Nike Inc (NYSE:NKE) stock fell 5.69% (As on October 2, 11:26:56 AM UTC-4, Source: Google Finance) after the company reported mixed fiscal first-quarter results as revenue fell short of analyst estimates and the sportswear giant said it would postpone its investor day amid a leadership transition. Further, the company withdrew its annual revenue guidance, just as a new CEO is set to take charge. NIKE Brand Revenues were $11.1 billion, down 10 percent on a reported basis and down 9 percent on a currency-neutral basis, due to declines across all geographies. NIKE Direct revenues were $4.7 billion, down 13 percent on a reported basis and down 12 percent on a currency-neutral basis, primarily due to a 20 percent decrease in NIKE Brand Digital, partially offset by a 1 percent increase in NIKE-owned stores. Wholesale revenues were $6.4 billion, down 8 percent on a reported basis and down 7 percent on a currency-neutral basis. Revenues for Converse were $501 million, down 15 percent on a reported basis and down 14 percent on a currency-neutral basis, due to declines across all territories.

Moreover, gross margin increased 120 basis points to 45.4 percent, primarily due to lower NIKE Brand product costs, lower warehousing and logistics costs, and benefits from strategic pricing actions from the prior year. Net income was $1.1 billion, down 28 percent. Inventories for NIKE, Inc. were $8.3 billion, down 5 percent compared to the prior year, reflecting product mix shifts and lower product input costs. Cash and equivalents and short-term investments were $10.3 billion, up approximately $1.5 billion from last year, as cash generated by operations was partially offset by share repurchases, cash dividends and capital expenditures.

NKE in the first quarter of FY 25 has reported the adjusted earnings per share of 70 cents, beating the analysts’ estimates for the adjusted earnings per share of 52 cents. The company had reported the adjusted revenue decline of 10 percent to $11.59 billion in the first quarter of FY 25, missing the analysts’ estimates for revenue of $11.65 billion.

Additionally, in the first quarter, the Company returned approximately $1.8 billion to shareholders, including the dividends of $558 million, up 6 percent from the prior year and share repurchases of $1.2 billion, reflecting 14.8 million shares retired as part of the Company’s four-year, $18 billion program approved by the Board of Directors in June 2022. As of August 31, 2024, a total of 99.7 million shares have been repurchased under the program for a total of approximately $10.2 billion.