Nike shares fall due to tax office incompetence, warning

Key takeaways

Nike shares fell in extended trading Thursday after the company reported fourth-quarter revenue that was below analyst estimates and said it would update its fiscal 2025 guidance.
Revenue decreased compared to the same period last year and was below expectations, while net income increased and exceeded estimates.
Nike CEO John Donahoe said the company is facing “near-term challenges.”

Nike (NKE) reported fourth-quarter revenue that missed analyst estimates and said the results prompted the company to update its fiscal 2025 guidance, sending its shares lower in extended trading on Thursday.

The company reported revenue of $12.6 billion for the fourth fiscal quarter of 2024, down 2% from the year-ago period and below analyst expectations, according to estimates compiled by Visible Alpha.

Net income was $1.5 billion, or 99 cents per share, up $1.03 billion, or 66 cents per share, from the year-ago period and above analyst forecasts.

	Q4 2023	Analyst estimates for Q4 2024	Q4 2023
Income	$12.6 billion	$12.88 billion	$12.83 billion
Diluted earnings per share	99 cents	84 cents	66 cents
Net income	$1.5 billion	$1.27 billion	$1.03 billion

Nike CEO John Donahoe said the company is “embracing near-term challenges head on while making continued progress in the areas that matter most to NIKE’s future — serving athletes through performance innovation, keeping pace with consumers and evolving the end-to-end NIKE offering to the market.”

Donahoe added, “I am confident that our teams are leveraging our competitive advantages to make a greater impact on our business.”

CFO Matthew Friend said that “fourth-quarter results highlighted challenges that led us to update our fiscal 2025 guidance.” The company did not provide specific numbers on changes in the earnings report.

Friend said the company is “taking steps to reposition NIKE to become more competitive and drive sustainable, profitable long-term growth.”

Nike shares fell more than 6% in extended trading to $87.90 as of 5:20 p.m. ET on Wednesday after publication.