Nike Inc (NYSE: NKE) reported a steady quarterly growth in the first quarter of its fiscal year on Tuesday, owed in part to strong online sales.
The athletic clothing and gear maker beat Wall Street forecasts on both the top and bottom lines, sending its shares up more than 5% to $91.98 in after-hours trading session.
Nike saw sales surge 22% to $1.68 billion in its Greater China market, where the ongoing U.S.-China trade issues continue to be the biggest concern for many companies. CEO Mark Parker said during a call with analysts that the company recorded a 42% rise in digital sales during the quarter.
The Oregon-based company has been making investments aimed at selling more of its products directly to consumers and less through wholesalers. That gives it an edge over competitors such as Under Armour (NYSE: UAA) and Adidas.
NKE Earnings & Outlook
Nike had net income of $1.37 billion, or $0.86 per share in the three months to August 31, up 25% from $1.09 billion, or $0.67 per share in the same period last year.
On average, analysts surveyed by Refinitiv were expecting the company to post adjusted net income of $1.1 billion, or $0.70 per share.
Revenue came in at $10.66 billion, representing a 7.2% increase from $9.95 billion in the earlier-year period. Analysts had forecast revenue of $10.44 billion, according to data compiled by Refinitiv.
Total sales in its North America market, excluding fluctuations in currency rates, climbed 4% to $4.29 billion.
NIKE Executive Comments
“Our strong start to FY20 highlighted the depth and balance of NIKE’s complete offense,” said Mark Parker, Chairman, President and CEO, NIKE, Inc. “NIKE’s strong product innovation, combined with our industry-leading digital experiences, continue to deepen our consumer relationships around the world.”
“Our targeted strategic investments are accelerating NIKE’s digital transformation and extending our competitive advantage.” said Andy Campion, Executive Vice President and Chief Financial Officer, NIKE, Inc. “Even amidst the increasingly volatile macroeconomic and geopolitical environment, we expect our unrelenting focus on better serving the consumer to continue fueling strong, broad-based growth across our global portfolio.”
Nike Inc Profile
Nike is the largest athletic footwear and apparel brand in the world. It designs, develops, and markets athletic apparel, footwear, equipment, and accessories in six major categories: running, basketball, soccer, training, sportswear, and Jordan Brand. Footwear generates about two thirds of its sales.
Nike’s brands include Nike, Jordan, Converse (casual footwear), and Hurley (action sports). Nike sells products worldwide and outsources its production to more than 400 factories in more than 40 countries. Nike was founded in 1964 is based in Beaverton, Oregon. – Warrior Trading News
