NKE: Nike Stock Wipes Out 9% Post-Earnings Pop After New CEO Fans Profit Concerns

Giant retailer delivered a beat on both earnings and revenue but Elliott Hill wasn’t in a mood to celebrate. Shares slipped under the flatline.

• Nike stock NKE pulled a head-spinning move late Thursday-early Friday before the opening bell in New York. The sportswear retailer popped as much as 9% immediately after the release of its earnings data. Turns out, the turnaround plan of the new CEO, Elliott Hill, might just as well be panning out nicely. But those market gains didn’t last long as impatient traders didn’t get the greenlight from the CEO.
• Earnings per share for the fiscal second quarter of 2025 arrived at 78 cents against 63 cents expected. Revenue for the quarter, ended November 30, came in at $12.35 billion against $12.13 billion expected. Net income landed at $1.16 billion against the year-ago quarter’s $1.58 billion. All in all, Nike did well and surprised investors who were happy to see Hill breaking in his new shoes as boss. But Hill wasn’t there to celebrate. Instead, he set his sight a bit too far in the future.
• “We’re taking the long-term view here,” the CEO said as he emphasized Nike needed to focus less on promotions and more on profitability. “We’re making the decisions that are best for the health of our brand and business, decisions that will drive shareholder value.” “ going to take time, but I am confident that we are making the right moves and the right shifts to drive this brand, this business, forward,” Hill said. Nike shares were down 3.5% ahead of the bell today.