North America, a key market for the company, recorded a 6% sales growth, while sales in Europe, the Middle East, and Africa advanced 9%. Also contributing to the overall top-line growth was China, where sales witnessed a 20% increase.
Gross margin increased 50 basis points to 44.2% helped by favorable pricing, which was partially offset by higher product costs.
“NIKE’s Consumer Direct Offense, combined with our deep line up of innovation, is driving strong momentum and balanced growth across our entire business. Our expanded digital capabilities are accelerating our complete portfolio and creating value across all dimensions as we connect with and serve consumers,” said CEO Mark Parker.
Gross margin increased helped by favorable pricing, which was partially offset by higher product costs
In May, Parker had come under immense pressure over a sexual harassment scandal involving some senior executives. Several executives were forced to leave the company after it carried out an investigation into the matter. Trevor Edwards, the former president who was a prospective successor to Parker, was among those who stepped down.
Also see: Nike Q1 2019 earnings transcript
On the other hand, Nike remained resilient in the face of the controversy triggered by the ad campaign involving Kaepernick earlier this month. Though the issue had triggered a selloff initially, the stock bounced backed later.
Over the past twelve months, Nike shares gained around 64% and are currently hovering near the $85-mark. The stock closed Tuesday’s regular session higher but pared the gains in the after-hours trading.
Nike pops on earnings and revenue beat; North America returns to growth
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