Nike Inc.’s dominion over the athletic-footwear space continues.
Despite currency pressures and economic volatility in China, one of its biggest markets, the Beaverton, Ore.-based athletic-footwear-and-apparel giant pulled off another solid quarter, with gains in revenue and profits.
The firm’s surging earnings and revenues — led by currency-neutral sales growth of 15 percent at Nike Brand — significantly surpassed Wall Street’s estimates for the first quarter, a historically top-performing period for Nike.
Nike shares are soaring in after-hours trading, up more than 7 percent at press time, on the momentum of the better-than-expected performance.
“Fiscal 2016 is off to a great start,” said Mark Parker, Nike’s president and CEO, in a release. “Our relentless pace of growth is driven by our proven strategy of putting the consumer first, obsessing over innovation in everything we do and leveraging our powerful portfolio. We’re well-positioned to continue to deliver long-term growth that is both sustainable and profitable.”
Watch on FN
Net Income: Net income for the first quarter, ending Aug. 31, 2015, rose 23 percent year-over-year, to $1.2 billion, from the comparable quarter’s $962 million.
EPS: Earnings per diluted share also climbed, by 23 percent year-over-year, to $1.34, from the comparable quarter’s diluted EPS of $1.09.
Net Revenue: Total revenues increased 5 percent year-over-year, to $8.4 billion, compared with the year-ago quarter’s revenues of $8 billion. Revenues grew 14 percent, excluding currency changes, the company said. Nike brand saw the largest sales growth, of 15 percent, to $7.9 billion.
Hit, Miss or Beat: Nike beat Wall Street’s estimates for both revenues and diluted EPS. Analysts polled by Yahoo Finance had predicted diluted EPS of $1.19 and revenues of $8.2 billion.