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Nike has withdrawn its full-year guidance after first quarter sales plunged, and ahead of Elliot Hill becoming president and CEO of the group later this month. The company also cancelled an investor day that was set to take place next month.
It comes as first quarter revenue fell by 10% to $11.6bn (£8.7bn), with Nike Direct revenues down by 13% to $4.7bn, and wholesale revenues down by 8% to $6.4bn (£4.8bn).
Meanwhile, Nike Brand revenues were $11.1bn (£8.3bn), down 10% on a reported basis amid declines across all geographies over the period.
In addition, net income plummeted 28% to $1.1bn (£827m), while diluted earnings per share was $0.70, a decrease of 26%.
Gross margin increased 120 basis points to 45.4%, due to lower product costs, lower warehousing and logistics costs, and strategic pricing actions from the prior year.
Their latest results and withdrawn full-year guidance comes as Elliot Hill is set to return to the group, having previously left in 2020. He will assume the role on 14 October, 2024.
Last month, the sports retail giant revealed its board and current CEO and president John Donahoe decided he will retire from his role and from its board. He will remain as an advisor to the company to ensure a smooth transition through 31 January, 2025.
Throughout the course of his career at Nike, Hill held senior leadership positions across Europe and North America and was responsible for helping grow the business to more than $39bn (£29.3bn). Before retiring in 2020, he was president – Consumer and Marketplace leading all commercial and marketing operations for Nike and Jordan Brand, including the P&L across the company’s four geographies.
Matthew Friend, executive vice president and CFO, Nike, Inc said: “Nike’s first quarter results largely met our expectations. A comeback at this scale takes time, but we see early wins — from momentum in key sports to accelerating our pace of newness and innovation. Our teams are energised as Elliott Hill returns to lead Nike’s next stage of growth.”
