Nike Inc - Class B

Nike delivered a stronger-than-expected fiscal third quarter, posting diluted EPS of $0.35 against a consensus estimate of $0.28, a 25.00% beat that marks the fourth consecutive quarter the sportswear giant has cleared Wall Street's earnings bar. Revenue came in at $11.28 billion, essentially flat year-over-year at +0.1%, though the headline stability masked underlying pressure; on a currency-neutral basis, sales fell 3%, and net income dropped 35% to $520.00 million as gross margin contracted 130 basis points to 40.2%, hammered by higher tariffs in North America and a surge in the effective tax rate to 20.0% from just 5.9% a year ago. The quarter also reflected Nike's intentional strategic pivot, with wholesale revenues climbing 5% to $6.50 billion while Nike Direct slipped 4% to $4.50 billion, underscoring the company's deliberate rebalancing toward retail partners under its "Win Now" framework. Adding a note of conviction to the results, CEO Elliott Hill recently purchased shares on the open market, signaling personal confidence in the turnaround. CFO Matthew Friend cautioned that tariff headwinds and restructuring actions will continue weighing on results through the remainder of the calendar year.