Nike's Revenue Slips as Company Unveils Ambitious Restructuring Plan
Nike's fiscal first quarter results revealed a decline in revenue by 4% to $11.2 billion, mainly due to weakness in Greater China and EMEA. The company managed to improve its gross margin by 60 basis points to 42.8%, reduce selling and administrative expenses by 3%, and deliver diluted earnings per share of $0.48.
Despite the top-line decline, Nike's management highlighted ongoing momentum in performance categories under its Sport Offense strategy. However, they acknowledged the need for further work in NIKE Sportswear, Jordan Brand, and Greater China. The company returned approximately $610 million to shareholders via dividends in the quarter.
Nike also unveiled Pace, a multi-year enterprise program aimed at modernizing the global supply chain, realigning operations into three geographies, establishing a new campus in India, and streamlining the organization to reduce costs. The Board approved implementation steps for Pace, with an expected $1.0 billion in pre-tax charges through fiscal 2031.