WASHINGTON COUNTY (dpa-AFX) - Shares of Nike Inc. were down more than 12
percent in the extended trading on Thursday on the NYSE after the sportswear
giant warned on weak revenues in its first quarter, and trimmed its fiscal 2025
revenue view amid lower fourth-quarter revenues, below the Wall Street
estimates. The quarterly results reflected poor performance by NIKE Brand,
mainly Digital, as well as Converse, its athletic lifestyle footwear, apparel
and accessories unit, despite growth in wholesale revenues. The Beaverton,
Oregon-based company's earnings, however, climbed from last year and beat the
Street estimates.

According to the firm, strong gains within performance product was more than
offset by declines in lifestyle, which had a pronounced impact on its digital
results. These factors, when combined with increased macro uncertainty and
worsening foreign exchange have caused it to reduce guidance for fiscal 2025.

Matthew Friend, Chief Financial Officer, said, '... we have been navigating
several headwinds, which we now expect to have a more pronounced impact on
fiscal '25. Although the next few quarters will be challenging, we are confident
that we are repositioning NIKE to be more competitive with a more balanced
portfolio to drive sustainable, profitable long-term growth.'

In its fourth-quarter earnings call, Nike said the outlook revision reflects
'timelines and pacing to manage marketplace supply of our classic footwear
franchises; lower NIKE Digital growth, especially in the first half of the year
due to lower traffic on fewer launches, planned declines of classic footwear
franchises given Q4 trends, as well as reduced promotional activity.'

In addition, increased macro uncertainty, particularly in Greater China, with
uneven consumer trends continuing in EMEA and other markets around the world,
among others, would also impact the results.

For the first quarter, the company projects revenue to be down approximately 10
percent.

Further, for fiscal 2025, the company now expects reported revenue to be down
mid-single digits with the first half down high single digits.

While announcing the third-quarter results in March, the company had shared some
early thoughts on next fiscal year, expecting revenue and earnings to grow
versus the prior year, while revenue in the first half was expected to be down
low single digits.

In its fourth quarter, Nike's bottom line came in at $1.50 billion, 45 percent
higher than $1.03 billion last year. Earnings per share were $0.99, a growth of
50 percent from prior year's $0.66.

Adjusted earnings were $1.01 per share for the period. Analysts on average had
expected the company to earn $0.83 per share, according to figures compiled by
Thomson Reuters. Analysts' estimates typically exclude special items.

The company's revenue for the quarter fell 2 percent to $12.61 billion from
$12.83 billion last year. The Street was looking for revenues of $12.84 billion
for the quarter. Fourth-quarter revenues were flat on a currency-neutral basis.

After double-digit growth over the past several years, the lifestyle business
declined in the fourth quarter across men's, women's, and Jordan, more than
offsetting strong growth in sport performance business.

Revenues for the NIKE Brand were $12.1 billion, down 1 percent from last year. O
a currency-neutral basis, revenues grew 1 percent with growth in Greater China,
APLA and EMEA, partially offset by a decline in North America.

NIKE Direct revenues were $5.1 billion, down 8 percent due to declines in NIKE
Brand Digital of 10 percent and NIKE-owned stores of 2 percent, while Wholesale
revenues grew 5 percent to $7.1 billion.

NIKE Digital business has grown at an approximately 26 percent CAGR since fiscal
2019, but the fourth-quarter revenues were hit by softer traffic, higher
promotions, and lower sales of certain classic footwear franchises.

Revenues for Converse were $480 million, down 18 percent on a reported basis and
down 17 percent on a currency-neutral basis, primarily due to declines in North
America and Western Europe.

As of May 31, inventories for NIKE were $7.5 billion, down 11 percent compared
to the prior year, reflecting a decrease in units.

On the NYSE, Nike shares closed Thursday's regular trading at $94.19, up 0.14
percent. Folloing the earnings report, the shares were down 12.39 percent in the
extended trading, at $82.52.

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