during mid-day trading on Tuesday, reaching $41.08. The stock had a trading volume of 67,192,179 shares, compared to its average volume of 20,744,357. The stock has a market capitalization of $60.84 billion, a P/E ratio of 27.21, a P/E/G ratio of 1.77 and a beta of 1.12. NIKE has a one year low of $40.00 and a one year high of $80.17. The firm has a 50 day moving average price of $44.11 and a two-hundred day moving average price of $53.74. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.45 and a current ratio of 2.14.

NIKE Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 1st. Stockholders of record on Monday, June 1st will be issued a $0.41 dividend. This represents a $1.64 dividend on an annualized basis and a dividend yield of 4.0%. The ex-dividend date is Monday, June 1st. NIKE’s dividend payout ratio is presently 108.61%.

Analysts Set New Price Targets

A number of brokerages recently commented on NKE. Royal Bank Of Canada lowered shares of NIKE from an “outperform” rating to a “sector perform” rating and decreased their price target for the company from $70.00 to $50.00 in a research note on Wednesday, June 10th. Williams Trading cut their price target on NIKE from $80.00 to $57.00 and set a “buy” rating for the company in a research note on Wednesday, April 1st. Robert W. Baird lowered their price objective on NIKE from $85.00 to $70.00 and set an “outperform” rating for the company in a research note on Wednesday, April 1st. Berenberg Bank restated a “neutral” rating on shares of NIKE in a report on Wednesday, May 6th. Finally, Needham & Company LLC reaffirmed a “hold” rating on shares of NIKE in a research report on Thursday, June 4th. Fourteen equities research analysts have rated the stock with a Buy rating, nineteen have given a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $58.86.

NIKE News Summary

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: NIKE posted fiscal Q4 earnings of $0.72 per share, far above analyst estimates, and revenue of about $10.97 billion also topped expectations. Nike Fourth-Quarter Revenue Slips as Expected Tariff Refunds Boost Earnings
• Positive Sentiment: Gross profit and operating profit improved sharply, helped by lower costs and a tariff refund, suggesting margins may be stabilizing. Nike earnings crushed Wall Street’s estimates, but there’s a catch
• Neutral Sentiment: International momentum continues to offset weakness in North America, which supports the case for a broader recovery but does not yet fully solve the growth problem. Does NIKE’s International Momentum Outrun North America Weakness?
• Neutral Sentiment: Analysts had already lowered expectations ahead of the report, so the earnings beat may have been partly anticipated by a very low bar. Nike (NKE) Will Report Q4 Earnings Tomorrow. Here’s What Analysts and Options Traders Expect
• Negative Sentiment: Revenue still declined about 1% year over year, and China sales fell 12%, reinforcing worries that demand remains uneven and the turnaround is taking longer than hoped. Nike earnings, revenue top estimates even as China sales drop 12%
• Negative Sentiment: Recent analyst commentary and target cuts, including JPMorgan’s lower price target, reflect ongoing caution around Nike’s ability to complete its turnaround quickly. Nike Stock Slides Despite Q4 Earnings Beat As Turnaround Drags On

Insider Buying and Selling at NIKE

In other news, Director John W. Rogers, Jr. acquired 4,000 shares of the stock in a transaction dated Thursday, April 9th. The stock was purchased at an average cost of $43.34 per share, with a total value of $173,360.00. Following the completion of the purchase, the director owned 41,022 shares in the company, valued at approximately $1,777,893.48. The trade was a 10.80% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Philip Mccartney sold 17,398 shares of the stock in a transaction that occurred on Friday, June 12th. The stock was sold at an average price of $46.18, for a total value of $803,439.64. Following the completion of the sale, the executive vice president owned 53,133 shares of the company’s stock, valued at approximately $2,453,681.94. This trade represents a 24.67% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders purchased 64,441 shares of company stock worth $2,734,204 over the last quarter. Company insiders own 0.80% of the company’s stock.

Hedge Funds Weigh In On NIKE

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. J.Safra Asset Management Corp bought a new position in NIKE in the fourth quarter worth approximately $29,000. Kemnay Advisory Services Inc. purchased a new position in shares of NIKE in the 4th quarter valued at approximately $30,000. Prosperity Bancshares Inc acquired a new stake in shares of NIKE during the fourth quarter worth $32,000. Litman Gregory Wealth Management LLC acquired a new stake in NIKE during the 4th quarter worth about $32,000. Finally, Jessup Wealth Management Inc acquired a new stake in shares of NIKE during the fourth quarter worth about $38,000. Hedge funds and other institutional investors own 64.25% of the company’s stock.

About NIKE

Nike, Inc (NYSE: NKE) is a global designer, marketer and distributor of athletic footwear, apparel, equipment and accessories. Founded in 1964 as Blue Ribbon Sports by Phil Knight and Bill Bowerman and renamed Nike in 1971, the company is headquartered near Beaverton, Oregon. Nike develops and commercializes products across performance and lifestyle categories for sports including running, basketball, soccer and training, and is known for signature technologies and design-driven product lines.

The company markets products under several primary brands, including Nike, Jordan and Converse, and sells through a combination of wholesale relationships, branded retail stores and direct-to-consumer channels such as company-operated stores and digital platforms (e.g., Nike.com and mobile apps).