Nike Continues ‘Relentless Pace,’ Lands Another Street Beat In Q1

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.”

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.

TOMS Sponsored By TOMS

Building Business to Improve Lives

TOMS discusses its approach to mental health awareness and female empowerment through impact initiatives in the footwear segment.
Learn More

Access exclusive content