Nike Jumps 18% After Q4 Beat and Signs Turnaround Headwinds Are Easing

Shares of Nike (NYSE:NKE) surged over 18% intra-day today after the athletic giant reported fiscal fourth-quarter results that exceeded expectations and signaled that the worst financial impact from its turnaround plan is likely behind it.

Nike posted Q4 sales of $11.10 billion, down 12% year-over-year but better than analysts anticipated, helped by signs of stabilization in its core running category. North American sales dropped 11% to $4.7 billion, a decline that was milder than feared.

Earnings per share were $0.14, topping the consensus estimate of $0.12. CEO Elliott Hill’s upbeat remarks during the earnings call—highlighting that the business is poised to improve from here—fueled investor optimism. “It’s time to turn the page,” Hill declared.

Executives also outlined plans to shift more production from China to the U.S., aiming to mitigate potential cost increases from broad U.S. tariffs.

Looking ahead, Nike guided for first-quarter revenue to decline by a mid-single-digit percentage, a forecast more positive than analyst expectations for a 7.3% drop. Management noted that Q4 marked the peak of financial drag from its turnaround initiatives, and they anticipate these headwinds to ease going forward.