Nike reports revenue and earnings growth in Q1

For its first quarter, Nike, Inc. reported revenues of 12.9 billion dollars, up 2 percent compared to prior year on a reported and currency-neutral basis.

Gross margin for the quarter decreased 10 basis points to 44.2 percent and net income was 1.5 billion dollars, down 1 percent, while diluted earnings per share rose 1 percent to 94 cents.

“Q1 offered proof of what Nike can deliver when we connect great innovation, great storytelling and great marketplace experiences to consumers,” said John Donahoe, president & CEO, Nike, Inc. in a statement.

Nike Direct revenues were 5.4 billion dollars, up 6 percent on a reported and currency-neutral basis with growth across all geographies, while Nike brand digital sales increased 2 percent on a reported and currency-neutral basis.

Strengthening foundation for long-term growth

Wholesale revenues were 7 billion dollars, flat compared to prior year on a reported basis and up 1 percent on a currency-neutral basis.

Revenues for the Nike brand were 12.4 billion dollars, up 3 percent on a reported and currency-neutral basis, led by currency-neutral growth in EMEA, Greater China and APLA, partially offset by a decline in North America.

Revenues for Converse were 588 million dollars, down 9 percent on a reported and currency-neutral basis, due to a decline in North America, partially offset by growth in Asia.

“Our first-quarter results demonstrated the impact of staying on the offense over the past fiscal year. With a healthy marketplace and another quarter of brand and business momentum, we are strengthening our foundation for sustainable, profitable, long-term growth,” added Matthew Friend, executive vice president & CFO, Nike.

In the first quarter, Nike returned approximately 1.7 billion dollars to shareholders, including dividends of 524 million dollars, up 9 percent from the prior year.