After Nike Inc. (NYSE: NKE) reported its fiscal first-quarter financial results late on Tuesday, the investor reaction Wednesday practically wiped out all of Nike’s gains so far this year. It doesn’t seem like the sports apparel field is getting any easier for the swoosh.
The sports apparel giant said that it had $0.57 in earnings per share (EPS) and $9.07 billion in revenue, compared with consensus estimates from Thomson Reuters of $0.48 in EPS and revenue of $9.09 billion. In the same period of last year, Nike posted EPS of $0.73 and $9.06 billion in revenue.
The company announced in mid-June that a new company alignment was created as a result of the Consumer Direct Offense, which simplified Nike Brand’s structure from six geographies to four, consisting of North America; Europe, Middle East & Africa (EMEA); Greater China; and Asia Pacific & Latin America (APLA).
During the quarter, revenues for the Nike Brand were $8.6 billion, up 2% on a currency-neutral basis driven by growth in Greater China, EMEA and APLA, including growth in Sportswear. At the same time, revenues for Converse were $483 million, down 16% on a currency-neutral basis, mainly driven by declines in North America.
In terms of its segments, Nike reported:
- Global Footwear totaled $5.49 billion.
- Global Apparel was $2.65 billion.
- Global Equipment was $420 million.
On the books, Nike cash, cash equivalents, and short-term investments totaled $5.52 billion at the end of the quarter, compared with $4.79 billion at the end of the same period last year.
24/7 Wall St.Mark Parker, Nike’s board chair, president and CEO, commented:
This quarter, we captured near-term opportunities through our new Consumer Direct Offense. Looking ahead to the rest of fiscal 2018, we will ignite NIKE’s next horizon of global growth through the strength of our brand, the power of our innovative products and the most personal, digitally-connected experiences in our industry.
Shares of Nike were last seen down about 4% at $51.60, with a consensus analyst price target of $60.40 and a 52-week trading range of $49.01 to $60.53.
100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
