Apparel and footwear company Nike Inc NKE reported first-quarter financial results after market close Thursday. Here are the key highlights for Nike investors.
What Happened: Nike reported first-quarter revenue of $12.7 billion, up 4% year-over-year. The total came in ahead of a Street estimate of $12.27 billion, according to data from Benzinga Pro.
Earnings per share for Nike were 93 cents in the first quarter, beating a Street estimate of 92 cents per share.
The company reported NIKE Direct sales of $5.1 billion in the first quarter, up 16% year-over-year. NIKE Brand digital sales were up 16% year-over-year in the first quarter. Sales of the Converse brand in the first quarter were $643 million, up 2% year-over-year.
First-quarter revenue in China was down 16% year-over-year. The company cited the strength of the EMEA, APLA and North America regions with double-digit growth.
“Our strong start to FY23 highlights the depth and breadth of NIKE’s global portfolio, as we continue to manage through volatility,” Nike CEO John Donahoe said.
“Our competitive advantages, including the strength of our brand, deep consumer connections and pipeline of innovative product, continue to prove that our strategy is working.
Related Link: How To Trade Nike Stock Before And After Q1 Earnings
What’s Next: Nike ended the quarter with $9.7 billion in inventory, up 44% year-over-year. The company cited an elevation in in-transit inventories and the continued supply chain volatility.
Nike ended the first quarter with $11.9 billion in cash and cash equivalents.
In the first quarter, Nike returned $1.5 billion to shareholders via $480 million in dividends and $1 billion in share buybacks. A $15-billion share buyback plan was terminated in August 2022 after $9.4 billion in shares were bought back.
A new, four-year $18 billion share buyback plan was announced in June 2022 with $300 million in shares bought back under this plan in the first quarter.
“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,” Nike Chief Financial Officer Matthew Friend said.
NKE Price Action: Nike shares are down 3.47% to $92.02 in after-hours trading.
Nike shares have traded between $94.48 and $179.10 over the last 52-weeks, hitting new yearly lows during Thursday’s trading session.
Image and article originally from www.benzinga.com. Read the original article here.