Overview

• Revenue rose 1% to $11.72 billion and EPS came in at $0.49, topping estimates, while gross margin fell 320 basis points to 42.2%.
• North America returned to growth at up 4% as Greater China declined about 9% to 10%, with Nike Direct down 4% including a 12% drop in digital, and wholesale up 7%.
• Executives raised the annual tariff cost estimate to about $1.5 billion and cited a roughly 120-basis-point gross margin headwind for the fiscal year.
• Inventory decreased 2% to $8.1 billion as the company continued to clean up aged product and balance channels.
• Guidance calls for second-quarter revenue down in the low single digits and gross margin lower by 300 to 375 basis points, even as running posted strong gains and spring orders improved.