Nike (NYSE:NKE) revealed its second-quarter financial results, surpassing analysts’ predictions but cautioned about a less robust revenue forecast for the second half of the year as it aims to enhance operational efficiency and reduce expenses.

Shares of Nike experienced a decline, dropping up to 10% intra-day today following the earnings release.

The company reported earnings per share (EPS) of $1.03 and revenue totaling $13.4 billion. This exceeded the expectations of Wall Street analysts, who had forecasted an EPS of $0.84 on revenue of $13.39 billion.

This outperformance was attributed to improved margins, driven by strategic pricing decisions and reduced ocean freight costs. However, these gains were partially offset by unfavorable changes in foreign currency exchange rates and increased costs of product inputs. Looking forward, Nike signaled a weaker revenue projection for the latter half of the year, emphasizing its commitment to maintaining strong gross margins and strict cost control.

During the earnings call, the management revised its full-year revenue growth expectation to approximately 1%, a decrease from the previously anticipated mid-single-digit growth. This revision falls short of the consensus forecast, which anticipated a 4% growth.

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