Categories Earnings, Retail

Nike tops Q1 2020 estimates; stock advances

Sportswear giant Nike (NYSE: NKE) surpassed consensus earnings and revenue estimates in the first quarter of 2020. The company reported earnings of $0.86 per share on revenue of $10.7 billion. The Street had expected Nike to post earnings of $0.70 per share on revenue of $10.44 billion. Nike shares were up about 5% during the after-hours. 

Nike stock was almost close to its 52-week high ($90.00) that it reached in April when it witnessed the day’s high ($88.69) during the early hours of today’s regular trading session.

Nike tops Q1 2020 earnings and revenue estimates; NKE stock advances

Revenue increased to $10.7 billion in the first quarter, up 7% on a reported basis and up 10% on a currency-neutral basis, driven by growth across all geographies. 

Nike’s profit surged 25% to $1.4 billion for the first quarter ended August 31, 2019 and EPS climbed 28% to $0.86, driven primarily by strong revenue growth and gross margin expansion.

On a currency-neutral basis, revenues for the NIKE Brand increased 10% to $10.1 billion in the first quarter of 2020, 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, up 8% 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.

Read: Jabil (JBL) reports mixed results for fourth quarter of 2019

“Even amidst the increasingly volatile macroeconomic and geopolitical environment, we expect our unrelenting focus on better serving the consumer to continue fueling strong, broad-based growth across our global portfolio,” said said CFO Andy Campion.

Also Read:  Has the COVID-19 pandemic led retailers to change their assortment and store fleet strategies?

During the end of July, Nike’s rival Under Armour (NYSE: UAA) reported its second quarter results. Under Armour shrunk its net loss in the second  quarter and beat the analysts’ views. However, sales missed consensus’ targets.  

Nike stock had given a positive return of 18% year-to-date and 3% in the trailing 12 months.

Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips 

Most Popular

Palantir Technologies (PLTR) to start trading tomorrow through direct listing

The IPO market witnessed a boom in 2020, despite the pandemic weakening the macro environment. Many tech companies have witnessed a blockbuster listing this year and few more tech firms

Micron (MU) Q4 earnings, revenue top expectations

Micron Technology Inc. (NASDAQ: MU) reported strong earnings and revenue growth for the fourth quarter of 2020, benefitting from the pandemic-driven digital transformation spree. However, the company's stock dropped during

After a strong year thus far, Zynga (ZNGA) appears well-positioned for 2021 as well

Mobile game company Zynga Inc. (NASDAQ: ZNGA) has seen its stock gain 49% since the beginning of this year. The company registered strong results in the first half of 2020

Top