Shares of the Footwear and athletic apparel giant Nike (NYSE: NKE) jumped almost 10% in extended trading to $98 on Thursday after the company beat first-quarter earnings and gross margin estimates. Nike’s earnings per share came in much better than expected at $0.94, which beat consensus estimates of $0.76.
Earnings per share: $0.94 vs. $0.75 expected
Revenue: $12.94 billion vs. $12.99 billion expected
The company posted total revenue of $12.94 billion in the quarter, missing Wall Street’s expectations of $12.99 billion. However, the company expects second-quarter revenue growth to increase slightly compared to last year. Sales in China improved 5% year-over-year to $1.74 billion while in Nike’s home market of North America, revenue fell 2% and was just below expectations. Revenues for Converse were $588 million, down 9 percent on a reported and currency-neutral basis, due to a decline in North America, partially offset by growth in Asia.
“Q1 offered proof of what NIKE can deliver when we connect great innovation, great storytelling and great marketplace experiences to consumers,” Nike CEO John Donahoe said.
"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." – Nike CFO, Matthew Friend said.
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