Beating EPS, but Losing Ground: Nike’s March Through Margin Compression

7 months ago

LongYield

"NKE (earnings update) - $82 target (13% upside): Q3'25 revenue -9% to $11.3B, EPS $0.54 (-30% YoY but beat $0.29 est). Gross margin -330bps to 41.5% from markdowns, tariffs. Regional declines: China -15%, EMEA -6%, NA -4%. Digital -15%. 'Win Now' strategy impact expected Q4. 6/1 price hikes ($2-10) to offset new tariffs (56% weighted cost increase). Mid-teens Q4 revenue decline forecast."

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