Nike, Inc. (NYSE: NKE) has reported a decrease in net profit for the first quarter of 2023, despite a modest increase in revenues. The company’s stock suffered a big loss following the announcement this week.
First-quarter net income dropped to $1.47 billion or $0.93 per share from $1.87 billion or $1.16 per share in the corresponding period of last year. The bottom line was negatively impacted by higher costs.
Meanwhile, revenues moved up 5% year-over-year to $12.69 billion. Weakness in the apparel segment was more than offset by higher sales in the core footwear division.
Read management/analysts’ comments on Nike’s Q1 2023 earnings
“NIKE’s first quarter results set the foundation for another year of strong growth. Our focus continues to be the consumer, as we take action to navigate near-term dynamics while expanding long-term structural benefits through our Consumer Direct Acceleration strategy,” said Matthew Friend, the chief financial officer of Nike.