NIKE, Inc. (NIKE) is the world’s top designer, marketer, and distributor of athletic footwear, equipment, apparel, and accessories. The Beaverton, Oregon based company offers products for a wide variety of sports and fitness activities.
Nike reported its quarterly earnings for the first quarter ending Aug. 31 on Tuesday, beating analyst estimates. An increase in online sales by 42% boosted by stronger e-commerce sales and product innovation led to a stronger quarter as informed by CEO Mark Parker. Key highlights from the report:
- The company reported EPS of 86 cents, surpassing the expectation at 70 cents.
- Net income of $1.37 billion was reported from $1.09 billion, a year ago.
- Revenue was up 7.2% to $10.66 billion beating expectation at $10.44 billion.
- Sales in North America were reported to be up by 4%, while sales soared by 27% in Greater China depicting the company’s strong foot in the Chinese market despite trade woes.
- Gross margins grew to 45.7% as items were sold at full price. The initiative which is a part of the company’s “Nike Direct,” strategy focussed more on selling goods in its own stores and website rather on discounted outlets.
- Sales at Converse rose by 8%.
The sports giant expects single-digit revenue growth for the year. Shares of the company rose more than 5.5% in after-hours trading after the results were declared. To learn more about NIKE, Inc. (NIKE) and to continue to track its progress please visit the Vista Partners NIKE Coverage Page.
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