Catenaa, Wednesday, October 01, 2025– Nike stock rose over 5% on Wednesday after reporting its fiscal first-quarter results beat expectations as the sneaker giant navigates a major turnaround strategy under CEO Elliott Hill.
The company reported adjusted earnings per share of $0.49 compared to Wall Street analyst estimates for $0.28, according to data from Bloomberg.
Revenue increased 1% year over year to $11.7. billion, higher than $11.02 billion that was expected. Revenue fell 1% over the prior year when adjusted for currency impacts.
Nike stock rose by 5.5% on Wednesday morning, but the stock is still down by over 3% so far in the year.
Revenue for its direct-to-consumer business, Nike Direct, decreased 4% to $4.5 billion, compared to an expected drop of 8.3% from a year ago to $4.3 billion. It does not expect to see growth in the segment this fiscal year.
Its namesake Nike brand saw sales grow 2% to 11.4 billion. Analysts had expected a 5% decline from a year ago to $10.6 billion.
Sales at Converse, which Hill said is in the “early stages of a global market reset,” fell far more than expected, dropping 27% to $366 million. The Street forecast a decline of roughly 9% to $456.1 million.
Nike’s gross margins decreased 320 basis points to 42.2% in the quarter.
Nike CFO Matthew Friend said the company expects an approximately $1.5 billion impact from President Trump’s tariffs, up from $1 billion shared last quarter. Since the last quarter, tariffs on countries like Vietnam, Cambodia, and Indonesia have increased to 46%, 19%, and 19%, respectively.
Nike expects tariffs to hit gross margin by 120 basis points, up from 75 basis points, for fiscal year 2026.
The company said its plans to mitigate costs haven’t changed since last quarter. It aims to reduce reliance on China for manufacturing goods sold in the US and implement a “surgical price increase” in the US market this fall.
Nike expects second-quarter revenue to be down by low single digits. Gross margins are expected to be approximately 300 to 375 basis points lower, including an impact of 175 basis points from the incremental tariffs.
