Nike The company said after a 17% increase on Friday that its worst struggle is behind it. Better than fear Fiscal fourth quarter earnings report.
Nike reiterated on Thursday that she would take the biggest financial hit from her turnout plan during the quarter, which is pleasant to investors who worry the President Donald TrumpBut tariff hike Major nike manufacturing Hubs like China and Vietnam will derail the return of the company.
Nike posted a poor fourth quarter, as the sales fell by 12%, the net income fell by 86% and the profit margin decreased. But CEO Elliott Hill insisted that the company has emerged from its worst recession, and the slides in sales and profits would start to get moderate in the forward quarters.
Hill said, “The results that we are reporting in Q4 today and in FY25 are not even the standard, but as we said 90 days ago, we are working to re -create the business through our ‘Jeet Now’, having an impact,” is having an impact, “is the name of the company’s turnout plan on an earning call. “From here, we hope that our business results will improve. This is the time to turn on the page.”
With some details about the progress of Nike’s turnaround strategies in the company’s income release, the stocks initially fell when it posted results after the closing bail on Thursday. By the end of an hour’s call with Nike officials and Wall Street Analysts, the stock had increased the extended trade by more than 10%.
Beyond assuring investors that the turnaround plan is working, Hill shared the promising updates at the new product and the wholesale parties of Nike shared efforts to win back, which have been the major areas of focus since taking over in October.
Hill shared details behind Nike’s decision Heroic For First time after 2019 And it is another priority for the company, pushing it to win over women shopkeepers.
During the quarter, the company launched products in over 200 women LED shops, including Artizia, and released its collection with WNBA Star A’za Wilson, which Hill said that was sold in three minutes.
By Friday morning, the stock climbed even more after many banks released a rapid comment on the company. HSBC Upgraded Nike Buy from holdIts first purchase rating on stock in three and a half years.
HSBC also extended its price target to $ 80, reversing 28% from Thursday’s shutdown.
Analyzer Irwan Ramborg wrote in a research note, “In making longer, but we think the divine is finally here.” “We feel that the tangible evidence is that Nike does not have a way to look at the reversal of their sales, and its margin should be repaired, and this despite an adverse tariff headwind.”
Nike results suggest that the company is rebounding on the wall street likes. But don’t call it a return yet.
The sneaker is trying to grow again at an unstable time for the giant economy, as weak consumers raise questions about spirit, growing debt, tariffs and large -scale exile expenses and GDP.
According to the LSEG, Nike still expects a decline in its current quarter in its current quarter with a mid-conclusive percentage of its current quarter.
It has more work to clean the list of stale lifestyle from its classic dunks and Jordan lines. Efforts to separate the old inventory have hit the profit margin and sales as Nike had to rely on deep relaxation, withdrawal channels and off-pris sectors to clean that glute.
In FY 2025, which ended last month, sales for classics such as Air Force 1, Air Jordan 1 and Dunks declined by more than 20% compared to the period of year. In the fourth quarter, it intensified by 30%, which affected the sales by about 1 billion dollars, the Finance Head Mat Mitra said.
The Air Force 1 inventory levels have begun to stabilize, but Nike is still working to clean its sting franchise supply, which will affect the company’s profits through the first half of its current financial year, the friend said.
Both Hill and friend said that Nike’s profit would be under pressure through the first half of FY 2026 as it works through its inventory and struggles with high costs from tariffs. He said that he is expected to improve profits in the second half of the year.
However, when it comes to actual sales growth, it is very early to mention when the company will stop shrinking.
Asked whether there is a landscape where the company could return to revenue growth this year, Hill refused to share a time -line.
Hill said, “Just because of what is going on, we are going to take it 90 days at a time.” “We believe that complete recovery will take time.”
