Nike is back on track.
The sportswear giant today posted earnings for its fiscal first quarter ended Aug. 31, noting revenues that increased 7% to $10.66 billion — ahead of Wall Street’s predicted $10.43 billion.
Diluted earnings per share were 86 cents, a 28% gain from the last year and above analysts’ expectations of 71 cents a share, while profits rose 25% to $1.4 billion.
“Our strong start to the fiscal year highlighted the depth and balance of Nike’s complete offense,” said Chairman, President and CEO Mark Parker in a statement. “Nike’s strong product innovation, combined with our industry-leading digital experiences, continue to deepen our consumer relationships around the world.”
Revenues for the Swoosh’s flagship brand climbed 10% to $10.1 billion, driven by growth in the Nike Direct and wholesale channels, as well as Jordan Brand, plus continued growth across footwear and apparel merchandise.
Watch on FN
Converse also saw a sales boost of 8% to $555 million, though its double-digit gains in Asia were offset by a decline in its home base of the United States.
“Our targeted strategic investments are accelerating Nike’s digital transformation and extending our competitive advantage,” said EVP and CFO Andy Campion in the statement. “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.”
However, Nike’s stock closed the trading day down 0.38% to $87.17 — signaling investor worries over the brand’s ability to weather trade war headwinds and heavy competition from athletic rivals Adidas and Lululemon.
As it comes to terms with President Donald Trump’s additional tariffs on Chinese imports, the Beaverton, Ore.-based business has shifted production to other regions, with about 20% of its output now produced in China.
As Nike Prepares Q1 Earnings, Here’s What Investors Are Watching
Nike Announces Sweeping Initiatives to Combat Climate Change