Nike's Q1 earnings jump 28 percent
By Prachi Singh
25 Sep 2019
For its first quarter to August 31, 2019, Nike, Inc. said, revenue increased to 10.7 billion dollars, up 7 percent on a reported basis and 10 percent on a currency-neutral basis, driven by growth across all geographies. The company added that diluted earnings per share for the quarter were 86 cents, an increase of 28 percent driven primarily by strong revenue growth and gross margin expansion.
“Our strong start to FY20 highlighted the depth and balance of Nike’s complete offense,” said Mark Parker, Chairman, President and CEO, of Nike in a statement, adding, “NIKE’s strong product innovation, combined with our industry-leading digital experiences, continue to deepen our consumer relationships around the world.”
Review of Nike’s first quarter income statement
The company said, revenues for the Nike brand were 10.1 billion dollars, up 10 percent on a currency-neutral basis driven by growth across Nike Direct and wholesale, key categories including sportswear and the Jordan brand, and continued growth across footwear and apparel.
Revenues for Converse were 555 million dollars, up 8 percent on a currency-neutral basis, mainly driven by double-digit growth in Asia and through digital globally, which was partially offset by declines in the US.
Gross margin increased 150 basis points to 45.7 percent. Net income increased 25 percent to 1.4 billion dollars driven primarily by strong revenue growth and gross margin expansion while diluted earnings per share increased 28 percent to 86 cents reflecting a 2 percent decline in the weighted average diluted common shares outstanding.