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Nike Tops Q1 Estimates, Shares Jump

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Shares of Nike Inc (NYSE: NKE) jumped over 7 percent in after-hours trading after the company reported stronger-than-expected results for its fiscal first quarter.

The Beaverton, Oregon-based company posted quarterly net income of $1.18 billion, or $1.34 per share, compared to $962 million, or $1.09 per share, in the year-ago quarter.

Its revenue climbed 5 percent to $8.41 billion, while revenue surged 14 percent on a currency-neutral basis. Analysts were expecting earnings of $1.19 per share on revenue of $8.21 billion.

The average estimate among 99 Estimize users was for earnings of $1.21 per share and revenue of $8.28 billion.

Revenue for the NIKE Brand surged 15 percent on a currency-neutral basis to $7.9 billion, while revenue for Converse gained 3 percent on a currency-neutral basis to $555 million in the quarter.

The company's revenue in North America surged 8 percent in the quarter, while sales in the Greater China region jumped 30 percent.

Its gross margin widened 90 basis points to 47.5 percent. Selling and administrative expense rose 4 percent to $2.6 billion for the quarter.

At August 31, 2015, inventories totaled $4.4 billion, up 10 percent compared to August 31, 2014.

During the first quarter, the company repurchased a total of 5.5 million shares for around $588 million.

As of the end of the quarter, worldwide futures orders scheduled for delivery from September 2015 through January 2016 climbed 9 percent.

"Fiscal 2016 is off to a great start," said Mark Parker, President and CEO of NIKE, Inc. "Our relentless pace of growth is driven by our proven strategy of putting the consumer first, obsessing 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."

Nike shares surged 7.02 percent to $122.90 in the after-hours trading session.

Posted-In: profitEarnings News

 

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