NIKE on the call: Withdrawing FY25 guidance given CEO transition; to provide quarterly guidance for balance of the year
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Co's previous FY25 guidance:
- Expect reported revenue to be down mid single digits (reduced from initial outlook of positive growth).
- 1H25 down high single digits. Foreign exchange headwinds have worsened and will now have a 1 point translational impact on revenue in FY25.
- Expect gross margin expansion of approximately 10 to 30 basis points on a reported basis.
- Expect reported revenue to be down mid single digits (reduced from initial outlook of positive growth).
- Co also decided to postpone its Investor Day.
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Co added commentary regarding business trends:
- Revenue expectations moderated since start of the year; expect a similar impact and scale to Q1.
- See indications of slight second half improvement in revenue trends versus first half.
- Expect gross margin to decline versus the prior year due to incremental headwinds.
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Co provided Q2 guidance:
- Expects revenue to be down 8-10%, gross margins to be down approximately 150 bps.