After Nike Inc. (NYSE: NKE) reported its fiscal first-quarter financial results late on Tuesday, the investor reaction Wednesday practically wiped out all of Nike’s gains so far this year. It doesn’t seem like the sports apparel field is getting any easier for the swoosh.
The sports apparel giant said that it had $0.57 in earnings per share (EPS) and $9.07 billion in revenue, compared with consensus estimates from Thomson Reuters of $0.48 in EPS and revenue of $9.09 billion. In the same period of last year, Nike posted EPS of $0.73 and $9.06 billion in revenue.
The company announced in mid-June that a new company alignment was created as a result of the Consumer Direct Offense, which simplified Nike Brand’s structure from six geographies to four, consisting of North America; Europe, Middle East & Africa (EMEA); Greater China; and Asia Pacific & Latin America (APLA).
During the quarter, revenues for the Nike Brand were $8.6 billion, up 2% on a currency-neutral basis driven by growth in Greater China, EMEA and APLA, including growth in Sportswear. At the same time, revenues for Converse were $483 million, down 16% on a currency-neutral basis, mainly driven by declines in North America.
In terms of its segments, Nike reported:
- Global Footwear totaled $5.49 billion.
- Global Apparel was $2.65 billion.
- Global Equipment was $420 million.
On the books, Nike cash, cash equivalents, and short-term investments totaled $5.52 billion at the end of the quarter, compared with $4.79 billion at the end of the same period last year.
Mark Parker, Nike’s board chair, president and CEO, commented:
This quarter, we captured near-term opportunities through our new Consumer Direct Offense. Looking ahead to the rest of fiscal 2018, we will ignite NIKE’s next horizon of global growth through the strength of our brand, the power of our innovative products and the most personal, digitally-connected experiences in our industry.
Shares of Nike were last seen down about 4% at $51.60, with a consensus analyst price target of $60.40 and a 52-week trading range of $49.01 to $60.53.
Take This Retirement Quiz To Get Matched With A Financial Advisor (Sponsored)
Take the quiz below to get matched with a financial advisor today.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the
advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Take the retirement quiz right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
