Nike reported quarterly profit above Wall Street expectations on Tuesday, helped by stronger wholesale revenue, sending shares up 3% in after-hours trading.
The company posted first-quarter earnings of 49 cents per share, topping analysts’ estimates of 27 cents.
Revenue rose 1% to $11.7 billion, roughly in line with market expectations.
Wholesale revenue grew 7% to $6.8 billion as retailers restocked ahead of key sports releases, while Nike Direct sales, which include its own stores and online channels, fell 4% amid weaker digital demand.
Sales in the namesake Nike brand rose 2%, driven by North America, while Greater China declined. Converse revenue fell 27%.
Gross margin fell 320 basis points to 42.2% due to higher discounts and tariffs, while net income declined 31% to $700 million.
“This quarter Nike drove progress through our Win Now actions in our priority areas of North America, Wholesale, and Running,” CEO Elliott Hill said.
The company still faced uneven recovery across regions and categories, Hill added.
CFO Matthew Friend said external headwinds would continue to weigh on results and said cost discipline remained a focus.
Source :
https://www.investing.com/news/earnings/nike-shares-up-after-q1-profit-beat-4264599
