Nike has announced the withdrawal of its full-year guidance and the postponement of its scheduled investor day, as the company prepares for leadership changes.
The move comes as Nike gears up for the transition to a new CEO, Elliott Hill, who will replace outgoing CEO John Donahoe on October 14.
In a statement, Nike cited the CEO transition as the reason for pausing its full-year outlook. The company plans to offer quarterly guidance for the remainder of the fiscal year.
During an earnings call, Chief Financial Officer Matthew Friend explained that the decision would provide Hill with the flexibility to engage with employees, assess current strategies, and position the company for future growth, particularly beyond fiscal 2026.
Nike had previously revised its fiscal 2025 outlook in June, projecting a mid-single-digit decline in sales after earlier forecasting growth. The company has now postponed its investor day, originally scheduled for November, with no new date announced.
The sneaker giant reported earnings of 70 cents per share, surpassing the 52 cents per share expected. However, revenue came in at $11.59 billion, missing the forecast of $11.65 billion.
For the first fiscal quarter ending August 31, Nike's net income dropped to $1.05 billion, or 70 cents per share, down from $1.45 billion, or 94 cents per share, in the same period a year earlier. The company is working to address challenges with its product assortment and innovation strategy, which contributed to the revenue miss.
Sales declined by 10% year-on-year, from $12.94 billion to $11.59 billion. Despite this, Nike's gross margin increased by 1.2 percentage points, reaching 45.4%, surpassing the 44.4% expected by analysts. However, overall profits still fell by nearly 28% during the quarter.
Nike's shares tumbled 7% during extended trading.
