NIKE DELIVERS FIRST QUARTER GAINS BUT DOESN’T IMPRESS STOCK MARKET
Oregon-based outdoor retailer Nike reported strong fiscal 2017 financial results for its first quarter ended August 31, 2016, driven primarily by international growth, but it may not have been enough for investors
Diluted earnings per share for the quarter were $0.73, up 9 percent, while net income increased 6 percent to $1.2 billion. Overall revenues for Nike, Inc. rose 8 percent to $9.1 billion while revenues for the Nike brand posted a 10 percent gain, to $8.5 billion, with the strongest results I Asia and Europe, and strong growth in sportswear, running and the Jordan brand. Revenues for Converse were $574 million, a gain of 4 percent, driven primarily by growth in North America.
While the numbers beat analysts’ expectations, the company’s stock dropped approximately 4 percent in after-hours trading on Tuesday, and was still teetering on Wednesday morning. At 9:40 a.m., the stock was trading at $54.44 per share, down more than a point from the official closing of $55.73 per share the previous evening
“Fueled by an incredible summer of sport, Nike delivered strong global growth—and led the industry through disruptive innovation,” said Mark Parker, chairman, president and CEO, Nike, Inc. “Q1 also showed how we’re amplifying every category through sports style innovation, transforming retail by connecting the digital and physical experience and ushering in a new Era of Personalized Performance – through product, consumer connections and our supply chain. Our strategic investments in these growth opportunities continue to deliver long-term value to our shareholders.”
