Nike’s Sales and Profits Top Estimates in New CEO’s First Quarter | Global News Avenue

Nike (of)’s fiscal second-quarter results beat analysts’ expectations, the first since new CEO Elliott Hill took over in October.

The sportswear maker reported net profit of $1.16 billion on revenue of $12.35 billion analyst estimates Net profit was $968 million on revenue of $12.12 billion, according to Visible Alpha. Last year, Nike reported profits of $1.58 billion on revenue of $13.39 billion.

“We are taking immediate action to reposition our business so that we can return to driving long-term shareholder value,” New said. CEO Elliot Hilltook over Nike’s top job in October.

Hill unveiled a series of new initiatives that are part of his plan to return Nike to growth, including focusing on major sports, cities and countries and reducing the number of promotions in Nike’s online shopping experience.

Nike shares rose in after-hours trading shortly after the report was released, but later gave up most of those gains. As of Thursday’s close, the stock’s 2024 share price was down nearly 30%.

Nike says it’s making progress in shifting to updated product portfolio

Chief Financial Officer Matthew Friend said the quarter “generally met our expectations” and that the company was continuing to “make progress on transforming our portfolio.”

Friend said third-quarter revenue is expected to be down low-single digits compared with last year, while Nike’s margins are also likely to be pressured by new investments and product mix shifts.

The forecast comes after the company suspended its outlook. first quarter reportsaid the decision would give Hill more time as CEO.

Nike’s sales and stock price fell last year, and executives said they were looking to cut costs and pivot to Focus on new productsas the brand faces increasing competition from domestic rivals and major markets such as China.

Analysts have been bullish on the CEO change and said that while Hill still faces same challenge Embattled predecessor John Donahoe believes bringing a company veteran back to the helm could help Nike turn a profit.

Updated—December 19, 2024: This article has been updated to include additional information and reflect the latest share values.