Nike beats Q4 earnings estimates while revenue lags

Sportswear titan Nike (NKE) is out with its fiscal fourth quarter results in Tuesday's after-hours trading, reporting earnings of $0.72 per share (vs. estimates of $0.14) and $10.97 billion in revenue (vs. estimates of $11.1 billion).

Market Domination Overtime Host Josh Lipton dives into Nike's latest earnings release.

Video Transcript

00:00 Speaker A

Nike's fourth quarter earnings are just now crossing the wire. Let's get you those results. It looks like earnings per share clock in at 72 cents. Uh per Bloomberg that does beat consensus. Uh it looks like due to expected tariff-related refunds there. Top line sales 11 billion in the company's fiscal Q4. That also per Bloomberg does beat consensus estimates. Just looking through other segments here. Uh it looks like Q4 greater China

00:26 Speaker A

interest before uh earnings before interest and taxes there. It looks like that clocks in at uh 243 million. Uh Q4 gross margins 49.2%. Uh Q4 inventory 7.5 billion. The stock not doing much here in the after hours, at least initially. Um remember expectations were low heading into this print. The stock was down 35% this year heading into this report. We're down about 75% over the past five years. There are analysts who argue Nike's making the right moves. They'll talk about how they've cleaned up inventory,

00:56 Speaker A

uh rebalancing the product portfolio, strengthening the relationships with the wholesale partners. They will also say though the turnaround is is happening at a at a slow pace and there is more work to be done here. There's also comments um from Nike execs, including the CEO Elliot Hill. He's saying here in fiscal '26 we took decisive actions to strengthen the foundation of Nike. Uh talks about reposition our business for long-term growth. Uh says we do continue to face top line headwinds, but they says we're encouraged by progress in performance product and focused on consistent execution, improved profitability, and scaling our wins to realize our full potential. Again, and at least initially here, stock's popping about 2% in the after hours.

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