Overview
- Nike, which cut its sales outlook Tuesday, saw shares drop about 9% in after-hours trading following the warning.
- The company reported last quarter’s revenue at about $11.3 billion with net income down roughly 35% to $520 million.
- Greater China weakened further as sales fell about 10% year over year, and Nike plans an intentional 20% decline next quarter to clear excess inventory.
- Higher import tariffs squeezed gross margin to 40.2% last quarter and the company expects it to dip below 40% next quarter, with relief projected after early fiscal 2027.
- Executives cautioned that the Iran war could trigger unplanned swings in costs or consumer demand, adding risk to the near-term recovery.