Nike CFO Friend says ‘expect headwinds to revenue and gross margins moderating’

Says in Q1: “Revenues were up 1% on a reported basis and down 1% on a currency neutral basis. Nike (NKE) Direct was down 5%, with Nike Digital declining 12% and Nike stores down 1%. Wholesale grew 5%. Gross margins declined 320 basis points to 42.2% on a reported basis. Due to higher wholesale discounts, higher discounts in our Nike factory stores, increased product costs including new tariffs and channel mix headwinds… Our geographies are at different stages of progress against our win now actions and business recovery is trending on different timelines. Therefore, I will focus my geography remarks on the specific context and insights of our win now progress. In North America . Q1 revenue grew 4%. Nike Direct declined 3% with Nike Digital down 10% and Nike stores flat wholesale grew 11%. Ebit declined 7% on a reported basis. North America is building momentum through sustained brand activity across sport, leveraging our leading portfolio of sports marketing assets.”