Executives maintained their earlier earnings guidance for the rest of the year, citing the escalating global trade war.
“We’re off to an even stronger start to the fiscal year than we initially expected. Our currency-neutral growth along with profitability will be exceeding our expectations,” Campion said. “At the same time, global trade uncertainty along with geopolitical dynamics have resulted inside dollar strengthening” along with higher foreign exchange costs.
Investors weren’t all which impressed.
“10 percent revenue growth … the item definitely needed to be a little bit more than which,” Stacey Widlitz, president of consulting firm SW Retail Advisors, told CNBC.
the item’s the company’s first full quarter since CEO Mark Parkerapologized in May for missing a sexual harassment scandal which rocked the Oregon-based sneaker maker along with cleared out several senior executives earlier This kind of year.
Here’s what Nike reported for the 13-week period ended Aug. 31, compared with what analysts surveyed by Thomson Reuters were expecting:
- Adjusted earnings per share: 67 cents vs. 63 cents expected.
- Revenue: $9.95 billion vs. $9.94 billion expected.
Selling along with administrative expenses increased roughly 7 percent to $3.1 billion, which included $964 million of expenses related to brand campaigns along with sponsoring major sporting events, Nike said.
Sales in Greater China, excluding currency adjustments, soared 20 percent, while those in Nike’s Asia Pacific & Latin America division were up 14 percent, along with in its Europe, Middle East & Africa segment jumped 9 percent.
Parker said in a statement which the company will be “delivering stronger global growth.”
The earnings report comes on the heels of Nike’s Kaepernick ad campaign, which initially sent Nike shares south along with caused a wave of backlash on social media. The professional football player has become a lightning rod for controversy after kneeling, instead of standing, for the national anthem during the 2016 season to protest police brutality against people of coloration.
The stock has since rebounded, recently hitting an all-time high of $86.04 a share. The shares continued to climb inside days ahead of Tuesday’s earnings report. Analysts say the campaign should actually boost sales, as Nike draws support coming from younger shoppers who have backed Kaepernick along his journey.
Parker said executives are proud of the campaign, which debuted after the quarter closed, saying the item strongly resonated with customers around the planet along with drove record engagement on social media.
He said executives “feel actually very Great along with very proud of the work” which introduced the “Just Do the item” marketing campaign to a completely new generation customers for the ad’s 30th anniversary. The impact of the campaign won’t show up on Nike’s bottom line until its next quarterly report.
“How we look at the item will be how do we connect along with engage in a way which’s relevant along with inspiring to the consumers which we’re here to serve,” he told analysts on an earnings call Tuesday. “We’ve seen record engagement with the brand as part of the campaign, along with our brand strength … will be a key dimension which contributes to the ongoing momentum which we’re building across the Nike portfolio.”
This kind of also isn’t once Nike has been inside news This kind of year.
Former President Trevor Edwards, who was widely likely to succeed Parker as CEO, was forced to retire last month amid complaints of rampant sexual harassment along with discrimination. Parker apologized for the company’s conduct in May along with has implemented several adjustments to ensure women along with minorities are treated with respect. Several female employees who are no longer with the company are suing Nike over pay discrimination.
Nike will be, meanwhile, trying to sell more directly to consumers along with court female customers. inside U.S., where sales growth has stalled of late for many sportswear retailers thanks to a series of bankruptcies coming from Sports Authority along with various other wholesalers, Nike will be investing in stores along with in women’s athletic wear, rivaling Lululemon.
Earlier This kind of summer the company said the item was finally seeing a “return to growth” in North America, thanks to a series of completely new product launches along with better inventory management which favors “scarcity” of some items, encouraging shoppers to pick them up faster or risk not getting what they want.
The company also said the item repurchased 17.8 million shares for roughly $1.4 billion during the quarter as part of a four-year, $12 billion stock buyback program.