Shares of Nike Inc. surged 15 percent on Friday, as investors embraced the company’s upbeat outlook and strategic “Win Now” plan, despite a steep drop in both quarterly and full-year earnings for the period ending May 31.
After Thursday’s market close, Nike reported fourth-quarter revenue of USD 11.1 billion—a 12 percent decline—and net income plunged a further 86 percent to USD 211 million. For the full year, revenue fell 10 percent to USD 46.2 billion, and net income dropped 44 percent to USD 3.2 billion.
But these worrisome numbers didn’t deter Wall Street. Nike’s results outperformed cautious analyst expectations, and investors responded favorably to the company’s momentum—particularly improvements tied to its “Win Now” strategy. This plan is already paying dividends in the fourth quarter, executives claimed, bolstering investor confidence heading into the next fiscal year.
“While our financial results are in line with our expectations, they are not where we want them to be,” said Nike chief executive officer Elliott Hill. “Moving forward, we expect our business to improve as a result of the progress we’re making through our Win Now actions. … As we enter a new fiscal year, we are turning the page and aligning our teams to lead with sport through what we are calling the sport offense.”
The shift will focus on sharpening product differentiation, inspiring marketing, and elevating consumer engagement across the global marketplace.
Nike chief financial officer Matthew Friend said the fourth quarter numbers “reflected the largest financial impact from our Win Now actions, and we expect the headwinds to moderate from here. I am confident in our ability to navigate through this current dynamic and uncertain environment by focusing on what we can control,” he dded.
Nike also revealed plans to reduce its supply-chain risk by relocating some manufacturing out of China, and cutting footwear imports from the Asian giant, which still account for 16 percent of its volumes as of May.
