Nike Q1 revenue beats estimates as wholesale segment thrives

Overview * Nike fiscal Q1 revenue rises 1% to $11.7 bln, beating analyst expectations, per LSEG data * Net income for Q1 declines 31% but beats analyst estimates, per LSEG data * Gross margin decreases 320 basis points to 42.2% due to lower prices, higher tariffs Outlook * Company cites dynamic operating environment impacting future recovery timelines Result Drivers * WHOLESALE GROWTH – Wholesale revenues rose 7% on a reported basis, driven by strong performance in North America * DIGITAL DECLINE – NIKE Direct revenues fell 4% due to a 12% drop in digital sales * GROSS MARGIN PRESSURE – Gross margin fell 320 basis points due to lower average selling prices and higher tariffs Key Details Metric Beat/Mis Actual Consensu s s Estimate Q1 Beat $11.72 $11 bln Revenue bln (22 Analysts ) Q1 EPS $0.49 Q1 Net Beat $727 mln $396.80 Income mln (19 Analysts ) Q1 Gross 42.2% Margin Q1 Gross $4.94 Profit bln Q1 $922 mln Pretax Profit Analyst Coverage * The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 20 "strong buy" or "buy", 17 "hold" and 2 "sell" or "strong sell" * The average consensus recommendation for the footwear peer group is "buy" * Wall Street's median 12-month price target for Nike Inc is $78.00, about 10.8% above its September 29 closing price of $69.55 * The stock recently traded at 36 times the next 12-month earnings vs. a P/E of 31 three months ago Press Release: (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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