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5 Insightful Analyst Questions From Nike’s Q4 Earnings Call
Nike’s fourth quarter saw flat year-on-year sales and a significant operating margin decline, which led to a sharp negative market reaction. Management linked these results to ongoing efforts to reset its classics business, promote new product lines, and address regional weaknesses, notably in China. CEO Elliott Hill described the company as being in the "middle innings" of a turnaround, acknowledging that while North America performed well, other regions lagged behind. CFO Matt Friend cited higher tariffs and inventory clean-up, especially in Greater China, as major contributors to the margin pressure.
Is now the time to buy NKE? Find out in our full research report (it’s free for active Edge members).
Nike (NKE) Q4 CY2025 Highlights:
- Revenue: $12.43 billion vs analyst estimates of $12.22 billion (flat year on year, 1.7% beat)
- Adjusted EPS: $0.53 vs analyst estimates of $0.38 (41.3% beat)
- Adjusted EBITDA: $1.20 billion vs analyst estimates of $917.3 million (9.6% margin, 30.3% beat)
- Operating Margin: 8.1%, down from 11.2% in the same quarter last year
- Constant Currency Revenue was flat year on year (-9% in the same quarter last year)
- Same-Store Sales fell 3% year on year (-2% in the same quarter last year)
- Market Capitalization: $88.69 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Nike’s Q4 Earnings Call
- Matthew Boss (JPMorgan): Asked where momentum has been established versus areas still lagging. CEO Elliott Hill emphasized progress in North America and running, but acknowledged the turnaround is uneven across regions and categories.
- Ike Boruchow (Wells Fargo): Questioned when Nike might achieve more consistent visibility and shed the "in transition" label. Hill explained that different brands and geographies are on varied timelines, making a uniform recovery unlikely in the near term.
- Bob Drbul (BTIG): Inquired about the timeline for returning to double-digit EBIT margins and the depth of the China reset. CFO Matt Friend highlighted structural headwinds from tariffs and operational actions, while Hill detailed steps being taken to rebuild Nike’s premium position in China.
- Aneesha Sherman (Bernstein): Asked which categories beyond running could see rapid growth. Hill pointed to football, basketball, and training apparel as having promising innovation pipelines, while also mentioning the expansion of SKIMS and recent product launches.
- Simeon Siegel (Guggenheim Securities): Sought clarity on the drivers of North America’s growth and whether wholesale gains would improve cost leverage. Hill credited performance categories and cleaner inventory, while Friend discussed how wholesale expansion could aid operating efficiency.
Catalysts in Upcoming Quarters
In the next few quarters, our analysts will be closely monitoring (1) the pace of recovery in Greater China following the marketplace reset, (2) sustained momentum in North America’s performance categories and wholesale channels, and (3) whether margin pressures from tariffs and product mix shifts begin to ease. Progress on new product launches and the effectiveness of leadership changes will also be critical for assessing Nike’s trajectory.
Nike currently trades at $60.05, down from $65.90 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free for active Edge members).
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