Nike Inc (NYSE:NKE) stock fell 0.80% (As on December 20, 11:05:14 AM UTC-4, Source: Google Finance) after the company reported fiscal second-quarter earnings that surpassed Wall Street expectations, offering a bright spot for new CEO Elliott Hill in his debut earnings call. NIKE Brand revenues were $12.0 billion, down 7 percent on a reported basis and down 8 percent on a currency-neutral basis, driven by declines across all geographies. NIKE Direct revenues were $5.0 billion, down 13 percent on a reported basis and down 14 percent on a currency-neutral basis, primarily due to a 21 percent decrease in NIKE Brand Digital and a 2 percent decrease in NIKE-owned stores. Wholesale revenues were $6.9 billion, down 3 percent on a reported basis and down 4 percent on a currency-neutral basis. Revenues for Converse were $429 million, down 17 percent on a reported basis and down 18 percent on a currency-neutral basis, due to declines across all territories. Inventories for NIKE, Inc. were $8.0 billion, flat compared to the prior year, reflecting an increase in units offset by lower product input costs and product mix shifts. Cash and equivalents and short-term investments were $9.8 billion, down approximately $0.2 billion from last year, as cash generated by operations was more than offset by share repurchases, cash dividends and capital expenditures. Net income was $1.2 billion, down 26 percent

NKE in the third quarter of FY 25 has reported the adjusted earnings per share of 78 cents, beating the analysts’ estimates for the adjusted earnings per share of 63 cents, according to analysts’ estimates compiled by LSEG. The company had reported the adjusted revenue decline of 8 percent to $12.35 billion in the third quarter of FY 25, less than the 9.41% fall analysts had expected, as newer versions of performance and running shoes attracted shoppers. Gross margin decreased 100 basis points to 43.6 percent, primarily due to higher discounts and changes in channel mix, partially offset by lower product input costs as well as lower warehousing and logistics costs.

The Beaverton, Oregon-based sportswear company, which has been scrambling to regain market dominance in the face of intensifying competition, predicted revenue would fall by low double-digits in the third quarter. Analysts, on average, had expected revenue to fall 7.65% to $11.48 billion for the current quarter, according to data compiled by LSEG.

The company emphasized its focus on reigniting brand momentum through initiatives centered on sports, a strategy Hill described as “essential to our long-term value creation.”