After negative Q2, Nike's new CEO hints at turnaround plan

Nike’s second quarter revenues were 12.4 billion dollars, down 8 percent on a reported basis and down 9 percent on a currency-neutral basis compared to the prior year.

Gross margin for the quarter decreased 100 basis points to 43.6 percent, while net income was 1.2 billion dollars, down 26 percent, and diluted earnings per share were 78 cents, a decrease of 24 percent.

Commenting on the second quarter results, Elliott Hill, president & CEO, Nike, Inc. said: "We're taking immediate action to reposition our business, so we can get back to driving long-term shareholder value."

Nike brand revenues of 12 billion dollars, were down 7 percent on a reported basis and down 8 percent on a currency-neutral basis, driven by declines across all geographies.

The company said in a statement that Nike direct revenues were 5 billion dollars, down 13 percent on a reported basis and down 14 percent on a currency-neutral basis due to a 21 percent decrease in Nike brand digital and a 2 percent decrease in Nike-owned stores.

Wholesale revenues of 6.9 billion dollars, were down 3 percent on a reported basis and down 4 percent on a currency-neutral basis.

Revenues for Converse were 429 million dollars, down 17 percent on a reported basis and down 18 percent on a currency-neutral basis, due to declines across all territories.

In the second quarter, Nike returned approximately 1.6 billion dollars to shareholders, including dividends of 557 million dollars, up 7 percent from the prior year.