Nike Shares Fall Despite Earnings Beat as CEO Predicts Revenue Decline

Nike's results beat modest estimates on Thursday and its shares jumped briefly, but the company soon dashed investor hopes and sent shares lower when a top executive predicted revenues would fall by double digits in the third quarter for its brands. Shares of Nike surged 11% immediately after the earnings report but gave up those gains after Hill and CFO Matthew Friend reined in expectations.

Hill said in his first earnings call since taking the helm in October that Nike “lost its obsession with sport,” vowing to right the ship by refocusing its business on sport and selling more items at premium prices.Nike dashed investor hopes and sent shares lower when the company predicted revenues would fall by double digits in the third quarter.Nike’s quarterly profit beat modest expectations. Revenue also fell less than expected as newer versions of performance and running shoes attracted shoppers. So far this year, Nike shares have slumped nearly 30%. Analysts said Hill faces tough critics and a long slog to claw back lost market. Employee allegedly stabs company boss in middle of meeting in possible 'copycat' crime in wake of UnitedHealthcare CEO killingForeign tech workers on visas warned to return to US before Trump takes office Hill told the call he was prioritizing rebuilding Nike’s retail partnerships, boosting innovation and ensuring discounts and promotions are limited to traditional retail moments, and not at the consistent rates at which they have been employed lately. “We’ve become far too promotional,” Hill said, speaking in lively, impassioned tones. “The level of markdowns not only impacts our brand but disrupts the overall marketplace and the profits of our partners.” With rivals launching more comfortable, better cushioned shoes, Nike has been scrambling to regain dominance in the market, shelling out money to introduce new products like Air Max 95, and to promote staple franchises like Jordans and Pegasu

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