Nike Inc. today reported first-quarter profits that were better than expected, while its revenues were in line with predictions.
Still, the company — whose recent batch of softening U.S. sales have worried investors with stakes in the athletic retail market — said its sustained revenue growth in international geographies was offset by an expected decline in North America wholesale revenues.
Overall, revenues remained flat year-over year at $9.1 billion, which analysts had predicted. Meanwhile, profits tumbled 24 percent to $950 million, or 57 cents per diluted share, a decline Nike said was driven by a gross margin decline, a higher effective tax rate and higher “other” expenses.
“This quarter, we captured near-term opportunities through our new Consumer Direct Offense,” said chairman, president and CEO Mark Parker. “Looking ahead to the rest of fiscal 2018, we will ignite Nike’s next horizon of global growth through the strength of our brand, the power of our innovative products and the most personal, digitally connected experiences in our industry.”
Watch on FN
During the quarter, revenues for the Nike brand were $8.6 billion, up 2 percent on a currency-neutral basis driven by growth in Greater China; Europe, the Middle East and Africa; and Asia-Pacific and Latin America.
Revenues for Converse were $483 million, down 16 percent on a currency-neutral basis, also driven predominantly by declines in North America.
As of 4:50 p.m. ET, Nike shares were down nearly 1.7 percent to $52.70 in after-hours trading.