The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
BEAVERTON, United States — Nike Inc.'s first-quarter revenue and profit beat Wall Street estimates on Tuesday as the sportswear maker's strategy to sell sneakers and apparel directly to consumers through its own stores and online retailers powered growth.
Shares of the Oregon-based company rose more than 5 percent to $91.84 in extended trading, putting them on course to open at a record high on Wednesday.
Wall Street has been bullish about Nike after the world's largest footwear maker unveiled "Nike Direct," a push to sell more of its products directly to customers through online platforms such as Amazon.com Inc, rather than wholesalers.
Nike has also launched pop-up stores that caters to "sneakerheads" or loyal fans of the brand in several big US cities in an effort to build a strong relationship with its customers and gain market share.
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The move helped the company sell more products at full prices, which boosted gross margins to 45.7 percent in the first quarter ended Aug. 31, higher than the 44.41% anticipated by analysts.
Revenue in North America, its biggest market, rose 3.6 percent, while sales in Greater China, its fastest growing market, jumped 22 percent.
Net income rose to $1.37 billion, or 86 cents per share, from $1.09 billion, or 67 cents per share, a year earlier. Revenue rose 7.2 percent to $10.66 billion.
Analysts were expecting the company to earn 70 cents per share and revenue of $10.44 billion, according to IBES data from Refinitiv.
By: Nivedita Balu in Bengaluru; Editor: Arun Koyyur.
From analysis of the global fashion and beauty industries to career and personal advice, BoF’s founder and CEO, Imran Amed, will be answering your questions on Sunday, February 18, 2024 during London Fashion Week.
The State of Fashion 2024 breaks down the 10 themes that will define the industry in the year ahead.
Imran Amed reviews the most important fashion stories of the year and shares his predictions on what this means for the industry in 2024.
After three days of inspiring talks, guests closed out BoF’s gathering for big thinkers with a black tie gala followed by an intimate performance from Rita Ora — guest starring Billy Porter.