Nike’s strategy that focuses on product innovation and building digital capabilities appears to be paying off. Last quarter, the company saw revenue growth across all its segments, with the exception of Global Brand Divisions, which saw a double-digit decline. Revenues increased across all geographies with the highest growth of 22% in Greater China. Despite the momentum, higher expenses might put pressure on margins in the second quarter.
Also read: Nike Q1 2020 Earnings Conference Call Transcript
In the first quarter of 2020, Nike topped revenue and earnings estimates. Revenue increased 7% to $10.7 billion while EPS jumped 28% to $0.86. Revenues increased 10% for the NIKE brandand 8% for Converse on a currency-neutral basis.
Shares of Nike have gained 33% so far this year and 6% in the past one month. The stock was up 1.3% in morning trade on Monday. The majority of analysts have rated the stock Buy and it has an average price target of $104.94, representing a 5% upside from the current level.