Nike Gross Margin Tops Forecast as Jordan One, Dunks Sales Slide Over Two Years
Nike’s latest gross margin topped expectations while revenues and earnings remained flat as investors await Greater China inventory updates. Since Elliott Hill took charge in October 2024, Jordan One and Dunks have slumped over 18–24 months, while new product gains and the SKIMS tie-up have delivered scant margin boost.
1. Quarterly Results
Nike’s latest quarter delivered gross margin above expectations while revenues and earnings remained stable. Inventory reductions are ongoing with Greater China stock normalization targeted by mid-calendar year.
2. CEO Turnaround Strategy
Elliott Hill, in place since October 2024, has prioritized margin expansion and inventory control, though earnings and overall gross margins have declined compared to pre-turnaround levels. Revenue stability has masked slower progress toward full financial recovery.
3. Product Mix Challenges and Collaborations
Core franchises such as Jordan One and Dunks have slumped over 18–24 months, offsetting gains from new product launches. The SKIMS collaboration generated publicity but has contributed only a small uplift to overall margins.